Once I had that eye-opening moment of realizing just how deep I was in debt, it was time to do something about it. The hardest part was accepting that I couldn’t keep ignoring it. The next step, though, felt almost as daunting: creating a debt repayment plan. I knew I couldn’t keep floating by, hoping things would magically improve. I had to be intentional, strategic, and realistic about how I was going to get out of this mess.
I remember sitting down one evening with a glass of water, a notebook, and a pen. It felt like a huge mountain I had to climb, and I wasn’t sure where to start. But I knew that if I wanted to take control of my finances, this was the moment to get serious about it.
The first thing I did was make a list of all my debts. I had credit card bills, student loans, and personal loans, each with different interest rates, due dates, and minimum payments. For the first time, I saw everything in one place—truly laid out in front of me. And let me tell you, it was overwhelming. But it was also a necessary reality check. Seeing the full picture helped me realize that I couldn’t keep putting my head in the sand anymore.
The next step was figuring out a strategy for paying off my debt. I had heard about two common methods: the debt snowball and the debt avalanche. Both methods had their pros and cons, but I had to choose the one that worked best for me.
The debt snowball method involves paying off the smallest balance first, regardless of interest rates. The idea behind this method is that by quickly knocking out smaller debts, you’ll build momentum and feel a sense of accomplishment. It’s a psychological boost that keeps you motivated as you tackle your debt.
On the other hand, the debt avalanche method focuses on paying off the highest-interest debt first. This strategy saves you more money in the long run because you’re minimizing the amount of interest you pay. While it might take longer to pay off the smaller balances, it’s more cost-effective in the end.
I was torn between the two methods because both had their appeal. But ultimately, I decided on the debt avalanche method. I figured that the sooner I paid off the high-interest debts, the better. I didn’t want to keep pouring money into interest payments that weren’t doing me any good. I’d rather tackle the root of the problem head-on.
The next step was getting my budget in check. I couldn’t just keep spending the way I had been. I had to make cuts. It was painful at first, but I had to get realistic about what I needed versus what I wanted. I made a list of all my monthly expenses—rent, utilities, groceries, subscriptions, and everything else. I quickly realized how many unnecessary things I was spending money on. I was paying for a streaming service I barely used, eating out too often, and buying clothes I didn’t need.
I started by cutting back on the luxuries. I canceled a few subscriptions, stopped dining out as much, and started cooking more at home. It wasn’t about depriving myself, but about redirecting those funds toward my debt. The more I paid attention to my spending, the more I realized how easy it was to make small sacrifices that added up over time.
I also set a goal: I wanted to pay off a significant portion of my debt within a year. It felt ambitious, but I knew it was possible if I stuck to my plan. I decided to track my progress each month, seeing how much I’d paid off and how much was left to go. There’s something so motivating about watching that balance decrease, even if it’s just by a little bit at a time.
One of the toughest parts of this whole process was dealing with the mental and emotional side of things. I had to shift my mindset from “I’ll figure it out eventually” to “This is happening now.” That meant making some tough decisions, like turning down invitations to events that required spending money, or saying no to the things I didn’t truly need. But every time I said no to something I didn’t need, I felt like I was taking a step toward freedom.
In addition to cutting back, I also found ways to earn extra money. It wasn’t much, but it helped. I took on a side gig that brought in a little extra cash each month. I also sold things I no longer needed, like old clothes, electronics, and furniture. It wasn’t about getting rich, but it was about taking any opportunity to pay off my debt faster.
And let’s not forget about the small wins. When I paid off a credit card balance or knocked a student loan down by a few hundred dollars, I celebrated—even if it was just a small victory. I gave myself credit for making progress, no matter how slow it seemed. Getting out of debt is a long road, but it’s made up of tiny steps, and each one counts.
The thing I had to keep reminding myself was that this wasn’t going to happen overnight. There would be setbacks—unexpected expenses, temptations to spend—but I had to stay focused on the bigger picture. The most important thing was staying committed. If I could make even a small dent in my debt each month, I knew I would eventually get there.
Creating my debt repayment plan wasn’t just about paying off numbers on a page. It was about taking control of my life, reclaiming my financial freedom, and breaking free from the anxiety that had held me hostage for so long. It wasn’t easy, and it didn’t always feel like I was making progress. But with every payment, I felt a little bit lighter, a little closer to the person I wanted to be.
The journey ahead was long, but I knew one thing for sure: I was finally on the path to financial freedom.