With multiple and mounting debt, it can seem inconceivable that you will ever have it all paid off. You’re making tiny payments here and there: your student loan, your car loan, your mortgage, your credit card(s).
Of course, it’s always best to pay a little more than the minimums on each loan in order to minimize the amount of interest you’ll ultimately pay, and also in order to get the loans paid off faster.
But rather than paying a little extra on each loan each month, consider putting all your “extra” funds toward one of them, maybe even the smallest one.
Because paying off a loan—even if it’s your smallest, least looming loan—can give you the psychological boost of realizing that you’re capable of paying down your debt. It also helps simplify your debt situation. Less bills to pay each month feels (and is) more manageable.
Say you’re thinking of selling those heirloom diamond earrings you never wear anyway. Instead of spreading out the boon over all your credit cards, perhaps see if you can pay off the smallest one.
One day, you’ll find yourself debt-free.