One of the problems with paying down debt is that other things sometimes get in the way. Then it becomes difficult, because we often feel as though we aren’t making the progress we would like. However, if you want to be successful, you need to make debt paydown a priority.
Often, one of the reasons that things don’t happen with your finances and your life the way you would like them to is because you haven’t really made the decision to create a priority.
What is Most Important in Your Finances?
First of all, you need to figure out what is most important in your finances right now. What is your biggest goal. If debt paydown really is your biggest goal, then that is what you need to focus on. If you have another goal that’s more important, such as saving up for a down payment or saving for retirement, then you might not be ready to really focus on paying down debt.
However, there are some good reasons to consider making debt paydown a priority. They include:
- Save more money over time, since you won’t be paying interest for as long.
- Less financial stress, since you won’t have to worry about making debt payments all the time.
- Fewer difficulties in relationships, since you won’t be stressed and letting that stress get the best of you all the time.
- More freedom to do what you want with your money, since it isn’t claimed by other obligations.
Paying down debt can be a good way to get ahead with your finances, so if you are serious about paying it down, it needs to be a true priority.
Put Debt Paydown First
When you prioritize something, you make it the first thing on your list. If paying down debt is your priority, that means you take care of it before you take care of other expenses. This means making a debt payment before you purchase a fun pair of new shoes, or before you go out to eat. It might also mean that you put your plans for buying a home on hold, or you put off some of your goals.
Depending on the type of debt you have, and how important it is to you to pay it down, you might need to rethink your current strategy. You might not even need to pay off ALL your debt as quickly as possible, either. In some cases, it makes sense to focus heavily on your high-interest debt first, and then tackle your other debts at a slower pace.
Really think about what’s most important to you and your finances right now, and then focus on that. If it’s debt paydown, see if you can make it happen, whether you need to cut expenses dramatically, earn more money, or do both.
The idea is to figure out whether or not it’s truly important to you to pay down your debt quickly. If it is really that important, it’s time to get creative and look for ways to make it happen so that you can begin moving your finances in a way that makes sense for you and your family.