Rewards For Reducing Debt (Your Advice)

Your Advice - help answer readers' questionsWhen reducing debt, one of the problems is getting frustrated that you can never have any fun while doing it. One way to help keep yourself motivated is to give yourself rewards for reaching specific goals. This reader wants to know how to go about setting up these rewards:

I have started to reduce my credit card debt and although it has been difficult, I am slowly getting it under control. Some people talk about rewarding yourself while reducing debt:

  • How does one go about doing this?
  • How do you choose a reward?
  • Should it be a lot of small rewards or a big reward at the end?
  • How do you determine what is appropriate as a reward?

I apologize for all the questions, but this is something that I would like to begin doing and I’m afraid if I start without a plan, the rewards will end up putting me back into debt.

how do you reward yourself when it comes to money goals you have and what recommendations would you give to this reader?

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6 Responses to Rewards For Reducing Debt (Your Advice)

  1. Kitty says:

    Start small. Make a list of little things that you have denied yourself while in debt. Bath soaps, magazines, candles, movies, buying stationary, Chinese food, pizza. Purchase with cash one thing a week to start. You will enjoy it because it’s a treat and paid for!
    [b]How do you choose a reward?[/b] Look at your list and choose something that will make you feel good; a little luxury for yourself. Then take the time to enjoy it; don’t put the bubble bath away, soak away and remind yourself of how well you are doing!
    [b]Should it be a lot of small rewards or a big reward at the end?[/b] Both. Do the small rewards while you are starting and plan for the big one at the end. Write down what it would be and the cost, etc, divide the cost by the time and see if you can put that little bit away.
    [b]How do you determine what is appropriate as a reward?[/b] An appropriate reward is something that satisfies a need, doesn’t blow the budget, and leaves you feeling good. Some people like makeup things, some people like a movie with popcorn. Complete deprivation usually backfires on you and you can end up going on a binge.

    The few little things that you safely reward yourself with will not only make you feel better and a little pampered, but will help you feel proud about what you are doing. Good luck and have a little fun!

  2. Amber Yount says:

    Currently, since me and my husband have large balances on creedit cards, I’ve decided that we’ll reward ourselves with each credit card we pay off. Our big reward-a week long carribean cruise, we’ll be after we pay off all our credit cards (and in cash too!)

  3. Jeremy says:

    I agree with the first comment. Make a list of little things that would make yourself enjoy the day just a little bit. Small things such as maybe going to get an icecream cone from your local store, a magazine that you wouldn’t normally spend money on because you would rather put it toward your reduction. Splurge a little bit on yourself. Determining what is appropriate as an award should be something you decide because someone like me would be happy with renting a video game and I would consider that a worthy award. Rewarding yourself doesn’t have to cost an arm and a leg, a new CD or for me especially maybe buy a new cleaner for my car. I personally am in your situation now and I went bowling with friends. I don’t usually go out but that really made me lighten up and satisfied me.

    I hope our comments help, let me know if you need any more suggestions I am more than willing to help. Good luck with the debt reduction.. Work in small steps and you will knock it out.

  4. dan says:

    Make sure to pick rewards that will motivate you – creatively choosing rewards can really help through the times you want to give up.

  5. Pingback: Personal Finance Isn’t Rocket Science, It’s Self Motivation - Blog

  6. Luisa Rijo says:

    I agree it’s important to stay positive and motivated.

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