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Are you feeling extremely overwhelmed and stressed over your debt?
I can bet you think about it more than you wish you did. The worst part about thinking about your debt is that you are starting to lose hope of paying it off, and you feel like there’s no way out.
Credit cards, student loans, and personal loans add up quickly and leave you feeling stuck in the cycle of minimum payments and never-ending stress.
When I found myself deep in $30,000 of credit card debt, I thought everyone else could pay their debt except for me. I tried so many times and failed. Even when I increased my income three times, I still couldn’t make a dent in my debt payoff. Of course, I started to lose hope.
But I kept failing because I was trying to fit into a cookie-cutter that was not meant for me. I was learning strategies from white men who did not understand my background, responsibilities, and financial trauma.
But the reality is that you can get out of massive debt. It won’t happen overnight, but with the right debt payoff strategies that work for you, it’s possible to regain control of your finances and finally achieve the financial freedom you’ve been dreaming of.
In this post, I’ll share why paying off massive debt is possible, plus the exact steps you can take to start making real progress without giving up everything you love.
1. Shift Your Money Mindset First
Here are two things that will lead you to help you shift your money mindset around debt.
First, be grateful for your debt. I know what you’re thinking, “Have you lost your mind, Orlenda! Debt is the reason I’m stressed 24/7!” And, I get it, trust me. But let’s reflect for a second on what your debt helped you do.
What were you coping with in your life that you got into massive credit card debt?
Perhaps you accumulated a lot of debt because you left a toxic marriage. Or, for example, I used retail therapy in college because I did not know about real therapy. I had just left home, where I experienced domestic violence, and I did not know how to start my healing journey. I started to thank my debt for helping me cope during a dark time in my life.
Secondly, before you crunch numbers, you need to know that your debt is possible to pay off, or you’ll stay stuck. Again, YOU HAVE TO BELIEVE IT’S POSSIBLE FOR YOU! Just because everything you’ve done has not worked doesn’t mean that you will be in debt forever; you just haven’t found what works for you. There is a better plan and strategy for you that does work, but you haven’t found it yet. But don’t worry, we will get to it!
Try this: Instead of saying, “I’ll never pay off this debt,” say, “Every payment I make gets me one step closer to financial freedom.”
You have to start believing in yourself, and it starts with one payment at a time.
Here is the pep talk and strategy you need to finally pay off your debt as a beginner.
2. Get Clear on Your Total Debt
Not knowing how much debt you owe causes the same level of stress as knowing your total debt, if not more. Sometimes, people are surprised by how much debt they have because they expected to have more. So you always want to know your total debt because knowledge is power.
Start by writing down every balance, interest rate, and minimum payment.
When you see the full picture, you’ll know which debt payoff strategy will work best for you:
Debt Snowball: Pay off the smallest debts first for quick wins.
Debt Avalanche: Pay off the highest-interest debts first to save the most money long term.
Both methods work. However, they work for different people. If you choose the wrong method for you, it doesn’t mean you’re a failure. Be willing to pivot and restart.
For instance, if you are disciplined, choose the avalanche method, and you will save money on interest while maintaining momentum. But if you need to have small wins to show yourself that you can pay off debt, then consider the snowball method. Neither of these methods is better than the other. They just work for two different people. So it’s important that you know yourself in order to choose what works for you.
You may be interested in reading: The biggest debt pay off mistake that’s keeping you stuck.
3. Automate Your Payments
Automating your payments is super easy, and it’s basically putting your plan on autopilot. So, do not overthink this step; it’s the easiest! I know you want to have full control, and I did too, but it honestly just gives you more stress continuing to think about your debt.
You want to avoid falling behind on payments because it makes debt even harder to manage. Automating will also help you never miss a due date and avoid those expensive late fees.
Even better, if you can automate extra payments (like an extra $50 each month toward your highest-priority debt), you’ll build momentum without having to constantly think about it.
You will be paying off your debt while you are present, living life instead of focusing on stress.
I hope that by this point, I’ve convinced you, because this was a game-changer for me. Before I automated my payments, I would get paid and then spend the money that weekend! And then I would see how much I had left over for debt. Leaving me to only have the minimum payment, and at that rate, I was going to take such a long time to pay it off. When I automated my payments, I was able to pay off my debt in 18 months because I didn’t have to think about it. It was happening in the background.
I removed the temptation.
You may be interested in reading: 10 Steps to pay off debt while living paycheck to paycheck.
4. Cut Costs—But Don’t Cut All the Fun
You have heard before to not eat out, to not spend money on things you don’t need, but here’s the thing: getting out of debt doesn’t mean you have to live miserably. You can have a balance. You can have fun and still pay a lot of debt. This was the secret sauce for me, and it’s how I was able to pay off $30,000 of credit card debt.
If you cut every fun expense, you’ll burn out fast and give up.
This happened to me. I increased my salary three times, but I wasn’t able to pay off my debt because I was being overly restrictive, which only led me to get myself back into more debt.
Okay, maybe being restrictive works for some people, but it definitely doesn’t work for you and me. It’s not that there’s anything wrong with us. It just means we need a different strategy on how to tackle paying off our high debt.
This is how you can do it: Choose just a few areas where you can cut back:
- Cancel unused subscriptions.
- Cook at home more often.
- Shop smarter with a list to save money
Then, keep a small budget for fun. You must set an amount. Let’s say you set $150 biweekly. That fun money, you can use it to buy a latte in the morning, go out to breakfast with a friend go to the movies. Anything that brings you joy. But here is the catch: once you have spent all of your fun money for those two weeks, you cannot grab any more money from anywhere else in your budget once it’s gone. It’s gone. Those will help you still enjoy a coffee date or a night out without guilt, while putting the majority of your money toward debt.
Trust me, you won’t even be thinking about your debt because it is all automated. You will be focused on being present and having fun during this season of your life.
Here is how to pay off debt by allowing yourself to play.
5. Increase Your Income
Do not focus solely on cutting costs, as there is only so much that can be cut. The fastest way to pay off massive debt is to increase your income. There is an unlimited amount of money you can make, so after cutting costs, shift your focus to increasing your income.
You may want to read: How to earn more to get out of debt without a side hustle.
Increasing your income could mean:
- Asking for a raise at work.
- Starting a side hustle.
- Moving Jobs.
Imagine receiving an extra $200 per month to speed up your debt payoff timeline.
This is your answer to pay off massive debt fast!
You may want to know how to add a side hustle without burning out.
The answer to my $30,000 credit card debt turned out to be increasing my income by $35,000 a year, which helped me pay it off in just 18 months. But here’s the thing: before I finally became debt-free, I had already increased my income three different times. The problem? Every time I earned more, I also increased my lifestyle. I never had extra money to actually put toward my debt.
At that point, I was frustrated. How could I be making more money than ever yet not make a dent in my debt? That’s when my focus shifted. I got clear on my “WHY.” And I made it a FUN why. I knew that if I paid off my debt, I could travel more and eventually move out of state to create new adventures. That vision kept me going. Sure enough, I landed a job with a $35,000 salary increase, and 18 months later, I was completely debt-free!
So when you ask yourself, “Can I really pay off massive debt?” YES, YOU CAN!
You need to focus on what works for you, not what everyone else is doing!!! The strategies they are using work for them, but it doesn’t mean they will work for you, too, so do not take this as a failure if they don’t work for you.
This is why you are still in debt with a high income job, and what to do about it.
Can You Really Get Out of Massive Debt?
Absolutely! You can definitely pay off massive debt, but know it takes time, patience, and strategy, and it’s 100% possible. The secret sauce you are looking for is to shift your mindset, create a clear plan, and stay consistent. Paying off your debt isn’t about depriving yourself; it’s about spending in alignment. Create a life where your money works for you, not against you.
So, take the first step today. Even if it’s just $25 toward your smallest debt, you’re building momentum and confidence. Soon, those $25 will turn into sending an extra $100 and then an extra $250, until your debt is paid off. Know it does not happen overnight, but you will be debt-free before you know it.
Good luck!
More debt payoff tips to help you stay motivated and make progress:
