Learn how setting a SMART goal can help you get debt relief by paying off debtSep 13, 2016
Setting financial goals now can help you prevent financial problems later. Whether your goal is to earn more money, pay off debt, increase your financial knowledge or reduce stress by seeking debt relief, having a clear goal in mind can help you achieve your desires. You’ll also want to make your goal a SMART goal—and no, that wasn’t a caps-lock malfunction. SMART goals are Specific, Measurable, Achievable, Relevant and Time-sensitive. Let’s take a look at how SMART goals can apply to debt relief:
“My SMART goal is to pay off $10,000 in debt over five years with a debt consolidation loan.”
- This goal is specific. You clearly stat what you want to accomplish (pay off debt) and how you’re going to do it (debt consolidation loan)
- This goal is measurable. You state how much debt you’re going to repay, and how long it will take you to do it.
- This goal is achievable. Paying off $10,000 in debt over five years seems like a reasonable time frame, requiring you to pay off $2,000 worth of debt each year. If you had set a goal to pay off $10,000 of debt in five months, that likely would not be achievable.
- This goal is relevant. You will want to examine why debt relief is important to you. Perhaps you would like to pay off debt so you could start saving for retirement, or put together a down payment on a house. It’s important to understand the motivations driving you to reach your SMART goal.
- This goal is time-sensitive. Simply stating “I will pay off $10,000 in debt” without giving yourself a time limit to do so is not a SMART goal. By setting a specific period to achieve debt relief, you are holding yourself accountable, and allowing for a certain amount of debt to be paid off each year.