So far this month I’ve paid off $664 on CC10, things are really moving along in the credit card 💳 front.
I’m also participating in a few saving challenges, word of the month, no dining out and, 52 Week Challenge.
Basically the word of the month, you select a word and the corresponding letter of the word in the alphabet you save. For example your word is save. S is the 19th letter, A is the first, so I’d save $19, and $1.
For each day I do not dine out, I add $1. I’m taking the funds from my cash envelopes ✉️ , forcing me to try and come in under budget.
I’ll admit, it’s been tough but I’m liking it, the challenges that is.
However; I have a question, how do you all stay motivated? I’m so tired at times. Though I’m paying off debt, my student loans continue to grow, and on paper the debt seems to not decrease. Last year was the year I was to begin to tackle the student loans, then I got hit with the lawsuit. At times I feel defeated. I know I can do it, but lately I’m just bummed about it.
How Do You Stay Motivated?
January 20th, 2020 at 02:12 pm
January 20th, 2020 at 02:48 pm 1579531732
January 20th, 2020 at 02:50 pm 1579531851
Have you looked into options to reduce the interest rate on your student loans? I don't know all the options out there or rates, as it's been a long time. Sometimes consolidation loans were lower rates, or locked in or something! Definitely make sure you are not missing an opportunity for a lower rate.
Have you plugged your debts into a calculator like undebt.it or whats the cost lately? Those used to help me at least know where we stood and consider ways to make it go faster. I do think the more you can focus on one thing at a time, the faster it goes.
Are your saving challenges going to savings or towards paying debt?
And I will say you are not alone in not feeling motivated or defeated. I have felt that many times over our finance journey and sometimes feel it even now with our big savings goal. College expenses and airline travel get in the way, but those are part of our goals too. I just keep focusing on the forward progress knowing that action in that direction is all good.
January 20th, 2020 at 03:41 pm 1579534902
Yes, it is hard to stay motivated but I really believe that you have "it" this time. Keep up the good work. It's a long process to get out of debt and little by little, you are doing it!
January 20th, 2020 at 04:13 pm 1579536827
I never thought about consolidating the loans or a lower rate, I’m nervous about it and to be honest I don’t know why other than I’m really not too financially savvy.
I’ll do a little more research and post questions here.
January 20th, 2020 at 04:22 pm 1579537337
January 20th, 2020 at 04:50 pm 1579539016
January 20th, 2020 at 05:06 pm 1579539973
January 20th, 2020 at 05:15 pm 1579540519
January 20th, 2020 at 05:52 pm 1579542773
I also think looking at how much you paid toward debt - not just the amount you paid off, but the amount including the interest would show you how much you will have available to tackle student loans. I agree to look at Greenleaf’s post about refinancing. Don’t let fear stop you. That, I think, is how predatory lenders ‘steal’ from people - they let you think that you are not savvy enough, all the while milking you of money. Income based repayment is a huge scam, because people don’t realize that they are just adding to their loan balance. I am not in favor of the government paying off student loans, but I am in favor of them forcing way more truth in lending and education before people sign away their lives - plus some relief to those who were scammed.
I would also ask yourself - are you really deprived of anything by focusing on debt payment? You cook your own food instead of fast food - way healthier. You buy less clothes and wear what you have - makes you think creatively. You don’t buy tchotchkes to clutter your home - less to dust. You find free entertainment - same fun. Books from the library - exact same book, plus no piles of books all over your house. Sure, there are things you defer like vacations, travel, stuff you want, but you prioritize. You wanted to buy your house and you found a way.
Paying off debt is like losing weight - it isn’t a short term thing, it’s a lifestyle change. You motivate because you see how great it makes your life, not juggling whether to pay the light bill or buy food...to watch your bank balance grow...
You are doing great, and you have the ability to learn anything you want to understand!
January 20th, 2020 at 06:20 pm 1579544408
Are you on income based repayment? That definitely will slow down the ability to ever pay them off, you have to be paying interest and principal in order to see progress. It is very important to understand how interest works. I took a whole class on the time value of money in college. Is your interest rate on your mortgage the same, greater or less than your student loans? Do you know what your interest rate is on your credit card and student loans?
January 20th, 2020 at 11:43 pm 1579563814
January 21st, 2020 at 12:32 am 1579566754
January 21st, 2020 at 12:41 am 1579567279
January 21st, 2020 at 04:42 am 1579581778
Once the CC is gone you will start making progress on the student loans and they will stop going up. If you can refinance them, that will help a lot. Even if not, if you can make full payments on each, plus extra on the smaller one you will start to see the numbers decrease. I do think you should plan a small reward in after you have paid off this last credit card. You have accomplished a lot even though your brain keeps telling you that you haven't. Think how much worse it would be if you hadn't put in all this hard work and kept overspending on your cards. Patience is key and so is being kind to yourself.
January 22nd, 2020 at 07:03 pm 1579719793
Are you on Instagram? If so, you may want to check out Clever Girl Finance - "Empowering women to achieve real financial success!"
January 22nd, 2020 at 08:18 pm 1579724296
I also think you also need to set aside a little fun money for a treat here and there so you don't feel like it is all work and no play.
Years ago Kathy Bates starred in a movie called "A Home of Our Own" about a mother and her six kids trying to make a home. For Christmas she gave the kids tools and it was not well received. She was so focused on the house, she forgot that they needed other things to motivate them.
That being said or written, following along your journey, you have done exceptionally well. I think we all struggle here and there and fortunately the kind folks at SA are good about encouragement.