Clearing the Path: Eliminating Debt for Financial Freedom
Let’s be real—debt is the worst. Whether it’s credit card balances, student loans, or medical bills, it’s a weight that’s always there, slowing you down and stressing you out. But here’s the good news: you can break free.
If you’ve been struggling to pay off your debt, try seeing it a different way. Paying off debt isn’t about punishment or deprivation. It’s about creating space—space for savings, investments, and the freedom to say “yes” to opportunities without hesitation.
Step One: Face the Numbers
If you’ve been avoiding your debt, now’s the time to rip off the Band-Aid. Grab a pen, paper, or a spreadsheet and list out:
- How much you owe
- Who you owe it to
- The interest rates
- Minimum monthly payments
This might feel uncomfortable, but knowledge is power. Seeing the whole picture will help you create a game plan.
Or you can utilize our sankey diagram to quickly visualize your payments and spending. Step Two: Pick Your Payoff Plan
There’s no one-size-fits-all method for tackling debt, but here are two popular strategies:
The Snowball Method
- Start by paying off your smallest debts first, regardless of interest rates.
- Each time you knock one out, you’ll feel a rush of accomplishment.
- This momentum keeps you motivated to tackle the next debt.
The Avalanche Method
- Focus on debts with the highest interest rates first, even if they’re the largest.
- You’ll save more money in the long run because you’ll pay less interest overall.
Both approaches work—it’s just about what keeps you motivated.
Step Three: Find Extra Cash to Speed Things Up
Want to pay off debt faster? Here are some ways to free up money:
- Cut back on extras: Temporarily pause on streaming subscriptions, dining out, or impulse buys.
- Sell stuff you don’t need or don’t want: Old electronics, clothes, or furniture can add up quickly.
- Start a side hustle: Whether it’s freelancing, tutoring, or driving for a rideshare service, even a few hours a week can make a big difference.
- And when you get any unexpected windfalls—like tax refunds or bonuses—throw them at your debt.
Why This Matters
Every dollar of debt you pay off is a dollar you free up for your future. Imagine a life where your income isn’t tied up in monthly payments but is fully yours to save, invest, or spend however you choose.