How to Get Out of a Lot of Debt (Without Completely Hating Your Life)
You know that moment when you check your bank balance and immediately regret every life decision that led you here? Yeah. Been there. More than once.
If you’re staring down a mountain of debt and wondering how on earth you’re supposed to climb out—especially when life keeps tossing you new expenses like some kind of financial dodgeball game—I’m here to tell you two things:
- You are not alone.
- You are not doomed.
Debt isn’t just numbers on a spreadsheet. It’s math wrapped in emotion, dressed up in guilt, sprinkled with stress, and occasionally deep-fried in shame. But here’s the thing—shame has never paid off a single credit card. So let’s ditch it and focus on what actually works.
Step 1: Forget Traditional Budgets (Seriously)
I know, I know. Everyone and their great-aunt Gertrude says you need a budget. But guess what? Traditional budgets are about as effective as trying to lose weight by just thinking really hard about vegetables.
Instead, spend a month tracking what you’re already spending—without judgment. Just gather the data, like a detective solving the Case of the Disappearing Paycheck. Once you see where your money actually goes, you can build a spending plan that works with your life instead of against it.
Step 2: Find Your Biggest Money Leaks
Once you have the data, look for the “Wait, what?” expenses. That gym membership you never use. The subscription for an app you signed up for during a free trial and forgot about. The daily coffee habit that’s costing you more than your internet bill.
You don’t have to eliminate all fun spending (we’re not monsters). But tightening up a few of these leaks can free up money to attack your debt without making you feel like you’re living in a financial prison.
Step 3: Pick a Payoff Strategy That Doesn’t Make You Miserable
There are two main ways to pay off debt:
- The Snowball Method: Pay off your smallest debt first for a quick psychological win, then roll that payment into the next one.
- The Avalanche Method: Pay off the debt with the highest interest rate first to save the most money over time.
Both work. Pick the one that feels best for you and stick with it. Any progress is good progress.
Step 4: Make Minimum Payments Automatic (And Pay Extra When You Can)
Set up your minimum payments on autopilot so you never miss one. Then, whenever you come into extra money—tax refunds, side hustle cash, that $20 bill you found in your winter coat—throw it at your highest-priority debt.
This does two things: it prevents late fees (which are just financial mosquitoes, sucking your money) and it helps your debt shrink faster without requiring daily willpower.
Step 5: Increase Your Income (Without Burning Out)
Getting out of debt is easier when you have more money coming in. But before you run out and get a second job that makes you hate life, consider less soul-crushing options:
- Negotiate a raise (turns out, employers don’t randomly hand these out—ask!).
- Sell stuff you don’t use (old gadgets, clothes, furniture—eBay and Facebook Marketplace are your friends).
- Take on short-term freelance gigs (tutoring, pet-sitting, writing, whatever your skill set allows).
The goal isn’t to work yourself into exhaustion. It’s to find extra cash to dump on your debt, ideally with the least amount of suffering.
Step 6: Don’t Let One Bad Month Stop You
If life smacks you with an unexpected bill and you can’t put as much toward debt one month, breathe. This is a marathon, not a sprint. As long as you keep moving forward, even if it’s slower than you’d like, you’ll get there.
FAQ: Your Debt Dilemmas, Answered
What if I have so much debt that paying it off feels impossible?
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
When your debt is higher than you can realistically manage, options like debt settlement, credit counseling, and (in extreme cases) bankruptcy exist for a reason. There’s no shame in using them. The goal is to move forward, not stay stuck.
Should I use a debt consolidation loan?
Maybe. If it lowers your interest rate and you’re not just shuffling debt around, it can help. But if consolidation feels like rearranging deck chairs on the Titanic, focus on paying off what you owe instead.
How do I stay motivated when progress is slow?
Track your wins, no matter how small. Celebrate paying off each debt (even if it’s just with an extra-long victory shower). And remember: future you is going to be ridiculously grateful that you started now.
You’ve Got This (Really, You Do)
Getting out of debt isn’t about being perfect—it’s about being persistent. One decision at a time, one dollar at a time, you’re taking control.
And if you ever need more guidance, encouragement, or just a well-timed reality check, subscribe to my newsletter and check out the Get Out of Debt Guy podcast. You don’t have to do this alone—and you’re already on the right track.
