The Downside Of Paying Down Debt

Last month, we were able to pay down a very big chunk of student loan debt as a result of using a portion of our tax refund and a small inheritance that I received.

These were two decent size chunks of money, that when it added together, allowed us to eliminate about 25% of the student loan debt in one fell swoop!

That was awesome but as it turns out, there’s a (tiny) downside.

What could that be?

Well, it’s that it created such a ‘high’, that the return to normal debt payments is sort of a letdown.

This month, we paid off the normal amounts as is typical for a standard month. Because we paid off so much, we paid less interest and more towards principal, but overall, it just doesn’t generate the same rush.

So, the moral of the story is that while ordinary is good (and I’m not complaining), the rush generated by the bigger chunk payments is exhilarating.

All the more motivation to search for ways to find extra bucks.  For a drug addict, this would be bad because it would be ‘chasing the high’, but since we’re talking about debt payment, this is one rush that I don’t mind chasing!  Especially if it leads to us knocking chunks off our debt outside of the standard monthly payments.

6 thoughts on “The Downside Of Paying Down Debt”

  1. When I was snowballing, I had a number on my spreadsheet at the top that showed how much in interest I was paying every day. Just calculate that number before and after and you'll see that your payments are going a lot further now!!! It's really exciting, even if it isn't a big windfall.

  2. Just keep going! You can't walk a thousand miles until you take the first step, then a second, then a third… You can't pay off a huge pile of debt until you put a dollar toward it, then another, then another. Looking forward to seeing your debt free article very soon!

  3. I tracked my mortgage payments in a spreadsheet. Seeing it go down with each payment added a bit of monthly enjoyment to the paying down debt process!!!

  4. I'm ready to eliminate our CC debt by the end of next week with one big tax-refund-sponsored payment. It will be hard to see $1800 gone in one fell swoop, but having that "extra" money and not paying interest each month will be well worth it. I can see how for you it's a bit of a letdown to not continue making huge payments, but you're chipping away at it!

  5. That is the key, keeping it all on paper so you can actually see what you are saving by paying off a debt. And of course celebrating your success. It can be difficult seeing that big chunk of money go in one swoop but you just have to keep the long term goal in mind and celebrate your successes in search of that long term goal of being debt free.

  6. I know how you feel…twice a year my husband and I run into months where we get three paychecks instead of the typical two. Although that is nothing compared to the huge chunk that you ran into…it does make a difference to us those particular months…it always feels good to slap even more bucks onto that debt any chance you can. It is really a bummer when you think about, "what if I only had a little more money every month to apply to debt"…I suppose it's def a good thing to get a high from paying down debt tho- even if only once in a great great while because it keeps you motivated and like you said…always looking for ways to earn extra bucks! If you hadn't had received that nice boost, it would have kept you comfortable with how your debt payments were going, now you have a heightened awareness of just how fast something can be paid off when you have the money…Nice post.

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