The Secret to Pay Off Six-Figure Debt

A massive debt amount feels absolutely crushing.  In 2015, I was staring at $500,000 of debt. You read that right, half a million dollars.  It was paralyzing. Through trial and error, I have realized the biggest mistake I made for the first year and a half of my debt payoff journey.  This led to the discovery of the secret to pay off six-figure debt!

This mistake I was making is the key to pay off six-figure debt.  If you can do this one thing, you can absolutely accomplish it.

So what is it?

A simple mindset shift.  The likelihood of you actually getting out of debt when you are staring at six-figures or more, is 80% related to your behavior.  And guess what? Your mind controls your behavior. This means you had better have really good control of your mind or you definitely are not getting out of debt.

When you are looking at trying to get out of debt as fast as humanly possible, but it is six-figure debt that realistically may take you 4-7 years, it can feel super overwhelming.  Like me, you may initially be insanely motivated and start living super frugally.

This behavior can only last so long though, especially if you aren’t seeing that needle move substantial amounts very quickly.

To pay off debt, we know we need to:

• Budget
• Use a debt payoff plan (snowball vs. avalanche)
• Decrease expenses
• Increase income
• Stay motivated

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But what is the actual secret to making you successful with the six-figure debt payoff that feels like it is going to take an eternity?

You have to have a mindset shift.

The secret to six-figure debt payoff is to believe that every single extra penny is going to move you closer to becoming debt free.  No amount of money you put towards your payoff is inconsequential.

This is key.

When I first started trying to pay off debt:

• I had no kids
• I was newly married
• I had minimal expenses
• My husband had a good job
• I had a bunch of stuff to sell
• I had whole life insurance policies to cash in

We made pretty quick headway with our debt at the beginning which was super motivating.

About 3 years in, our life picture looked completely different:

• We had two children
• Increased expenses (including childcare which is freaking robbery)
• My husband had left his job and was barely working
• I had nothing left to sell and no way to make quick cash

When we stopped having these large chunks of money to throw at our debt every month, we kind of gave up.

I didn’t even realize it at the time because it all kind of happened so gradually.  But, it was like we decided, if we can’t throw thousands at our debt every month, there is no point to even trying.

We didn’t pay off any debt for 6 months with this mindset.

The secret mindset shift you need to have to pay off six-figure debt:

Every single penny you put toward your debt is making a difference.  The debt will be paid off little by little. Every dollar is a step forward.  Every overpayment you make is moving you toward financial freedom.

Right now it looks like six-figures, but soon it will be five-figures, then four-figure, and then it will be gone.  Putting an extra $100 toward debt payoff is just as important as putting $1,000.

If you wait until you can throw huge chunks of money at your debt, like $5,000-$10,000 a month, you are never going to get out of debt.

This is the key!

It isn’t about the large payoffs, it’s in the daily pennies you are saving over and over and over.  All of these small amounts you are putting toward your debt, consistently, are what will pay it off and give you freedom.

Don’t fall into the trap of, “I can only get out of debt if I can pay off thousands every month.”

If you can pay off thousands every month, sure, that’s great.  But, the point is, you have to know that every dollar, every penny you choose to put toward your debt payoff is not inconsequential.  It matters and it is moving you closer toward financial freedom.

You have to believe that and you have to demonstrate that with your actions.

When my husband and I got in the mindset of thinking we needed huge chunks to throw at our debt to make a dent, it was super discouraging when we couldn’t do that.  This made us give up entirely.

Don’t let that happen to you.  It doesn’t matter how much you are putting toward your debt every month.  What matters is, you are focused on putting every extra dollar toward your future financial freedom.

At first, it will look like six-figures of debt, then it will be five-figures, then it will be four-figures and then it will be gone.  Don’t fall into the trap of thinking small amounts don’t matter. They absolutely do.

Related Post:

A Real Six-Figure Debt Payoff Journey:  How This Couple Paid Off $266,000 in Seven Years

Are you facing six-figure debt that is crushing you?  You can absolutely conquer it. You just need to believe and act on the fact that every penny you put toward your debt matters.  Every small step is moving you forward to financial freedom.

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