Why you shouldn’t pay all of your debt off at once

When a former fitness client of mine (and friend) signed up for financial coaching I was ECSTATIC! I love her, I’ve always loved working with her. I knew it was going to be great.

On our first session, she showed up and had some great news!

She’d put $50 extra on a credit card and $50 extra on student loans! She looked at me expectantly.

At first, on the inside, this was my reaction.

As a coach, though, I knew that this was super important! It showed how motivated she was, which is absolutely priceless.


What I explained to her is that we want to always put extra on the smallest debt. Why? Because that allows us get the most bang for our buck (literally). You see, if we can knock out that first little debt, then we have more to put toward the next largest debt. And then the next one and the next one. That’s the snowball effect.

When we spread our money around, we make slow progress which is bound to cause us to fail. Why? Because we’re human! Seeing progress is what motivates us! When it’s a little here, a little there, you not only keep paying interest on each different type of debt, you never can throw larger sums at any one debt.

Becoming debt free is more about your behavior than your knowledge. It’s kind of like how you already know that you need to stop eating so much Chick Fil A. It’s kind of like you already know you should be exercising. It’s not about what you know, it’s about what you’re doing.

And what you’re doing needs to be strategic.

My client now has a strategic, month-by-month plan to be debt free by next September! That’s $12,710 in debt and she’s making just over double that. Yes, we have a plan! That’s what coaching can do for you.

I help you create a realistic budget (I know you’re still going to eat at chick fil a) and debt payoff plan. We look at the numbers together. Then, I help you until you are totally able and confident to do it on your own.

It’s that simple. Want to get started? Click up top right: work with me!

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