Get Out of Debt

There is debt that feels good and debt that feels bad.

Some debt can feel good… like buying your first house.

The pride of ownership and knowing that your monthly payments are going towards owning a home rather than renting feels really good.

Good feeling debt is also debt that you are fully aware of.

You know the numbers.

You are glad when that bill comes because you are happy to pay for the thing or service you got.

I am so happy to pay for my son’s surgery. I would pay ten times what it cost us to have him alive and well.

Good feeling debt feels good both that you own this glorious thing and good when you think about making the payment.

All sorts of good.

Then there’s bad debt.

Bad debt can be tricky.

Debt that feels bad may feel good at first.

Like the rush of excitement when you buy a car impulsively.

You just went in to look and you ride out with keys and a contract.

Woo hoo!

But then that rush of dopamine and adrenaline begins to drain out of your body and it doesn’t feel so great.

You don’t feel so good about the purchase because it’s something that doesn’t bring you sustained joy.

Or bad debt can feel badly when you start making payments and you have to give up other things you love.

The first step to getting out of debt is to, from this day forward, only take on good feeling debt.

Turn off the faucet of debt regret.

Then be truthful about the debt you already carry

and forgive yourself for being in debt.

If you think you made a money mistake, own that. Be ok with taking a loss if that helps you pay off the debt. That’s telling yourself the truth.

That’s being an emotional adult.

There are a lot of ways to pay off your debt, but if you 

• Don’t take on new bad debt, 
• Face the debt you have by tell yourself the truth and 
• Treat yourself compassionately, 

you have set the stage for financial wellbeing.