How to Get Positive About Debt

Dealing with debt can be depressing. Many consumers feel hopeless and frustrated trying to pay off large amounts of debt. However, according to the Federal Trade Commission, the majority of consumers struggle with this issue at some point. Making a plan to get out of debt and staying positive can help keep you motivated.

Instructions

1

Evaluate your debt. If you have large amounts of debt, it's easy to get discouraged. However, it's important to take a realistic look at exactly how much you owe. The number might be shocking, but it's the first step to creating a plan for payoff.

2

Create a plan to pay off debt. Having a plan for paying off debt can help you stay positive. It puts you back in control of the situation. List your debt obligations. Place the highest interest debt at the top. First, work on paying off the highest interest debt (make minimum payments on everything else). Once the debt is paid, focus on the next highest interest debt obligation.

3

Find hidden money to pay off your debt. Often, it's the little expenses that add up: daily latt or after work drinks with friends, for example. Add up these expenses. For example, your coffee habit could be costing you $100 or more each month. Cutting back to once a week frees up cash to pay off debt.

4

Make positive behavior changes. Evaluate the habits that contributed to your debt and identify ways to change those behaviors. For example, if most of your purchases were impulse buys, consider leaving your credit cards at home. This way, if you really want to purchase something, you have to drive home to get a credit card.

5

Reward yourself for successes. Paying down debt is a huge accomplishment. When you pay off debt, do something special. Take a vacation day to go hiking or another activity you enjoy. Focus on activities that are low or no-cost.