Being in debt feels overwhelming. The constant weight of minimum payments, interest rates, and collection calls can drain your energy, your focus, and your peace of mind. But escaping debt isn’t just possible—it’s absolutely within your reach in 2023.
With a clear plan and the right mindset, you can take control of your financial life, step by step, without sacrificing your mental health in the process.
Understand What You Owe
The first step is to face your numbers. Open every account statement, loan notice, and credit card balance. Write down:
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Who you owe
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The total amount
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The minimum monthly payment
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The interest rate
Once you see everything in one place, the fear starts to fade. Clarity gives you power. It also helps you prioritize where to focus first.
Stop Accumulating New Debt
You can’t dig out of a hole if you keep digging. Freeze your credit card use. Pause “buy now, pay later” purchases. If needed, remove your card from digital wallets and unsubscribe from marketing emails.
Your job right now is to stop the bleeding. Once the debt stops growing, every dollar you pay will finally count toward progress.
Create a Realistic Repayment Plan
Build a monthly budget that includes all your living expenses, then subtract them from your income. The leftover is your debt repayment fuel. It might be $50 or $500—it doesn’t matter. What matters is consistency.
Use a spreadsheet or app to track this plan weekly. Allocate every extra cent toward your chosen debt strategy.
Pick a Strategy: Avalanche or Snowball
The debt avalanche method pays off the highest interest debts first, saving you the most money long-term.
The debt snowball method focuses on paying the smallest balances first, giving you quick wins and motivation.
Pick the method that works best for your personality. Some people need momentum. Others want maximum savings. There’s no wrong choice—just commit to one and start.
Negotiate Lower Interest Rates
Call your credit card companies and lenders. Ask if they can reduce your interest rate, especially if you’ve been a long-time customer. Mention hardship or your intent to pay off the balance aggressively.
Even a few percentage points saved means less interest and faster progress. You can also transfer balances to a 0% APR card—just beware of transfer fees and expiration periods.
Cut Expenses and Free Up Cash
Every dollar matters. Audit your spending and look for leaks. Cancel unused subscriptions. Cook at home more often. Delay non-essential purchases.
This isn’t about depriving yourself forever—it’s about making temporary sacrifices for long-term relief. The sooner you’re debt-free, the sooner you’ll have total freedom over your money again.
Increase Your Income
If cutting isn’t enough, focus on earning more. Take freelance gigs, sell unused items, or monetize a skill. In 2023, side hustles are more accessible than ever—delivery apps, tutoring, remote jobs, digital products.
Use all extra income strictly for debt repayment. It accelerates your timeline and builds momentum.
Automate and Simplify Payments
Set up automatic payments for minimum amounts so you never miss due dates. Then, make extra payments manually toward your target debt.
Automation removes stress and prevents late fees. Just make sure your checking account has enough funds to avoid overdraft.
Build Emotional Resilience
Debt isn’t just a math problem—it’s emotional. Shame, regret, anxiety, and guilt often come along for the ride. Don’t let those emotions trap you in inaction.
You are not your debt. You are someone working to fix it. Practice self-compassion. Celebrate small wins. Talk to someone you trust if it gets heavy.
Know When to Ask for Help
If your income can’t cover your minimums or you’re facing aggressive collections, contact a nonprofit credit counseling agency. They can help you restructure payments, negotiate with lenders, and explore debt management plans.
Avoid debt settlement scams. Real help is free or low-cost and comes with education, not pressure.
Track Progress and Celebrate Wins
Keep a visual tracker—a chart, app, or simple checklist of debts paid off. Watch the numbers fall. Celebrate every milestone, whether it’s paying off one card or hitting a savings goal between payments.
Progress boosts motivation. The more you see, the more you’ll believe you can finish.
Final Thoughts
Getting out of debt in 2023 is possible—without panic, shame, or burnout. You don’t need perfection. You need a plan, a system, and a little grit. Start where you are, with what you have, and move forward one payment at a time.
Debt is temporary. Peace of mind is forever.