How to Keep a Positive Mindset While Paying Off Debt

Hello, my budgeting friend! If you’re reading this, chances are you’re on the road to paying off your debt, or maybe you’re considering starting. It’s a path many of us have walked, and to be honest, it can be a bit of an emotional rollercoaster. Keeping a positive mindset while paying off debt can be hard! Sometimes I feel like we’re taking two steps forward and one step back when it comes to our finances. So you’re not alone. 

Get your tea and your comfy chair ready, and let’s chat about some of the ways paying off debt can sometimes bring you down—and more importantly, how you can keep your spirits up through it all. 

Why Paying Off Debt Can Be a Downer

When you first think about paying off your debt, you can feel excited at the prospect of your debt-free future. You’ll envision what you can do with the money you’ll have left from your paycheck when you’re no longer sending big chunks of it off to the credit card companies every month. You’ll be free of the burden of debt that has been weighing you down and it’s going to be awesome. You’ve set your financial goals and you’re ready to tackle them! Then, once you dig into paying off your debt, reality sets in, and sometimes it’s not as fun as the picture you painted in your head. 

Here are some of the things that make it hard to keep a positive mindset while paying off debt:

The Overwhelming Nature of Debt

Sometimes, just looking at the total of how much debt you owe can feel you’re like standing at the base of a mountain, unsure where to begin climbing. Have you ever felt a sense of dread just thinking about it? It can feel overwhelming to see the total that you owe, and maybe you don’t even know how it got to be so much. And then you feel guilty, or mad at yourself for the financial decisions you made, or just downright discouraged and start to wonder if you should even try. 

These are common feelings, but remember, you won’t make any progress unless you take that first step. Just start. Even if all you do this month is track your spending, you’ve started doing something. When you work diligently and start to see the amount you owe steadily decreasing, the overwhelm can start to lessen. 

Sacrificing Today for Tomorrow

Cutting back on your favorite treats or activities can feel like you’re constantly saying “no” to yourself. If you’re trying to pay off debt, you probably have to say “no” to yourself, because those treats and activities just don’t fit into your budget. They may even be the cause of some of your debt. If you’ve never lived on a budget before, it can feel like a big change to cut back on things that you’ve gotten used to having. 

It’s tough when it seems like everyone else is enjoying life, but you’re stuck on the sidelines with little to no room in the budget for “extras.” Does it sometimes feel like you’re missing out? It’s okay to feel that way. For many of us, paying off debt will mean we have to give up some things we like or enjoy, or at least cut them back a little. It’s not something we want to do, but it is something we have to do in order to make progress.

It’s important to remember that the saying “no” is for a season. You’re saying “no” now so that later–when you’re debt-free–you will be able to say “yes” to some of the things you want to do.

The Slow Progress

Paying off debt can feel like a marathon. A very, very long marathon. Uphill, both ways. In the snow. When progress seems slow, it can be discouraging. Have you ever celebrated paying off a small chunk of your debt, only to feel defeated when you realize how much is still left to pay? It’s just part of the process. 

Unless you suddenly come up with a lot of extra money, paying off debt takes time. Most likely, that pile of debt didn’t happen in a couple of months, so it will take time and patience to make it go away. I have a theory that if we did suddenly have the money to pay off our debt all at once, would we learn the lessons that we are learning through the process of paying it off slowly, making sacrifices, changing our spending habits, and learning day by day and month by month to live within our means and be content? Hmmmm….. 

Unexpected Expenses

Just when you think you’re on track, things are going great, you’re making progress…life throws a curveball—a car repair, a medical bill, a broken home appliance. These setbacks can be so frustrating. It seems that they happen in multiples, as well. We’ve had medical bills, a broken dishwasher, and veterinarian bills in the last few months. Our savings account took a nosedive for sure!  

How do you cope when things don’t go as planned? The most important thing to remember is that you’re resilient and capable of handling these challenges. They may slow your journey a bit, but I always tell myself that small progress is still progress. Whatever you do, don’t give up, throw your budget out the window, and say, “Oh, well, there’s no point trying to pay it off now.” Pick back up where you were and start again. 

Comparing Your Journey to Others

In the age of social media, it’s easy to feel like you’re behind when you see others seemingly living debt-free lives. Have you caught yourself feeling like you’re in last place when you compare your progress to others? They may have nicer cars, a nicer home, go on vacations. How do they do it?

Remember, everyone’s journey is unique. You may have no idea of someone’s financial situation. Those pretty new cars they drive may have come with car payments they’re stressed out about every month. The only financial situation you can truly know is your own. Focus on that and don’t fall into the comparison trap. 

Staying Positive: Practical Tips

Well, I’ve had enough of talking about the hard things about paying off debt, haven’t you? Let’s move on to the good stuff—the strategies that can help keep your attitude positive and your spirits up as you tackle your debt. Let’s turn those frowns upside down!

Set Small, Achievable Goals

Break down your debt into smaller, more manageable chunks. Have you ever noticed how satisfying it is to tick things off a to-do list? I love to do that. I make lists just so I can cross things off. Apply the same principle here. 

Celebrate each small victory. It could be as simple as paying off your smallest debt, or just paying more than the minimum amount for your payment to your credit cards, or reaching a particular savings milestone in your emergency fund. These mini-wins boost motivation and make the long journey to debt freedom feel less daunting. Small, achievable goals increase your confidence that you can, indeed, do this! 

Create a Vision Board 

It might sound a bit cliché, but visualizing your goals can be a great way to stay motivated. Take a close look at what financial freedom means to you. Is it having money to go on a vacation without going into debt? The peace of mind that comes with knowing you can pay all your bills and handle an unexpected expense? The boost to your mental health when your high credit card balances are no longer causing you anxiety? The satisfaction of knowing you no longer owe anyone money? 

Pin pictures, quotes, and anything else that inspires you. Some people are motivated by keeping a debt payoff chart, showing their total debt and the amount they’ve paid off. I keep track of our debt payoff in my Clever Fox Budget Planner, but here are some printable debt payoff trackers to give you ideas This constant visual reminder can help you stay focused on the bigger picture.

Budget with Flexibility

Yes, budgeting is crucial, but it doesn’t have to be restrictive. Allow yourself small indulgences as part of your plan. Have you ever tried a “fun fund”? It’s a small amount set aside for guilt-free spending. Grampy and I do this. It really does help to have a small amount to spend as you wish. It doesn’t have to be much money, but when you find you’re saying “no” to a lot of things because you’re focusing on paying off debt, it can be nice to say “yes” to a small treat. It can help you not to feel deprived, and your motivation to stick to the budget can remain high. 

If the idea of a “fun fund” doesn’t appeal to you, perhaps you would prefer to have a small celebration when you reach a milestone. For example, going out to dinner when you’ve paid off a certain amount of debt. It’s important to find the balance that lets you make progress on your debt payoff, while still allowing a treat now and then if it will help you stay motivated.

Join a Supportive Community

You’re not alone in this, but it can certainly feel like it at times. Sometimes a close friend or family member isn’t the best person to share your financial struggles with. Someone who has never had a mountain of debt looming over them may not understand why you’re ecstatic because you paid off a $500 credit card bill. But there are countless forums and groups where people share their debt repayment journeys. 

Engaging with these online communities can provide encouragement, advice, and camaraderie. Ever had a day when you just need someone to understand what you’re going through? These groups can be a lifeline. The journey to debt freedom can sometimes be a lonely one. Find your people and be encouraged and inspired. 

I’m sharing our debt-payoff journey here on the blog. In the Debt-Free In Three category, you’ll find updates on our progress.

What are you focusing on?

It can be easy to focus on what you don’t have, and when you’ve cut your spending to focus on repaying your debt, there may be quite a few things you don’t have. No vacations, few meals out, minimal entertainment spending. No new furniture, more simple and budget-friendly meals. Paying off debt requires the “Use it up, wear it out, make it do, or do without” way of thinking. 

But what if you took a different perspective? What if you looked around where you lived for fun and interesting things to do? Lots of towns have free activities and recreation areas. Maybe you could embrace the idea of “dinner and a movie” at home. Candles on the table and your pretty dishes can make a meal feel special. Try making over your furniture if you’re wanting a new look for your home. And simple and budget-friendly meal ideas abound on the internet.

This simple shifting of your perspective plays an important role in changing your mindset from scarcity to abundance. Try doing what you can with what you have. It’s powerful.

Embracing the Journey

Remember, paying off debt is not just a financial journey; it’s a personal one too. It teaches discipline, resilience, and the value of patience. The road to being debt-free can be challenging, but it’s also rewarding. Each payment is a step closer to financial freedom and the life you envision for yourself.

Be kind to yourself during this time. Celebrate your hard work, learn from setbacks, and keep moving forward. Remember that the ability to keep a positive mindset while paying off debt is about finding balance and perspective. It’s about acknowledging the challenges but also celebrating the victories. You’re not just paying off debt; you’re creating a brighter, more secure future for yourself. And that, my friend, is something truly worth celebrating.

Until next time, happy budgeting!

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