Heeeeey! Great question.
Rewarding yourself is essential to maintaining your financial discipline. BUT, I challenge you to build your "reward" money into your budget. (more about that later)
This is how I would handle my debt: Roll over the money you were paying to the 'paid-off loan', onto the payment you're paying a current loan.
Let's say you were paying $300 to a car that's now paid off. I would add that $300 to the next debt on your list. If the next debt is a credit card that you usually pay $100/month, now give it the old car payment too ($300). You're use to paying it, so you won't miss it. Now your credit card will get $400 ($300 car payment + $100 credit card payment)
Once the credit card is paid off, roll over the $400 to the next debt. Keep doing this until your debt free.
Back to rewarding yourself....
Include reward money into your budget like a bill. I set aside a percentage of my income for travel (that's my reward). You may want to set aside a specific amount each pay period to a savings account as a reward. When you collect enough money for what you want, splurge without guilt.
Live richer,
The Budgetnista
www.livericherchallenge.com <--my new, free, financial resource for women.
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