Paying Down Debt is like Losing Weight

admin | January 15, 2014

Ugh…This may not be the most encouraging comparison, but it is an appropriate one. How many of us have tried unsuccessfully to lose weight. Probably many of us. If you’re like most people, you believe losing weight can only be attained through a crash diet and a whole lot of suffering. Unfortunately, many have the same viewpoint when it comes to paying down their debt.

The problem with losing weight is a mental one. People expect to go on a diet for a limited period of time until they reach their desired weight. Then they plan to quit the diet with the hopes of maintaining that ideal weight. Only it doesn’t work that way. Losing weight requires a lifestyle change, not a short term diet.

Getting out of debt works much the same way.

If asked, most of us would say that the key to getting out of debt is to make a budget and stick to it, applying the excess money to pay down our debt. This is a good plan, but without changing your viewpoint towards money you likely won’t last too long. It’s the same with dieting. We might know what it takes to lose the weight but if we are only committed to a short term fix then we’re essentially doomed to failure.

However, viewing it as a lifestyle change offers up a whole different set of results. If you change your lifestyle to where you eat healthier and exercise, then the weight will come off as a byproduct of your new commitment to being healthier. You will still have goals, but the idea of a diet with its requisite sacrifices will never come into your mind.

If we view our new commitment to getting out of debt with a diet mentality, then we will view the process as a series of sacrifices and self-denial. We may succeed in the short term and see some initial results, but we’ll never be able to maintain such an outlook over time. Really, how many people do you know that say they have been on a weight loss diet for ten years? None. It’s a short term fix.

On the other hand, if we make a commitment to a lifestyle change, we look at our progress over the long haul. Debt is just like weight. Normally, we don’t suddenly become deep in debt, just as we don’t suddenly gain a lot of weight. It is a process that happens over time. To correct it, we have to commit to the long haul. Following are some strategies to keep in mind if we are to pay down our debt.

Realize it’s going to be a slow process. Be prepared to stay the course for the long haul, like three to five years or more. Set mini goals along the way to paying off all your debt.

Give yourself a kick start if you feel your momentum slowing down. If your efforts to save seem to be grinding to a halt, find a way to boost your efforts. Sell something you don’t see as necessary or earn an extra bit of money that can go against your debt.

Draw up some goals. Along with putting pencil to paper for a budget, set some realistic goals that you can achieve and celebrate them. Splurge a little. If you’ve sworn off eating out, spoil yourself with a dinner out.

Consider your options. Look at your options for getting out of debt quicker. If you are paying interest on a variety of credit cards it may pay off to explore various debt relief programs.

Surround yourself with like-minded individuals. We all need motivation, and we can get it from the example of others. Read up on the success stories of others that have successfully paid off their debt. Follow personal finance blogs and look for strategies you can apply.

Keep your eyes on the prize. Visualize what it will be like to be debt free. Think about how you’ll feel when your debt is paid off. By keeping your focus on the long term, the obstacles in your path won’t seem insurmountable.

Gale Newell has been in the collection industry for most of her career and often writes about debt reduction and personal finance.