Melissa had three credit cards, a personal loan, and enough shame to power a small midwestern town. She wasn’t reckless. She wasn’t dumb. She was just trying to stay afloat after losing her job for the second time in two years. And yeah, she threw a few too many “I deserve this” Target runs on her Visa. (We all have our weaknesses. Some people choose wine. Melissa chose throw pillows.)
By the time she reached out for help, she told me she felt like she was drowning—with a smile on her face. That weird, stress-induced, if-I-don’t-laugh-I’ll-cry kind of smile. And here’s what I told her: “You’re not alone. And more importantly—you’re not broken.”
The Fantasy Of Financial Freedom (And The BS That Comes With It)
You’ve heard it before: “Debt-free is the new rich.” Cute. Quippy. Very Instagram. But getting there? That’s where the real fun (read: emotional rollercoaster) begins. And if you’ve ever read lists like “25 Tips to Pay Off Your Debt Faster!” you know most of it is either painfully obvious or completely out of touch.
Let’s be honest—cutting out lattes didn’t get you into this hole, and it sure as heck won’t dig you out. Nobody got $30,000 deep into credit card debt because they ordered guacamole.
So what does being debt-free in the USA actually look like? It has less to do with rice and beans and more to do with facing your financial reality—without shame and without lies.
The Debt Cycle In America: Spoiler Alert, It’s Not Just You
The average American owes over $90,000 in total debt—according to Experian. That’s credit cards, student loans, car payments, mortgages, and yes—even those sneaky Buy Now, Pay Forever (oops—I mean Later) plans.
Think about that for a second. Almost everyone you know is carrying some debt. And a decent chunk of them are struggling with it. So if your credit score feels like it needs a safe space, cut yourself a break. You’re swimming in the same lake as millions of other people… the key is to stop pretending you’re on a luxury yacht.
Stop Budgeting. Start Tracking.
Traditional budgeting is like a bad diet—it lasts two weeks, ends in guilt, and usually involves spreadsheets. Big nope.
Instead, try this: track where your money is actually going. Not where you think it should go or where a blogger told you it ought to go—where it’s really going right now. Use your bank app, a notebook, whatever. If you want something that rounds up your purchases and sneakily builds an emergency fund without thinking about it, give Acorns a look. It’s like hiding vegetables in your mac and cheese—barely noticeable, actually helpful.
Once you’re staring down the real numbers, you can build a plan based on your life—not some idealized spreadsheet full of lies and protein bars no one eats.
How To Actually Get Out Of Debt (Without Losing Your Mind Or Selling A Kidney)
1. Know Your Total, Not Just The Monthly Minimums
Step one is always the hardest: tally up what you owe. Every card. Every loan. Even that $600 balance from the dentist who definitely didn’t whiten anything. You need a full picture to make real progress. (Also, you’ll stop feeling haunted by “unknown unknowns.” Thanks, Rumsfeld.)
Tools like Credit Karma can help you get a full snapshot of your debts, interest rates, and credit score. Use it like a map—not a measuring stick for your self-worth.
2. Pick A Strategy That Fits—Not One Built For “Perfect” People
Debt snowball? Avalanche? Kitchen sink? Doesn’t matter what method you pick—what matters is that you actually do it. Pick the method that motivates you the most. Small wins? Go snowball. Saving on interest? Avalanche away, my friend. Just make sure your plan fits your lifestyle and mental energy—not someone else’s Pinterest board.
3. You’re Allowed To Press The Big Red Button
Here’s the controversial bit: sometimes you need to face bigger options like debt settlement or even bankruptcy. They sound scary—mostly because they’ve been demonized by people who think morality and credit scores are the same thing. (They’re not.)
About 70% of people don’t finish credit counseling programs. That’s a real failure rate, not fear-mongering. And if you drag that out for 5 years, you might miss out on $400,000 in opportunity. Yep. That’s not a typo.
Filing bankruptcy isn’t financial suicide—it’s often a reboot. In fact, people who file bankruptcy tend to recover and thrive faster than those who drown in minimum payments for the rest of their adult lives. So don’t let shame steer the ship.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
People Also Ask (You Might Be Wondering, Too)
What Does ‘Debt Free USA’ Actually Mean?
If we’re talking about individuals, “debt-free” typically means you’ve paid off high-interest consumer debt—like credit cards and payday loans. You might still have a mortgage or student loans, but the financial panic has stopped. You can breathe again. You have options again. That’s the real goal.
Should I Use A Personal Loan To Consolidate Debt?
Maybe. It depends. If you qualify for a much lower interest rate, and you won’t continue using the cards you just paid off, it can help. But if you’re just moving the deck chairs on the S.S. Disaster, that loan could make things worse—fast. Be real with yourself. If you’re not sure, run the numbers with a tool or talk to a licensed financial pro (who doesn’t sell you stuff on commission).
Is Credit Counseling A Good Idea?
Sometimes—if your debt is under $10k and you’re mostly behind on interest math, not actual payments. But don’t romanticize it. Many people fail to complete the full plan, and the damage to your long-term wealth from slower growth is seriously underrated. If you’re considering this, read this failure rate comparison first.
Final Thoughts From A Battle-Scarred Debt Guy
Being debt-free isn’t about discipline. It’s about clarity—and deciding what kind of life you want to build. Not for “someday,” but for next Tuesday. For the next Amazon cart. For the next moment you catch yourself saying, “I’ll figure it out later.”
You deserve a life where you don’t panic when your phone buzzes or your bank app pings. Where you can afford to freak out about normal stuff (your kid’s math homework, for example) instead of whether your card will be declined again.
Good news? You’re not just stuck. You’re standing at the start of something way better. And you’re here now. So… keep going.
Need backup? Subscribe to the weekly newsletter and catch an episode of the Get Out of Debt Guy podcast. We’re rooting for you—from our mismatched IKEA desk and coffee-stained keyboard, naturally.
