Paying off debt can feel as frustrating as stepping on the scale after the holidays - especially when progress is slow or appears out of reach. However, if you’ve ever tried to get healthier, you know real results don’t come from quick fixes. It takes planning, consistency, and willpower to stick with it.
Luckily, the same tools and habits that help you reach fitness goals can also help you take control of your finances. In this article, we’ll explore how managing debt is like losing weight and reveal tactics that will jumpstart your progress.
#1 - Step on the Scale
Before you can begin making progress, you need to know where you currently stand. In weight loss, that might mean weighing in or checking your measurements. Shedding debt involves taking stock of all your outstanding loans and credit cards.
Take time to gather information on all your current debts:
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Who do you owe money to?
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What are the current balances and interest rates?
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What are the minimum monthly payments?
Gaining a clear picture of your current situation is the first step toward taking control. It’s helpful to use a simple spreadsheet or budgeting app to list and organize your debts.
#2 - Choose a Plan That Works for You
Not every diet or workout plan is right for everyone and the same is true when paying off debt. You need a strategy that aligns with your lifestyle and goals.
For many people, debt consolidation can be a powerful starting point, like hiring a personal trainer or using a meal plan to kickstart your health goals. This financial tool rolls multiple debts into a new, lower-rate loan. The best part? You’ll instantly save money – giving you extra funds each month to pay down debt and providing more wiggle room in your budget.
Debt consolidation might sound complex or time-consuming; however, the process is easy, and the savings are immediate!
#3 - Clean Out the Pantry
You wouldn’t leave bags of chips or cookies lying around if you’re trying to eat healthier. In the same way, removing financial temptations helps keep your debt diet on track.
One of the biggest hurdles debt-shedders face is credit cards. When you consolidate debt, your existing credit card balances are typically paid off and transferred to a new loan – leaving you with $0 balances on each card. Many find it challenging to resist using those cards again, ultimately racking up more debt.
Once you consolidate debt:
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Put away your old credit cards (take them out of your wallet).
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Avoid making impulse purchases.
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Create a budget that keeps your spending in check.
It’s also helpful to delete saved credit cards from online shopping sites. If you find the temptation to spend on these cards too great, close the accounts to eliminate the urge to spend.
#4 - Track Your Progress
Just like stepping on the scale or counting calories helps you remain focused on your health and fitness goals, monitoring your money empowers you to keep on track with your financial fitness progress.
Schedule time on your calendar to check your balances, track your payments, and adjust your budget as needed. Taking charge of your financial health requires you to hold yourself accountable.
Remember, don’t get discouraged if you make a mistake or face a setback. Pick yourself up and keep moving forward. The goal is progress – not perfection!
#5 - Build Better Habits
Long-term weight loss stems from lifestyle changes - the same is true for financial fitness. As you progress through the process, you want to make tweaks to your lifestyle that will help you make smarter financial decisions and reinforce positive habits.
That could mean:
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Automating your debt repayment plan with payroll deductions.
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Reviewing your budget weekly and making necessary adjustments.
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Finding ways to save on everyday expenses.
Often, little changes can compound and bring significant results. Just like taking the stairs instead of the elevator can help burn a few extra calories, taking two minutes to review your daily spending can keep you focused on your financial goals.
#6 - Celebrate Small Wins
Losing five pounds is a big deal – so is paying off a credit card or reaching a new payoff milestone! Remaining motivated on your debt journey means recognizing and celebrating progress along the way.
Just like you might buy a new outfit to reward yourself for your weight loss progress, you should treat yourself for all your hard work toward financial goals. However, make sure your reward doesn’t undo all the effort you’ve put in so far.
#7 - Get Support
Every great transformation story includes support – a workout buddy, a fitness coach, an encouraging friend. Your financial journey should too!
Whether it’s a friend, family member, or one of our trusted Financial Advisors, having someone to encourage you, hold you accountable, and cheer you on can make all the difference.
There are many online communities and local groups you can join of like-minded people working to become debt-free. You can discuss challenges, share ideas, and support each other as you move toward achieving your financial goals.
We’re Here to Help!
You don’t get fit in a day – and you won’t become debt-free overnight. However, with the right plan, consistent effort, and a little support, you can lighten your financial load and feel more in control of your future. Taking the first step is the hardest and most important part of becoming debt-free. And we’re here to walk with you throughout the entire process.
If you want to learn more about debt consolidation or are curious how much you can save, we’re ready to help. Please stop by the Credit Union or call 410-687-5240 to schedule an appointment today.