Canadian Finance Blog

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One Debt Down… Posted: 20 Apr 2011 02:00 AM PDT I hate the feeling of being in debt. There’s something about having the weight of a financial burden over my head that I just can’t get over. I know that some people aren’t particularly bothered by it, and while I wish that I had the ability to just brush aside debt, I can’t. Paying off debt is one of those things that I think about at least once a day, and in doing so, am reminded of ways I can save money. It is frustrating when there are things that I want to buy, or to save for, or to do, but the first thing that I think of when I see the price tag for unnecessary expenses is always “but what about the debt?” That being said, there is a fantastic feeling that you get when you do start to pay off your debt. Even just tracking your debts as you slowly pay them off can give you small mental and emotional rewards as you see the numbers slowly tick towards zero. It feels like a slog, at times, when you see your debt barely go down after you make a payment, but when you remember 6 or 12 months back, suddenly you realize just how far you’ve come over the last year. This emotional boost can be incredibly vital for keeping your spirits up while you wait to become debt free. Do yourself a favour and look back at what your loan/debt balance was a year ago. You’ll either become suddenly motivated to stop shopping, or you will feel rewarded for all the hard work that you have done over the last year. This last weekend I was able to pay off one of our debts. Mentally, paying off debt is a huge relief as I suddenly don’t have to worry about this particular loan anymore. No longer do I have to add it into my calculations when I look at our net worth, and I don’t have to wonder when I will be free of it. Instead, I can simply relax, smile, and recognize that I needed the money at the time that I borrowed it, and now that I don’t need that money anymore, I can pay it off. One down, a few more to go. Granted, it was the smallest of our loans, and it had the lowest interest rate, so it is not as if this makes some huge change in our financial lives, or has suddenly freed up hundreds of dollars every month. Far from it. The true benefit, however, is in the recognition that debt repayment is not a bottomless hole. It can, and will, be all paid off eventually. Paying off this debt completes one of our financial resolutions that we set at the beginning of the year. It is, sadly, about two weeks behind schedule, but it still managed to work itself out. The second goal that we had set for ourselves for 2011 was to pay off our highest interest loan. This one is a fair bit bigger than the loan that we have just paid off, but we are making steady progress towards it. I definitely still think that this is a doable goal for us and our family, and it will be what we are striving towards over the next 6 months. Here’s another few ways you can give yourself a quick financial boost: sell something find an odd job bike to work for a week Then, take the savings and drop it on your debt. Paying off debt is a quick win for you, and for your bank account. As we reach the 1/3 mark of the year, how are you doing on your financial resolutions? Any small debts you can pay off to give yourself a mental and emotional boost? Related Posts: Financial Resolutions How to Get Out of Credit Card Debt 5 Common Mistakes People Make When Trying To Get Out Of Debt One Debt Down… originally appeared on Canadian Finance Blog on April 20, 2011.

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