I was listening to Dave Ramsey not too long ago and he said there is one thing that determines whether someone pays off her debt. Any guess what that is?
It was not her income. It was not the amount of her debt. Whether she had $5,000 of debt or $200,000 of debt did not matter. That’s worth repeating. The amount of debt a person has is not determinative as to whether she pays off her debt. Her savings, family support, and standard of living also did not matter. None of these things determined a person’s likelihood of paying off her debt. These things made it easier or more challenging, of course. But whether a person becomes debt free hinges on one thing and one thing only.
The one thing that determines whether a person gets out of debt, regardless of the amount, is whether the person believes she will get out of debt.
If you believe you will get out of debt, then you think it can happen and consequently, you do things to make it happen. You set goals, spend less, increase your income, and ultimately get out of debt.
If you think that you cannot get out of debt, then you will act in ways that support that thought. You’ll get further into debt at worst and at best you will just sustain your debt. No one gets out of debt thinking that it’s impossible.
This fact alone should be enough to persuade you to change your mindset to one that supports you becoming debt free. If thinking you can become debt free is the difference between getting out of debt and staying in debt, then why not adopt this mindset and at least try? It can’t hurt.
I graduated law school with $206,000 of student loan debt. I had no idea what that meant initially. Let me tell you that I quickly found out when my monthly online bill payment came due and my paychecks barely covered them!
While my amount of student loan debt is so massive, I never once thought I would be in it forever. I knew (and know) that I will pay off my debt. How fast would be (and is) up to me. Right now, I have
$152,000 $124,000 of student loan debt. In 2015, I am paying off $32,400 of my debt by paying $2,700 / month on my student loans. I am committing to living a frugal life while I make a really good income in order to get out of debt. By making paying off my debt my number one priority, I am putting into action the belief that I will become debt free. It is amazing what you can accomplish when you have a goal and a plan.
Whether you are in student loan debt or other debt, the best thing you can do for yourself is believe that you can get out of your debt. Having the mindset that it is up to you (and only you) to get out of debt is powerful and makes you become a victor (not a victim). It is essential that you take responsibility for your debt, get on a plan, and put your plan into action. Your debt is up to you. Start now. It was the best decision of my life, to date.
If you’re not sure where to start, try these posts: 1) 7 Obstacles to Wealth, 2) How Changing Your Money Blueprint Can Change Your Life, and 3) A 5-Step Guide to Setting Goals for Beginners.
With a little determination, faith, and learning you can change your financial circumstances and have the life you’ve always wanted.
A Final Note!
Motivation is a huge part of financial success. Your commitment and determination matter the most. It’s what will determine your success.
Practically speaking, I am getting out of debt, in part, by making money online. I’ve been so inspired by online entrepreneurs, and I’m following their lead. If you’re interested, I can help teach you how to start a blog using Bluehost and how to freelance write. Blogging and freelance writing are the two ways that I make money online.
And it all started by listening to Dave Ramsey’s podcast! 🙂