How To Get Your Family Excited About Becoming Debt Free
Did You Know?
The average American has $90,460 in debt.1
Now, you may be wondering "what is all their debt from?". The chart below shows you Americans' debt separated by categories.
Getting Your Family Excited About Becoming Debt Free
One of the most popular money goals people make every year is paying off their debt and with good reason.With so many Americans in debt, it's critical that you and your family work to pay off your debt ASAP.
Carrying high-interest debts like credit cards means seeing your balance take off quickly, even if you're making payments regularly. If you have a considerable amount of debt, your budget is tied up with it and can limit your options.
For most, it takes some big shifts in how they view their finances and budget to get rid of their debts. However, it's an even more significant challenge if your family isn't on board. So how can you win them over to join, and how can you all stay motivated?
I want to share some gems I received from a conversation with Toni Husbands about the ups and downs during their debt-free journey. She and her family paid over $109k of debt and she's the author of The Great Debt Dump.
While her husband Colin agreed they needed to get rid of the unnecessary debt they accumulated, he wasn't 100% behind the debt-free plan she created.
With some key changes, Toni was able to get the whole family involved, which helped them finally knock out their debt!
Lead By Example
Toni saw an opportunity to show Colin that they could still enjoy things as a family like museums, festivals, and movies while sticking to their new budget.
By discovering free and frugal options around their city, they didn't have to sacrifice quality family time, making Colin less hesitant about the plan.
Build Momentum
We all love seeing big wins, especially when we're dealing with a mountain of debt. In most cases, though, it's all about being consistent and improving bit by bit.
Toni looked at incremental changes with monthly expenses to test the waters. Then, as more money became available, she redirected it towards their debts.
Progress, Not Perfection
The path towards debt freedom wasn't always easy. "[We]would make progress and then something would happen, or a decision will be made and then maybe some more debt was, you know, so it was kind of a, it was a rollercoaster."
If you have a setback, step back and assess why it happened. Was it an unexpected expense that threw you off? Then, see if you need to bump up your emergency fund.
Is your budget too restrictive? You may want to include some buffer with your expenses.
Toni had a great take on how to approach it. "You haven't failed. It's just success in progress."
You may not be an overnight debt-free story, but as Toni pointed out, it's still worth it. With the debt gone, more opportunities can open for you. With Toni, she and her family explore investing in real estate and possible short-term rentals.
What would you love to do if you didn’t have any burdensome debts to pay? Use those dreams to keep you motivated as you work towards your goals!
Starting Your Debt-Free Journey
If paying off your debts is a goal you want to pursue, check out Coastal's resources, including their free webinars and workshops. You can also reach out to Coastal's Wealth Management team, available through CFS*, to help you craft a holistic financial plan that fits your priorities.
Consolidate Your Debt With Coastal's Help!
Use our calculator to see the benefits of consolidating your debt.
1. According to cnbc.com, 2021.
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CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.