| It normally happens around the new year when people | | | | motivated throughout the repayment process? My |
| take a close, hard look at their finances and decide | | | | having a schedule in place, you will not only be able to |
| that they need to figure out a way to repay debt. | | | | see that every small step forward actually brings you |
| They often decide at this time that they can make | | | | to the end result of being debt-free, but it will allow you |
| some fairly substantial financial sacrifices in order to | | | | to see just how realistic your plan is in the first place. |
| establish and maintain a relatively aggressive debt | | | | 3. How can I automated the debt repayment process |
| repayment plan. Then, anywhere from a few weeks | | | | so that it aligns with my paycheck periods? This is |
| to a few months into their repayment plan, they realize | | | | probably one of the most overlooked tips when it |
| they cannot sustain such an aggressive approach. | | | | comes to debt repayment. However, by automating |
| Here are three things you should make sure that your | | | | your debt repayment process, not only will not "feel" |
| plan incorporates. This will allow you to improve the | | | | the crunch as much (because you won't be writing the |
| probability of success with your plan. | | | | checks or transferring the money yourself) but you will |
| 1. Does my plan allow me to indulge occasionally in | | | | become accustomed to the automatic transfer of the |
| some of the luxuries that got me into trouble in the first | | | | funds. This means that once your debt is paid off |
| place. Often, people will identify an area of their | | | | entirely, you can use all (or almost all) of those funds to |
| spending life that has put them in debt in the first place. | | | | start an aggressive savings program. |
| This could be impulsive clothing purchases, | | | | By making sure that you have incorporated these |
| unnecessary electronics purchases and so on. There | | | | three elements into your debt repayment program, you |
| is a reason for this -- you like these items. Make sure | | | | are automatically increasing the probability for success |
| your plan allows for occasional and moderate | | | | in achieving your goal. Without these three elements, |
| purchases of these items. Cutting them out of your life | | | | you will realize within the first half of the year that it is |
| entirely will never happen and, worse, can deflate your | | | | terribly easy to stray from your goal... and come the |
| motivation when you "fall off the wagon" and make | | | | end of the year, you will regret not sticking to it. |
| such a purchase. | | | | Allowing for modest indulgences, monitoring your |
| 2. Do I have a "forecast" schedule in place that will | | | | progress and automating your repayment plan will |
| allow me to measure my actual results and stay | | | | greatly improve your success rate. |