Drowning In Debt? Here’s The Roadmap To Pay It Off Faster.. In Your Budget
Debt.
It’s like that one guest who overstays their welcome—annoying, expensive, and hard to get rid of.
If it feels like your paycheck is gone before you even see it, you’re not alone. The average American household carries over $100,000 in debt, and that includes everything from credit cards and auto loans to student loans, BNPL (Buy Now, Pay Later), and even 401(k) loans. Let me not even get into the issue about personal loans that can be predatory as hell.
And let’s be real: Debt is debt. Some folks like to separate it into “good debt” (like mortgages or student loans, eh) and “bad debt” (like high-interest credit cards). But if you’re struggling to make payments, it’s all bad for your wallet—and your peace of mind.
So, how do you start paying it off without feeling overwhelmed? Let’s break it down. These are the same strategies I use with my clients to help them knock out debt faster—even in a high-interest economy like this one.
Step 1: Face the Numbers—How Much Do You REALLY Owe?
Debt has a way of sneaking up on you. One missed payment turns into late fees. Your BNPL payments start stacking up. That “low” credit card balance you planned to pay off suddenly isn't so low anymore. The first step? Rip off the Band-Aid and get clear on your total debt picture.
Go through your finances with a fine-tooth comb. If you don’t know where to start, check out my blog post on Auditing Your Wallet—it’ll walk you through how to track your spending, spot money leaks, and understand where your money is really going.
Write down (or use an app to track):
The total balance on each debt
The interest rate (APR) - also lock into how much that APR factors into how much your payment goes towards paying back the money you owe vs paying back the money it cost to borrow that money.
The minimum payment compared to how much you could pay (when you have extra cash, negotiated bills, get a bonus, etc)
Any fees or penalties
Fund Focus: The average credit card APR is over 20%, meaning if you’re only making minimum payments on a $5,000 balance, you could be paying it off for 20+ years—and shelling out over $6,000 in interest. And in this economy, I want you to pay this debt off ASAP. Let’s just focus on throwing your money at 1 small debt to determine your fund formula, talked about that here.
Many of my clients don’t realize just how much they’re paying in fees until they look at their statements. Late fees? Annual fees? Penalty APRs? They add up quickly. Call your lender and ask if any fees can be waived—because the answer is sometimes yes.
Step 2: Pick A Payoff Strategy—Avalanche or Snowball?
Now that you know the damage, it’s time to choose a strategy. We’ve all seen and heard about these two different methods, but let’s add some context to how to apply them to your debt:
1. The Debt Snowball Method – Best For Motivation
Pay off the smallest debt first while making minimum payments on the rest.
Once the first debt is cleared, roll that payment into the next smallest one.
Keeps you motivated with quick wins.
Example: One of my clients had multiple forms of debt—BNPL, credit cards, and a personal loan. We used the snowball method to knock out the BNPL first since it had the smallest balance. Once that was gone, they had extra money to roll into their higher-interest credit card payments. We also negotiated the APR on the credit cards and personal loan.
*This method works if you need small wins to stay focused.
2. The Debt Avalanche Method – Best for Saving on Interest
Pay off the highest-interest debt first, then move to the next highest.
Saves you the most money over time because you minimize interest.
Example: If you have a credit card at 23% APR, a personal loan at 10%, and a BNPL at 0%, the avalanche method says to tackle the credit card first, then move to the personal loan.
*This method saves the most money, but it takes more patience.
Step 3: Be Strategic About 0% APR Balance Transfers
Credit card companies love to tempt you with 0% APR balance transfer offers—and when used correctly, they can help you get ahead. But there’s a catch: If you don’t pay off the balance before the promo ends, you could end up in worse shape than before.
Before transferring a balance, ask yourself:
Can I pay this off before the 0% period ends? If not, interest will hit you hard.
Does the transfer fee make sense? Most charge 3-5%, which could add up.
Will this fit in my budget? You need to make larger payments to knock it out fast.
Example: If you move $5,000 to a 0% APR card for 15 months, you’d need to pay at least $334 per month to clear it before interest kicks in. Even if you don’t pay if off before that deadline, call to see if you can counter the APR lower due to you being proactive in maintaining the profile of the card.
Fund Tip: Some lenders offer 0% APR for purchases too—but that doesn’t mean you should spend more!
Step 4: Debt Cancellation? Could Be A Scam
If you’re deep in debt, you’ve probably seen those “debt relief” ads promising to erase your debt or settle for pennies on the dollar. Sounds good, right? Well…
Many debt settlement companies charge high fees and can leave you worse off.
I’ve seen posts where people said that the debt the “consolidated” was never paid - yikes.
Some tell you to stop making payments, tanking your credit in the process.
Debt “forgiveness” often comes with tax consequences.
What to do instead: If you’re struggling, call your lenders directly. Many offer hardship programs that can temporarily lower your interest rate or reduce payments without hurting your credit.
Step 5: Negotiate Your Interest Rates & Late Fees
Credit card companies aren’t in the business of giving you deals—but they will negotiate if you ask.
Call your credit card company and ask:
Can you lower my interest rate? You’d be surprised how often they say yes.
Can you remove a late fee? If you’ve been a good customer, they might waive it.
Do you have a hardship program? This can temporarily reduce your interest rate or minimum payment.
I’ve had clients successfully negotiate their APR down by 5% or more just by making a phone call. And removing a late payment? That can boost your credit score—which helps with better interest rates in the future. Call people BEFORE they start calling you about that debt going into collections or even you having to go to court behind it. Do I need to write a blog post about this next?
Step 6: Adjust Your Budget To Free Up More Cash
To pay off debt faster, you need extra money. Here’s how to find it without feeling deprived:
Cut Back on Non-Essentials – Are all those streaming services really necessary?
Negotiate Your Bills – Call your internet or phone provider and ask for a lower rate. I have a blog post that talks about how you can negotiate your bills along with your debt. What you save, you save in a HYSA or even going towards debt.
Automate Payments – Set up autopay to avoid late fees (but don’t go on autopilot with your spending).
Even adding an extra $50 per month toward debt on your interest can save you hundreds in interest over time.
Final Thoughts: It’s Time To Take Back Control
Debt doesn’t have to control your life. Whether you’re dealing with credit cards, BNPL, personal loans, or student loans, having a strategy makes all the difference. Keep in mind that you didn’t get to where you are overnight, so your reframing with your debt will not happen overnight as well. Give yourself grace, but also a roadmap. Look at your budget to determine what you can and can’t do - and work at it, bit by bit.
If you need motivation, use the snowball method.
If you want to save the most money, use the avalanche method.
If your interest rates are too high, negotiate or consider a balance transfer.
If you’re struggling, look into hardship programs—NOT shady debt relief companies.
Your money should be working for you, not against you. If you’re ready to put a plan in place, let’s build one together. Let’s chat.