Don’t you love how when payday rolls around and you’re so excited to actually have a little cash in your pocket again?! And that feeling typically lasts for all of about 2.5 seconds until you realize you have things like bills to pay and debt to pay off. Welcome to the club friend. Phillip and I are no strangers to debt and are still dreaming of the day when we can say we’re debt free (we’re getting there, but it’s not happening tomorrow). I don’t know about you, but there are times when you’re looking at your total amount of debt that it can be so overwhelming, and start to feel like you’re not getting anywhere with paying it off! Yea, not a fun feeling! So when we started to get serious about our financial freedom, we knew we needed to start by getting organized to quickly pay off debt and start taking our paychecks back.
On Sunday evenings when Phillip and I sit down to go over our weekly finances, this is one of the first sheets we always look over. Our debt tracker allows us to keep track and physically see where we were at with our debt payment and what kind of progress we were making. It helped keep us organized and focused on our financial goals.
At the top of the sheet, there is general debt source information. Who are you paying? What is your total debt? What is your minimum payment?
Then the rest of the sheet allows you to keep track every time you make a payment, what your starting balance is, what you paid and then the remaining balance. This allows you to see every time you make a payment what kind of progress you’re making. Sure at first it may not feel like you’re making any at all. But after a few payments, you’ll be able to look back at where you’ve started and see you really are making strides towards financial freedom.
It may not work for everyone, but for our home, keeping our finances organized and documented in a way that we can physically see our progress is key to keeping us motivated. We may still have a ways to go, but at least we have proof in our hands that we’re getting there, and that’s exactly what we need to keep us going.
Want help getting your debt a bit more organized? Grab your own FREE debt tracker printable here!
Have you tried using a debt tracker before?! Love it? Hate it? What are your favorite ways to stay on top of your finances?