Last week we talked about the snowball method for saving money versus the avalanche method and the importance of creating a budget so you can start paying off your debt. Once you have your method picked out, it’s a good idea to add some visuals and some other tips so you can stick to your debt pay-off plan.

Make a Visual

You know you’re paying off your debt, but it’s great to actually watch the debt go down, aside from looking at your statements. For example, you could make an empty “debt thermometer” and as you pay off your debt, color in the red until you reach your goal! You can also create a debt repayment paper chain where each link represents a certain amount of money. As you make payments, rip a link off and throw it in the trash!

Don’t Burn Out

When living so frugally and giving all your extra money toward becoming debt free, it’s easy to feel burned out at times; don’t let it happen! Give yourself a few “within reason” rewards every now and then. For example, go out to eat once in a while or buy yourself something you want/need, so it’s not an unnecessary buy. By giving yourself little rewards, it gives you the momentum to keep going.

Extra Tips

Some extra ways to become debt free are to automate payments towards your debt. If you have credit card debt, set up a monthly payment out of your checking account to pay it down even more. If you get a bonus from work, act as though you didn’t get one and put it towards your debt! You could take a small amount and treat yourself with it, but be sure to put at least 90% of your bonus towards your debt; do the same thing for your tax refund if you get money back!

Find some other really great and original tips to paying off debt that you may have never heard of here!

When You Pay it all Off

The day comes when you’ve paid off all your debt; feel incredible about it! You’ve accomplished a remarkable feat that many struggle to accomplish. Don’t get overly excited and buy yourself a big fancy toy and put yourself back in debt. To keep your debt off, take all of your credit cards with the exception of one, and cut them up. It’s better to destroy the physical credit card so you have no chance of using it, rather than to cancel your credit accounts. Canceling credit cards can often affect your credit score. With you using only one credit card, it’s much easier to pay off all debt at the end of each month.

We hope you’ve learned some new things about tackling your debt and that you’re excited to start the process to become debt free. Take what you’ve learned and start the journey of becoming debt free, it’s more than well worth it in the end.