How to Be Debt-Free (Without Selling a Kidney or Moving Into Your Aunt’s Basement)
Let’s get one thing straight right now: if you’re in debt, it’s not because you’re an idiot. Contrary to what those smug personal finance “gurus” will tell you, it’s not just about skipping lattes and living on the bare minimum. Debt happens because life happens. Because we live in a system designed to get people to spend money they don’t have—often before they even know what hit ‘em.
I know because I’ve been there. Credit cards maxed out, car payments hanging over my head, that gnawing anxiety whenever I checked my bank account (or avoided checking it… yeah, I know that game). So trust me when I say: you can get out of debt. And you can do it without all the shame and guilt. No lectures, no nonsense. Just real, practical advice.
Step One: Stop Trying to Budget Like a Saint
Here’s a fun fact: traditional budgeting sucks. It’s like putting yourself on an all-kale diet and then wondering why you cracked and ate half a pizza. Budgets are great in theory, but most people start with numbers they think they should be spending instead of what they actually spend. That’s why they fail. And then people feel like failures.
Instead of some perfect little spreadsheet, do this: track your spending for 30 days. No judgments, no changes. Just get a real picture of where your money goes. Grab a notebook, use an app—whatever works for you. This is your financial reality check.
Step Two: Face the Numbers (Yeah, Even the Ugly Ones)
Alright, this part might sting a little, but I promise it’s worth it. Once you know where your money goes, take a deep breath and list out everything you owe. Credit cards, student loans, car payments, that $20 Venmo request your friend sent six months ago (yes, that counts). Look at the interest rates and the minimum payments. No shame, no self-pity—just facts.
Why? Because you can’t fight an enemy you refuse to see.
Step Three: Pick Your Battle Plan
Now that you’ve faced the beast, it’s time to take it down. There are two main ways to tackle debt:
- The Snowball Method: Pay off the smallest debt first while making minimum payments on the others. Once that’s gone, take the money you were paying and roll it into the next debt. This builds momentum and keeps you motivated.
- The Avalanche Method: Pay off the debt with the highest interest rate first. This saves you the most money in the long run.
Which one is better? Whichever one keeps you going. This isn’t theoretical finance class—it’s your real life. Pick the method that makes you feel like a boss and stick with it.
Step Four: Find Extra Money (Without Living Like a Monk)
Here’s where most people tell you to cut out every luxury and live on rice and beans. But you know what? You’re not a robot. Extreme deprivation leads to burnout.
Instead, look for small, sustainable ways to free up cash:
- Negotiate your bills (cell phone, cable, subscriptions—you’d be surprised).
- Dump expenses that don’t bring real value (are you actually using that gym membership?).
- Pick up a side gig or sell stuff you don’t need (those golf clubs in the garage collecting dust?).
Money is a tool. The goal isn’t to hoard it—it’s to reclaim control.
One tool I love to save hidden money is the Acorns app.
Step Five: Stop the Bleeding
You can’t get out of debt if you keep digging a deeper hole. That means stop using credit cards if you can’t pay them off immediately. If that plastic is your emergency cushion, we’ve got bigger problems to solve. Start building a small emergency fund—just $500 or $1,000—to keep you from falling back into debt the next time life throws a curveball.
Step Six: Keep Your Sanity
Getting out of debt isn’t just about math—it’s about mindset. If you beat yourself up every time you make a mistake, you’ll quit. And quitting is the only way you truly fail.
Be kind to yourself. Celebrate small wins. And remember, this isn’t just about paying off debt—it’s about building a life where money works for you, instead of the other way around.
FAQs
What if I’m drowning and can’t even make my minimum payments?
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
First, breathe. You’re not alone. Contact your lenders and see if you can negotiate lower payments or hardship options. If things are really bad, consider talking to a nonprofit credit counseling agency. Just avoid anyone promising a magic fix—scams are everywhere.
Should I get a debt consolidation loan?
Maybe. If it gives you a lower interest rate and doesn’t lure you into racking up more debt, it can be helpful. But too many people consolidate debt and then rack up new balances. If you do it, make sure you’re changing your habits, too.
Is there ever a time when bankruptcy is the right choice?
Yes. Sometimes the hole is too deep, and getting a fresh start is smarter than years of drowning. It’s not the end of the world, despite what people say. Just make sure you talk to a knowledgeable professional before making that call.
Final Word: You Can Do This
You’re not doomed. You’re not bad with money. You’re just a human in a world that makes debt feel normal. But guess what? You get to decide what’s normal for you.
Take one step, then another. Forgive yourself for past mistakes. And if you want more no-BS advice, subscribe to the newsletter and check out the Get Out of Debt Guy podcast. Because trust me—if I could dig my way out, so can you.
