Managing Debt - Practical Strategies to Pay Off and Stay Debt Free
"The only person you are destined to become is the person you decide to be." - Ralph Waldo Emerson
Insights from a Certified Money Coach:
Debt.
Even just seeing that word can make our shoulders tense up a bit, right?
For so many of us, debt feels like a looming shadow - something we try to ignore but that sits there, nagging us in the background.
And let’s be real: it can feel like no matter how much we chip away at it, debt has a way of hanging on.
But here’s the truth I’ve learned from my own journey and from working with my clients: you can absolutely overcome debt and move forward with confidence.
Not only that, but you can stay debt-free in the long run and use your money to build the life you want.
In this post, I’m going to share the practical strategies that helped me get out of debt, along with the steps that have empowered my clients to do the same.
My Journey With Debt: From Overwhelmed to Empowered
Years ago, debt was my constant companion.
I had credit cards, a car loan, and student loans hanging over me.
Like a lot of people, I felt stuck.
I was making my minimum payments, but every month, it seemed like my balance barely budged.
I’d feel guilty buying even small things because I knew I should be putting that money toward my debt.
It’s exhausting to live that way, constantly anxious about how much you owe and feeling like there’s no end in sight.
One day, I realised I’d had enough.
I wanted freedom, control, and peace of mind.
So, I decided to make a plan - a real, actionable plan to get out of debt and stay that way.
I started small, with a few simple steps, and over time, I saw that balance shrinking.
Watching my debt go down felt amazing, like taking off a heavy backpack I’d been carrying for far too long.
Now, I’m debt-free, and the difference is incredible.
No more guilt, no more dread - just the confidence of knowing that every dollar I make is working for my future.
Step 1: Get Clear on What You Owe
The first step to tackling debt is to take a clear-eyed look at where you stand.
I know this part can be tough - it was for me!
It’s tempting to avoid looking at the exact numbers because it’s easier to ignore them.
But clarity is your friend here.
You can’t fix what you can’t see.
Start by gathering all your debt information: credit cards, loans, anything that has a balance.
List each debt with its interest rate, minimum payment, and balance.
Having everything in one place makes it easier to see the full picture.
Personal Tip: When I did this, I used a simple spreadsheet.
I labeled each debt, added the interest rates, and included my minimum monthly payments.
I kept it in a visible place so I could check in on it regularly, and it reminded me that each little payment brought me one step closer to freedom.
Step 2: Pick a Repayment Strategy (Snowball or Avalanche)
Once you know what you owe, it’s time to choose a repayment strategy that will keep you motivated and help you pay down debt faster.
There are two main strategies that work really well: the Debt Snowball and the Debt Avalanche.
- Debt Snowball: With the snowball method, you focus on paying off your smallest debt first, while making minimum payments on everything else.
Once that smallest debt is gone, you move to the next smallest, and so on.
This strategy is great for those who want to see quick progress because it gives you early wins.
- Debt Avalanche: With the avalanche method, you pay off the debt with the highest interest rate first, while making minimum payments on the rest.
Once the highest-interest debt is gone, you move to the next highest, and so on.
This method saves you the most on interest over time and is often the fastest way to become debt-free.
I chose the snowball method because I needed to see progress to stay motivated.
Watching those small balances disappear one by one gave me the momentum to keep going.
Client Success Story: Sarah’s Snowball Triumph
One of my clients, Sarah, was dealing with four credit cards and a personal loan.
She was overwhelmed and didn’t know where to start.
I suggested she try the snowball method, tackling her smallest credit card balance first.
Each time she paid one off, we celebrated, and her confidence grew.
Within two years, she was completely debt-free.
The snowball method was perfect for her because it gave her those little wins that kept her excited and focused.
Step 3: Trim Expenses and Find “Extra” Money
Let’s talk about cutting back.
When I started my debt journey, I realised that finding extra money to pay off my debt was key.
I took a close look at my expenses and found areas where I could cut back, even just a little.
Think of it as redirecting your money to serve your future self.
- Cancel or Pause Subscriptions:
I took a break from streaming services and other non-essentials for a few months.
Every little bit went toward my debt.
- Meal Planning:
Eating out was a habit I didn’t realise was costing so much!
I started meal planning, which saved me money and made me feel more organised.
- Sell Unused Items:
I sold some clothes and electronics I wasn’t using.
Every dollar went straight to my smallest debt.
Client Example: Lisa’s Expense Makeover
Lisa, another client of mine, was hesitant about cutting back at first.
She loved her daily coffee runs and weekend outings.
We worked together to create a realistic budget that allowed her to enjoy small luxuries while still saving.
She cut back on takeout and paused her gym membership (and walked outside instead).
Over time, she found herself with an extra $200 each month, which made a massive difference to her debt payments.
Step 4: Make Extra Payments When You Can
One of the best moves I made was committing to extra payments whenever I had a little more money coming in.
Whether it was a tax refund, a work bonus, or even a little extra from a side gig, I’d use those unexpected funds to make a bigger dent in my debt.
The key here is consistency.
Even if you can only make a small extra payment each month, it adds up!
I made a goal to pay an extra $100 a month on my debt, and it made a noticeable difference over time.
Client Strategy: Sarah’s “Round-Up” Habit
Sarah used a clever trick we came up with together: she started rounding up her payments.
If her minimum payment was $63, she’d pay $70.
It seemed small, but over time, those extra dollars helped her pay off her debt faster without feeling like she was sacrificing too much.
Step 5: Celebrate Milestones and Keep Motivated
Paying off debt is a journey, and it can be challenging to stay motivated.
So, celebrate every single win, no matter how small.
Reaching a certain balance, paying off a credit card, or even making an extra payment are all achievements worth acknowledging.
Every time I reached a milestone, I’d treat myself to something small but meaningful - a nice dinner at home, a new book, or a relaxing spa day.
By celebrating along the way, I stayed excited and kept my eyes on the goal.
Debt-free living isn’t just about the end result; it’s about feeling empowered and in control throughout the process.
Client Example: Lisa’s Reward System
Lisa created a reward system for herself, too.
Every time she paid off a card or hit a new milestone, she’d take herself out for a celebratory coffee or buy a small gift for herself.
These little treats kept her spirits high, and she found that reaching those milestones felt less like a chore and more like a personal triumph.
Step 6: Create a Debt-Free Mindset and Build Long-Term Habits
Becoming debt-free is an accomplishment, but staying debt-free is equally important.
Once I paid off my debt, I was determined to keep it that way.
I committed to getting rid of my credit cards altogether (Some people are less extreme and only use credit cards for purchases they can pay off that month) and I prioritised building up an emergency fund so I wouldn’t have to rely on credit if unexpected expenses came up.
Long-Term Habit #1: Avoid New Debt
If you’ve just paid off a credit card, keep it that way.
Don’t let yourself slip back into old habits.
I learned to think twice about each purchase and really ask myself, “Is this worth going back into debt?”
Long-Term Habit #2: Build an Emergency Fund
Setting up an emergency fund was my safety net.
Have you read my blog post on building up an emergency fund? If not - go here now!
Instead of reaching for a credit card when an unexpected bill popped up, I could rely on my savings.
It took time to build, but even a small emergency fund can protect you from slipping back into debt.
Client Strategy: Sarah’s Debt-Free Toolkit
After Sarah paid off her debt, she created what we call her “Debt-Free Toolkit.”
She set aside a small amount each month for emergencies, committed to living within her means, and continued using the “round-up” trick on her savings.
It’s been over a year, and she’s remained debt-free, empowered, and thriving.
Step 7: Enjoy the Freedom of a Debt-Free Life
The day I made my final payment was one of the most empowering moments of my life.
I didn’t just feel relief - I felt freedom, control, and huge amounts of pride.
Every step I took toward paying off my debt taught me valuable lessons about resilience, commitment, and valuing myself.
Living debt-free means that you’re not weighed down by the past.
Every dollar you earn can go toward building the life you want, whether that’s investing in your dreams, taking trips, or enjoying new experiences without guilt.
For my clients, that freedom looks different for each of them, but it’s always incredibly meaningful.
Lisa told me recently, “I’m finally in a place where my money works for me, not the other way around.”
And that’s what this journey is all about.
Your Debt-Free Future is Within Reach
Managing and paying off debt is definitely NOT about deprivation - it’s about empowerment.
It’s about taking charge of your financial story, one step at a time.
Start small, stay consistent, and remember to celebrate every single victory along the way.
If you’re ready to begin, just know that you’re not alone.
You have the power to rewrite your relationship with debt, to embrace your financial freedom, and to live life with the confidence that comes from knowing you’re in control.
Let’s make this the year you tackle debt, and let’s make it the beginning of a future where you’re free, empowered, and ready to use your money to build the life you’ve always dreamed of!
While you’re here, be sure to snag my free workbook, Map the Gap.
It’s designed to make money goal setting a breeze - so easy and effective that it’s perfect for building into your regular routine. Even if you’re just dipping a perfectly polished toe into the world of Money Coaching, you’ll find it simple to dive in and get started. Trust me, the results will be so fabulous you’ll be amazed!
There’s nothing to lose except your fear of failure, so go ahead and grab your copy here.