Are you trying to pay off debt? If so, congratulations! Paying off debt is a huge accomplishment, and it can be life-changing. However, if you’re not careful, you can make some common mistakes that can slow down your progress or even stop it altogether.
Luckily, Your Debt Expert have shone a light on some of the most common mistakes people make when they are paying off debt. Alongside helping others start their journey towards becoming debt-free, Your Debt Expert provide advice and information on everything from debt collection to setting up an IVA.
Check out the top mistakes below.
1. Not starting early enough
One of the biggest mistakes people make when trying to pay off debt is waiting too long to start. The sooner you start, the better off you’ll be. Interest accrues on debt, so the longer you wait to start paying it off, the more you’ll end up paying in the long run. However, making debt repayment a priority can be difficult, especially if you’re already struggling to make ends meet. That’s why it’s important to get creative and come up with a debt repayment plan that works for you.
2. Not making enough headway each month
Another common mistake people make is not paying enough towards their debt each month. A good rule of thumb is to try and pay double the minimum payment, but even if you can only afford to pay a little bit more, it will make a difference over time. debt snowball method, where you focus on paying off your smallest debt first and then move on to the next one. This can help you stay motivated and see progress each month, which can be key to keeping debt repayment a priority.
3. Not having a debt repayment plan
One of the most important things you can do when trying to pay off debt is to create a debt repayment plan. This will help you stay on track and make debt repayment a priority. Without a plan, it’s easy to get sidetracked and give up on your debt repayment goals. There are many different debt repayment methods out there, so find one that works for you and stick to it.
4. Not tracking your progress
Another common mistake people make is not tracking their progress. It’s important to know how much debt you’ve paid off and how much you have left to go. This information can help keep you motivated and on track. There are many different ways to track your debt repayment progress, so find one that works for you and use it regularly.
5. Not making extra payments
If you have the opportunity to make extra payments towards your debt, take advantage of it. Any extra money you can put towards debt will help reduce the amount you owe and shorten the repayment timeline. If you get a bonus at work or a tax refund, consider using that money to make an extra debt payment.
6. Not negotiating for lower interest rates
One way to save money on debt repayment is to negotiate for lower interest rates. This can be done by calling your creditors and asking for a lower rate. If you have good credit, you may be able to get a lower rate simply by threatening to take your business elsewhere. It’s always worth trying to negotiate, as even a small reduction in interest rates can save you money over time.
7. Not consolidating debt
If you have multiple debts with different interest rates, it can be helpful to consolidate them into one debt with a lower interest rate. This can save you money on interest and make debt repayment easier. There are many different ways to consolidate debt, so find one that works for you and get started.
8. Not staying motivated
One of the biggest mistakes people make when trying to pay off debt is not staying motivated. It’s easy to get discouraged when you’re in debt, but it’s important to keep your eye on the prize and remember that debt freedom is possible. There are many different ways to stay motivated during debt repayment, so find what works for you and stick with it. debt repayment is possible if you’re willing to make it a priority. By avoiding these common mistakes, you’ll be on your way to debt freedom in no time.
Debt repayment is a process that requires time, effort, and dedication. However, by avoiding these common mistakes, you can make debt repayment a priority and achieve your debt freedom goals.
I am debt free for the first time in my entire life and it feels so wonderful! We used to flip houses until the crash in 2008 and we lost basically everything. And it’s taken this long to finally get our home paid for along with the other debt. Great post and I hope others follow your suggestions.
You have some great advice here. I always try to pay extra when I can. I hate being in debt! Our only debt at the moment is the house.
So important to stay on top of it and it you can, pay it off early1
This is very useful advice. I paid off my mortgage in 2019 and it is great to be debt free
This is some really good advice. I think it’s very important to be careful when it comes to debt. It always sucks to be in debt. I believe the only debt I have is for my house and car, and thankfully my car is just about paid off.
Paying off debt is indeed a tough journey one can go through. I know this because I’ve been paying off debt and I think starting early is really important. Stay motivated and don`t give up. You will get to your last payment.
What a really great advice you have here. Iām surely gonna keep this in mind! Thanks!
We are debt free and only pay cash for what we want / need. My husband recently retired and our dream was to be debt free!
Six through eight can be a few of the hardest ones to follow, too!
This is all useful advice. Making extra payments can really help. I try to do this as and when I can to clear debts faster.
Thank you for this informative post, you have given useful advice, I have been debt free for most of my life as well. thanks for sharing
These are great tips to help be debt free! It is overwhelming to have a lot of debt, especially as a young adult. My kids all have pretty big student loans and working to pay those off.
Such great advice! Anyone who is currently trying to pay off debt will find this article super useful š.