Getting Out of Debt Takes More Than Earning More
When debt feels overwhelming, it can be easy to think the solution is simply making more money. But earning more doesn’t automatically change the habits that created the debt in the first place.
In a recent WAVE 3 News Make Ends Meet feature, BookSmarts founder and CEO Jenny Groberg shared practical strategies for paying down debt and building habits that can help people stay out of it. She also shared her own experience of paying off student loans with her husband in about two and a half years.
Start With the Choices You Can Control
Jenny and her husband made paying off their student loans a priority. As their income increased, the extra money went toward their debt instead of upgrading their lifestyle.
That meant keeping their cars, skipping unnecessary extras, and focusing on their bills.
It wasn’t necessarily the easiest choice, but it allowed them to make meaningful progress much faster than stretching their student loan payments over many years.
Know Where Your Money Is Going
If you want to get out of debt, you need a clear picture of what is coming in and what is going out.
Jenny recommends having a budget and tracking what you actually spend. She also emphasizes understanding the difference between needs and wants.
A budget may feel restrictive at first, but it gives you information. Once you know where your money is going, you can make more intentional decisions about what to keep, what to cut, and what can go toward paying down debt.
Keep the Long Game in Mind
Paying off debt takes time, which makes it important to remember why you started.
Jenny suggests tracking your progress and finding ways to keep your goal visible. That might be as simple as regularly checking your balances or creating a vision board that reminds you what financial freedom could make possible.
She also recommends paying yourself first. Getting rid of debt is important, but saving should still be part of the bigger financial picture.
Be Careful With Comparison
Sometimes the pressure to spend doesn’t come from what we actually need. It comes from seeing what everyone else appears to have.
Social media can make that harder. Someone else’s new house, car, vacation, or purchase can quickly make you feel like you should have the same thing.
Jenny points out that social media only shows part of the picture. Comparing your financial life to what someone chooses to share online can lead to spending decisions that have nothing to do with your own priorities.
Build Habits That Last Beyond the Debt
Paying off the final balance is a major accomplishment, but staying out of debt requires many of the same habits that helped you get there.
Know where your money is going. Spend according to your priorities. Save for the future. And when your income increases, think about what you want that additional money to accomplish before automatically increasing your spending.
Getting out of debt isn’t about doing everything perfectly. It’s about making intentional financial choices consistently enough to move toward the life you want.
Jenny shares more of her personal experience and practical tips for paying down debt in the full WAVE 3 News Make Ends Meet feature.
Read the full feature: Make Ends Meet: How to get out and stay out of debt.
Read Jenny Groberg’s full feature on WAVE 3 News:
WAVE 3 News – Make Ends Meet: How to Get Out and Stay Out of Debt
