When debt feels overwhelming, it can be challenging to envision how generic advice can lead to financial freedom.
Financial therapists
emphasize that our relationship with money is deeply emotional and behavioral. However, achieving a debt-free life is within reach if you carve out your own path.
A great starting point is to acknowledge and normalize your feelings about debt. Dr. Christine Hargrove, a certified marriage, family, and financial therapist at the Love and Money Center at the University of Georgia, suggests recognizing that debt is a temporary state, not a permanent one.
This temporary state can be shortened with small, proactive actions. Whether it’s checking
credit card balances
, downloading a tracking app, or reading success stories about debt payoff, what matters most is to start and maintain momentum.
Here are some strategies from therapists to help sustain your debt-payoff journey.
1. Create Comfort Rituals
Think about what has helped you cope with stress in the past. It could be a warm cup of tea or a small reward to look forward to. While a simple ritual won’t erase debt, it can make financial tasks feel more manageable.
2. Designate a Support Buddy
Hargrove recommends enlisting a “body double” — a friend who can join you via phone, video, or in person while you tackle tasks. A financially savvy buddy can provide encouragement and practical advice.
3. Organize Your Time and Approach
Decide how much time you can dedicate to your goals. Even five minutes a day can lead to progress.
Break tasks into manageable steps:
Choose Your Debt-Payoff Tracker
Stay motivated by tracking your debt in a way that suits you, whether through spreadsheets, bullet journals, or downloadable printables. Additionally,
track your budget
with an app or spreadsheet to stay aware of every expense.
“The more you engage with it, the more motivated you are to stick with it,” says Simi Mandelbaum, CEO of Prospr Financial Wellness.
Quantify the Debt
Access your credit report for free at annualcreditreport.com or log into your accounts to compile a list of your debts, minimum payments, and interest rates.
“It can be comforting to know that there’s no hidden debt lurking,” Hargrove explains. “We’ve turned on all the lights.”
Create or Update Your Budget
Review your expenses and bank statements to identify areas to cut costs or switch to more affordable alternatives. Redirect any savings to an
emergency fund
and debt payments.
4. Decide on a Strategy
Set a realistic debt-payoff deadline based on what you can afford to pay monthly.
Consider these strategies to save time and money:
-
Lower Your Interest Rate:
Depending on your credit score, you may qualify for options to
reduce high-interest debt
through balance transfer credit cards, hardship plans, or consolidation loans. -
Pick the Avalanche or Snowball Method:
Decide whether to tackle the smallest balance first (
the snowball
) for quick wins, or the highest-interest debt (
the avalanche
) for maximum savings. Ensure you keep up minimum payments on all other debts to protect your credit. -
Stop Using Credit:
Temporarily switch to cash or a debit card if necessary.
If finances are tight, consider supplementing your income with enjoyable work or making lifestyle changes like moving or downsizing.
5. Build an Emergency Fund Along the Way
Prevent falling back into debt by
building an emergency fund
for unexpected expenses while paying down existing balances. Starting with the snowball method might make this easier.
“You don’t have to choose one or the other,” says Nathan Astle, a certified financial therapist at Beyond Finance. Even paying off a small balance can feel like a significant step forward.
An emergency fund can start small; even a few hundred dollars can provide a safety net. Aim for three to six months’ worth of living expenses over time.
6. Celebrate Milestones and Leave Room for Improvement
You don’t need to wait until you’ve fully paid off your debt to celebrate. Reward yourself for small milestones with affordable treats, such as quality time with family or self-care activities.
“Small incremental rewards are often more beneficial than one large reward at the end,” Astle notes.
Expect setbacks as you build new habits and navigate unexpected changes. “What you’re really changing is behavior,” Hargrove explains. “The more you apply intention and adjust as needed, the more it becomes a habit.”
Mandelbaum suggests keeping a list of challenges you’ve overcome to remind yourself of your resilience. “When I face a setback, I refer to that list and remind myself that I’ve overcome similar challenges before,” she shares.
7. Talking to Yourself Can Help. Really.
Visualize your future self being grateful for the decisions you make today. Hargrove suggests talking to yourself aloud when making choices. For instance, say, “Future [insert your name], today I’m not going to spend on dining out; I’m staying on budget for you.”
Later, when reviewing your progress, express gratitude to your past self: “Past [insert your name], you did great this month; I appreciate your efforts.”
While it may sound silly, self-talk can effectively change behaviors and bring you closer to your goals, according to Hargrove. “It creates a positive feedback loop that motivates and sustains behavior change,” she concludes.
