Debt Reduction, Money Management

What Works For Me – Debt Reduction Mindset

There are thousands of websites and hundreds of books about debt reduction and debt reduction techniques.  Personally, I’ve written several articles about my own debt reduction journey, a comprehensive guide covering how to get out of debt, and I’ve even created my own personal debt reduction method.

Today, I thought it might be beneficial to look beyond the methods and techniques, and really think about what keeps a debt reducer motivated.

What Works For Me – Debt Reduction Mindset

I like to keep things simple, so I like to focus on one debt at a time.  After listing my debts, and paying minimums to all creditors, I then spend my time trying to reduce the balance of the first account on my list.  As soon as I eliminate the first account, I’m pumped to move to the second account.  Focusing really helps.

I think it’s important to build community around a goal.  I like for my wife and I to be on the same team, and of one mind.  In fact, it would have been impossible for us to get out of debt, if my wife and I had not learned to communicate and work together.  We also surrounded ourselves with positive people and friends who would not cause us to stumble.

I find that I need to set an example of restraint and frugality.  It’s relatively easy to create a budget.  It’s a far more difficult thing to stick to a budget.  As a parent, I know that my kids are looking to me for advice, encouragement, and wisdom.  The sacrifices that I make today will pay big dividends in the future.

I have learned to eliminate the noise and listen to just a few, trusted voices.  Instead of trying fifteen different debt reduction techniques, or looking for a quick fix to my debt problem, I sat down, created a plan, and followed the plan.  I never pay attention to gimmicks and get-out-of-debt quick schemes.  Instead, I focus on paying the bills that I owe and following the plan that I have created.

I celebrate every success, big or small.  My wife and I have learned to celebrate our financial successes – without spending a lot of money.  We enjoy a date night or take the kids out for a day at the park.  I make a big deal out of our goals – and an even bigger deal when we achieve them.

I admit that I am human.  Here’s the reality.  Even though thousands of people visit my site each month (which blows my mind), I’m still prone to the occasional mistake.  When dealing with a setback, it’s important that I regroup, remember why I started the process in the first place, and move forward.  Even when I missed my original debt reduction goal date, I kept going.

What About You? –

I’d love to hear from you, my awesome readers.  What keeps you motivated?  What steps have you taken to keep your mind in the game?  Have you slacked off, but decided to get going as of today?  Leave comments here and / or connect with me via Twitter.

3 thoughts on “What Works For Me – Debt Reduction Mindset

  1. NCN,

    For me, this type of post is the best advice anyone could get on the issue. All the methods, models, tips, programs, plans, etc… in the world don’t compare to genuine “trial-and-error” advice.

    I too have created a method of debt reduction that I, personally, can be very passionate about. Even though the “Debt Tsunami” has helped me tremendously it’s the less tangible things like setting restraints, cutting through the noise, and admitting I am human that have had the largest impact.

    I loved it!

  2. Your way was my way of paying off $17,000 of debt.
    It is so liberating to ( save up and ) pay for a major purchase or to have workers come to the house, do work and be able to pay them without worries.

  3. This is a great post on how to get motivated and stay motivated on debt reduction. This type of article is much more inspiring than many of the tactical types. I work for a debt settlement company and the most difficult part is getting someone motivated enough to walk in the door and face their debt problems. Thanks for writing this, I hope it inspires many people to start tackling their debt.

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