If you’ve been following this blog since the very beginning, get ready to see a shift. My entire mindset has changed around money, and to get even more specific – debt. A couple of years ago, I was listening to financial gurus that said things like, “Debt is the devil. Cash is king. Debt is dumb…” The list goes on and on.
In one of my first posts, I wrote that my six-figure student loan debt was like a dark cloud looming over me. I felt guilty for getting into that much debt and often regretted attending my dream college. I had so many negative emotions around debt and the decisions that got me there.
However, over the past year, I have learned that debt itself is not a bad thing. Contrary to what many personal finance experts are teaching, having debt does not mean that you have done something wrong. I’m not saying to go on a shopping spree and #treatyoself 24/7. I’m just saying that the only time having debt is a negative thing is if you are not willing and actively working to pay it back.
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How to Manifest Your Way Out of Debt
By calling debt “evil,” we allow it to create blocks in our lives that prevent us from achieving our true potential. Words are powerful – we have to be careful not to speak curses over ourselves without even realizing it.
Obviously, no one wants to allow debt to hold them back from becoming financially free, traveling, buying a home, starting a family, etc. But take a minute to think about why you got into debt in the first place.
Did you go to college? Did you invest in property? Or did you start a business? Did you put groceries on a credit card to feed your kids?
Despite what you may have heard, I’m willing to bet that every wealthy person you admire once leveraged debt at some point in their lives.
SO WHAT if you are in debt? Investing in yourself helps you become a more successful version of yourself. Investing in experiences (college, travel, courses, etc.) allows you to someday bring value to others.
No matter the type of debt you have, I’m going to show you how to pay it off using the Law of Attraction.
Don’t roll your eyes at me – I get it. I’ve always been a very spiritual person but was still a little suspicious of these principles at first. However, in the past year, I’ve seen incredible things happen in my life that I could have never imagined. I’m living proof that it works.
So, let’s get started with 4 tips to manifest your way out of debt.
#1: Stop calling it debt
When you hear the word, “debt,” do you feel positive or negative emotions towards it? Negative! At the time you took out that loan or swiped your credit card, you were doing the best you could with the resources you had available. Have some compassion and forgive yourself. Seeing debt as a bad thing only creates more resentment, negativity, and frustration.
The biggest lesson I have learned over the past year is that the language you use not only determines your reality, but it creates it. Your subconscious mind also cannot process negatives. When you say you want to be debt-free, your subconscious mind only hears “debt.” Therefore, by focusing on debt, you create more debt.
Don’t believe me? How many times have you said, “ugh, I can’t be late,” and then you were late? Your subconscious mind only heard, “late.” By focusing on being late, you created that in your reality.
Instead of saying that I want to be debt-free, I choose to say that I am financially-free (present tense). Instead of saying I want to pay off my $5,000 student loan debt, I say, “I now have a $0 balance on my student loan.”
The word debt is no longer part of my vocabulary. Instead of experiencing those negative emotions I mentioned earlier, I feel grateful for the companies that leveraged money to help me get to where I am today.
That leads me to my next tip…
#2: Start seeing it as a blessing
Let’s go back to why you leveraged this money in the first place. If the bank/federal government had not loaned me money, I would not have been able to attend college and earn my Bachelor’s and Master’s degrees. That means I would not have gotten my current job because it requires a college degree. If I didn’t have my current job, I wouldn’t have as nice of a lifestyle.
More importantly, if I had not leveraged that money, I may not have learned how to manage my money and take responsibility for my financial decisions (or at least at such a young age). I also wouldn’t be here helping other people do the same thing.
Despite how challenging things seem right now, be grateful for the moment you’re in because it is preparing you for something great. When you submit your monthly payment, take a moment to feel grateful that you have the income to do so.
If you’re really in your feels (or want to be), write a mock letter to your bank or loan provider. Thank those companies for giving you the money and explain how it has since blessed your life. Sometimes we don’t realize how truly blessed we are until we sit down and write out everything we have.
#3: Put energy into it
You knew this one was coming – make your payments! We cannot expect bills to magically disappear if we’re not putting in any effort. When you start putting your energy into it, God / the universe (whatever you believe) will help multiply it.
In addition to making your minimum monthly payment, challenge yourself to add an extra payment each month. Anytime you receive unexpected money, put at least 50% of it towards that leveraged money.
By taking responsibility for your finances, you are taking control of your life. You can’t manage what you don’t measure. Therefore, you should always know your numbers. Now is not the time to put the blindfold on and guess how much you have to pay back.
I have been using Personal Capital for over 3 years. I like it because you can track your net worth and see all of your accounts (loans, credit cards, 401K, etc.) in one place.
Not sure what to pay off first? A while back I explained the difference between the Debt Snowball and Debt Avalanche methods. I’m currently using a hybrid approach and recommend it for anyone with high-interest credit card debt.
Here’s how it works: I pay the minimum on everything – car loan, student loans, credit cards, etc. I throw an extra payment at the credit card with the highest interest rate (Debt Avalanche). Once my credit cards are paid off, I’ll switch back to the Debt Snowball method. That means I’ll throw an extra payment towards the student loan with the lowest balance.
#4: Follow creative ideas and nudges
Let go of your need to see results right now. Don’t worry about how it’s going to be paid off, just know that it is already done. God will give you creative ideas for how you can increase your income. Stay open and ready to receive them.
My creative nudge was to start a business helping other people achieve financial freedom. God knew that it would be a channel I could use to increase my income and impact the lives of others. I took inspired action and acted on faith, which in turn brought me more income. I’ll be able to pay off my leveraged money way faster than I could have imagined.
How To Work Your Way Out Of Debt
Many people dream of paying off debt faster, but how? First, write down your short and long term goals. Why do you want to pay off your debt? How will becoming financially free impact your life? Visualize the version of yourself with a $0 balance on your credit cards or mortgage. This journey will be challenging at times. When you feel like throwing in the towel, it’s important to reflect on why you started in the first place.
Next, prioritize building an emergency fund before you get “gazelle intense” on paying off your debt, as Dave Ramsey calls it. It’s important to save money for emergencies because when they occur, you could easily use your credit card and be stuck in a vicious cycle of playing catch up. Instead, use extra money from your emergency fund to cover any mishaps or unexpected bills.
I recommend keeping your emergency fund in an online, high yield savings account or at a credit union. Keeping it at a separate bank makes it a bit more challenging for you to dip into it with every minor inconvenience.
Once you’ve set your goals and built an emergency fund, it’s time to create a debt management strategy. If you are motivated by seeing quick wins, I recommend following the Debt Snowball method. You will list all of your debts from smallest amount to largest amount, regardless of the interest rate. Most people do not include their mortgages in this list, but you should at least include all credit cards, personal loans, student loans, car loans, etc.
Pay the minimum payment amount on all of the accounts on top so that your credit score is not negatively impacted. Whenever you get extra cash, throw that “snowball” at the bill with the lowest balance. Eventually, you’ll pay that account off, and can add its minimum payment to your snowball. As you pay off more and more accounts, your snowball will grow larger and larger. Therefore, you will pay off your debt faster.
How can you accelerate your debt payoff strategy even more? First, contact your credit card company and ask for a reduced interest rate. Even if they only decrease it by a couple of percentage points, it will save you money in the long run. Next, be mindful of where you’re spending money. Are you paying for subscription services that you no longer use? Do you eat out for every meal? Consider cutting some of those extra expenses.
Lastly, find ways to make extra money. You can only cut back so much. However, your income potential is truly unlimited. The more money you make each month, the bigger the snowball you’re able to throw at your debt. Before you know it, it will all be gone!
Final Thoughts on How to Manifest Your Way Out of Debt
Take time out of every day to visualize the finished outcome of your desire. Truly FEEL what it would be like to pay off your student loans or credit card. How joyful would you be? What would you do?
I created a “High Vibes” playlist on Spotify that is filled with songs about money (and being a BA woman) that make me happy and feel empowered. Anytime I feel “off” or whenever I want to visualize being financially-free, I turn it up and dance around my apartment. Figure out what works for you and run with it!
I can’t wait to hear how these tips help you manifest your way out of debt this year! If you have any other tips, feel free to share them in the comments below.