Are you overwhelmed by your debt?
Feeling like you just can’t get ahead, no matter how hard you try?
I’ve been exactly where you are.
Not long ago, I found myself over $150,000 in debt, all from graduate student loans. I was scared, anxious, and hopeless. With a few simple changes, I was able to pay off all my debt in just 16 months. Your finances can be an unrelenting source of stress or, when managed with clarity and purpose, can be a huge source of peace and happiness.
What I learned is that getting out of debt isn’t just about money — it’s about mindset. In this post, I’ll walk you through the 3 mental shifts that changed everything for me.
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3 Things I Did To Pay Off My Debts
Step 1: Stop Letting Shame Drive the Car
Let me know if this sounds familiar: Do you have a growing pile of unopened bills somewhere in your house? Are you avoiding your credit card statements with the same fervor with which you avoid your ex? Does the theme song from Jaws start playing when you open your online banking app?
No, I’m not a stalker, but I know exactly how avoidance and denial can seem like a winning strategy when it comes to money. In fact, my old financial plan was simple — you can’t feel broke if you never check your balance!
But the truth is that avoiding your money doesn’t protect your peace; it only prolongs your panic.
The very first step to paying off your debt is to face your finances head-on, no matter how “bad” they are. Most people have no idea how much debt they have, and if that’s you, you’re not alone. The monster is always worse in your head than in real life.
When you can’t describe the problem, you can’t define a solution. When you know exactly where you stand with your money, suddenly, it feels much more manageable.
Facing your debt takes a lot of courage. You’re not really looking at a number, but at a mirror. You’re not facing a bank statement, but your past decisions.
When I realized I was over $150,000 in debt, I felt really scared and, honestly, embarrassed at first. But after the initial, um, shock (I may or may not have shaken my fist at the sky in fury), I felt ready to move forward.
So take a deep breath, and add up your debt. If you don’t know where to start, get your FREE credit report here!
In my FREE Debt Freedom Tracker App, you can track your debt payoff journey with ease. Simply enter your debts, and voilà! You’re ready to go.
Step 2: Redefine What Freedom Means
Have you ever taken the time to sit down and really ask yourself what freedom means to you? I highly doubt it. Most people don’t!
And if you let society decide for you, you probably think freedom means buying whatever you want, whenever you want. Most people aren’t immune to the constant messaging of “when it comes to spending, more is better!” Only too late do you realize what they’re really selling is stress.
When I had $150,000 of student loans to pay off, everyone told me to hang on to my debt for a decade like a pet ferret. And I mean everyone. Except, unlike a pet ferret, I can’t cuddle it and name it Boris.
But I sat down and really thought this through. Was this really the best way to be happy? Sure, I’d have more money in my pocket to spend at Hobby Lobby and in the Anthropologie sale section, but what good would that do me if I were constantly stressed?
The hard truth is that debt follows you everywhere. No matter how far back in the drawer you shove those bills, or how much laundry you pile on top of them, you can never really escape the knowledge that your finances are not where you want them to be.
It was this realization that made me decide to take the road less traveled and actually pay off my debt, and fast! I realized that true freedom wasn’t spending more; it was going to bed without anxiety and waking up with hope. Did I want to look rich or be rich — financially, spiritually, and mentally?
Step 3: Live Like You Are Already Free
I saved the best for last. This is truly the most powerful step in any debt payoff journey: live like you’re already free.
What do I mean by this? Well, to become financially free, the best strategy is to start acting like that version of yourself. What does the debt-free version of you feel like? How does she carry herself? How does she handle her finances?
With $150K of student loans breathing down my neck, I felt like the poster child for financial ruin and total despair. But I made a decision to start pretending like I was already where I wanted to be. Debt-free, at peace, and on top of it! Yes, I am calling for you to embrace delusion!
I started acting organized, peaceful, and intentional with my finances. I budgeted. I saved. I acted now how I would act once I was out of debt. Trust me, where your mind goes, reality follows.
What helped me get into the debt-free mindset (which can feel very far off!) was using different tracking and visualization tools.
First, I made paper chains of debt. Here’s a how-to video! Put your favorite show on in the background and start crafting! I assigned a dollar value to each paper chain, and then every time I paid off a part of my debt, I got the thrill (term used liberally) of cutting off part of the chain! I hung my paper chains up on my bedroom wall, so every day I was reminded of my goal. I would look at it, wince, and then visualize how many chains I’d say goodbye to this month.
I also made a vision board on Canva and set it as my desktop background. I included photos that put me in the state of feeling debt-free. I had pictures of vacations, relaxing on my sofa, and even a “Your balance is paid in full” message. I looked at it every day and imagined what I’d feel like when I was finally free of debt. Soon, it felt less like a dream and more like a plan.
In Conclusion
No matter where you are in your financial journey, mindset matters above everything else. When you feel empowered and motivated, success is inevitable. I know you can do this because I did this! And I don’t have any superpowers (except maybe my encyclopedic knowledge of the Kardashians). Don’t wait to start living the life you deserve!
Get started with my FREE Debt Freedom Starter Kit! It includes all the tools I used to launch my debt-free journey, customizable just for you!
