Tips to stay motivated while paying off debt

OWNING a credit card can be a great financial tool as you earn cash back, reward points, air miles, and even exclusive gift offers.

But when it lands you in financial trouble and potentially, bankruptcy, that’s a problem.

Malaysians are in dire need of long-term financial planning.

In the first half of 2017, a total of 845 Malaysians aged 30 and above were declared bankrupt due to unpaid credit card bills?

On a larger scale, 294,000 Malaysians (the majority of them aged 35 to 45) are currently facing bankrupt cases due to their failure to settle credit card bills and loans.

Ensuring you practise healthy financial habits will help you succeed throughout your life journey – from your first job to your first home, as you start a family and when you retire and beyond.

With that in mind, here are tips to help you stay motivated as you pay off your debt.

Find an accountability partner:


This is someone you are accountable to. He/she will help you stay on track.

You need to be able to trust this person and it should be someone you have no issue being financially transparent with.

Once you start telling people, you are more likely to succeed because you wouldn’t want to let your partner down.

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Have a visual countdown:

You know when you’re counting down to an exciting event and it helps to see the days go by? Do the same thing with your debt. Watch your debt amount go down.

Use the debt snowball method: If you have multiple credit cards, focus on paying off the card with the smallest balance first.

You’ll achieve a sense of accomplishment and it makes your debt repayment plan more manageable.

Have a vision board:

Remind yourself of the purpose of these short-term sacrifices for long-term gains. A cruise around the Greece islands? Saving up for your kid’s education? Planning a debt-free retirement?

Use 0% balance transfer plans:

This basically means you transfer your credit card balance to a different bank at 0% interest for a limited time period. Compare their benefits on before you choose the best one.

Sell things on Carousell for extra money:

When paying off your debt, a portion of your hard-earned income will disappear. Get onto Carousell or and sell items you no longer need. Think of ways to earn more money.

Reduce your lifestyle expenses:

Remember, you can’t get out of debt by continuing the same lifestyle. Cut out everything except the basic necessities.

Keep learning:

Don’t punish yourself too harshly. Debt happens to all of us. The key lesson is you continue to learn from your mistakes, spending patterns, and financial appetite. Keep putting these lessons into practice.

Practise gratitude and give to the less fortunate: Spend your time on soul enriching activities. Volunteer your time with those less fortunate and you’ll realise, you have plenty to be grateful for.

Your obligations are not going to disappear overnight but the key here is to never give up.

It may take you years to finally be debt-free or on top of your repayments, but those who succeed persist through the challenges.

I’ll leave you with this quote: “Debt is the slavery of the free”- Publilius Syrus.

Nadia Khan is content manager of dedicated to increasing financial literacy and to help you save time and money by comparing all credit cards, personal loans and broadband plans in Malaysia.
Source :-The Star


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