When debt feels overwhelming, it can be hard to imagine how any general one-size-fits-all advice can lead to financial freedom. Financial therapists suggest that a relationship with money is emotional and behavioral, but becoming debt-free is not far from reach if you make your own path.
A good starting point is to acknowledge and normalize your feelings around debt, according to Dr. Christine Hargrove, a certified marriage, family and financial therapist who serves as assistant director of the Love and Money Center at the University of Georgia, which offers clinical training, client services and outreach programs. A key is to recognize that debt is temporary and not absolute or final.
That temporary state can get shorter with one small proactive action followed by another. Whether it’s checking card balances, downloading a tracking app, or reading debt-payoff success stories, what matters most is starting and maintaining.
Here are strategies from therapists to sustain your debt-payoff journey.
1. Create comfort rituals
Consider those things that have helped you cope with prior stressful situations. It might be a cup of hot chocolate or tea, or a reward to look forward to at the end, Hargrove says. A simple ritual won’t erase debt, but it can make tough financial tasks more manageable.
2. Designate a support buddy
Hargrove suggests enlisting a “body double” — a friend who joins you via phone, video or in person while you work through a task. A money-savvy buddy can also offer encouragement and practical advice along the way.
3. Organize your time and approach
Decide how much time to devote to your goals. Even five minutes daily can contribute to progress.
Break tasks into manageable steps:
Choose your debt-payoff tracker
Stay encouraged by tracking debt based on your preferred method, whether it’s spreadsheets, bullet journals, downloadable printables you can color in at every milestone, or something else. Also, track your budget with an app, spreadsheet or other option that will keep you aware of every expense.
“The more you engage in it, the more motivated you are to stay with it,” says Simi Mandelbaum, CEO and founder of Prospr Financial Wellness, a financial therapy and coaching service.
Quantify the debt
Pull your credit report for free at annualcreditreport.com or log into your accounts to get a list of your debts, minimum payments and/or interest rates assessed.
“It can be comforting to feel like, ‘OK, there’s [not another] boogeyman in the closet, right?'” Hargrove says. “We have now turned on all the lights.”
Create or update your budget
Review your expenses, debit and credit card statements to understand costs and trim where needed, or switch to less pricey alternatives. Redirect any savings to an emergency fund and debt payments.
4. Decide on a strategy
Set a debt-payoff deadline based on a realistic monthly amount you can pay toward balances.
Also consider these moves to save time and money:
Lower your interest rate: Depending on your credit scores or circumstances, you might qualify for ways to lower high-interest debt with a balance transfer credit card, a credit card hardship plan, a debt management plan at a nonprofit credit counseling agency, a consolidation loan or a different option.
Pick the avalanche or snowball method: If you have multiple debts, decide whether to target the smallest balance first (the snowball) for quick wins, or the highest-interest debt (the avalanche) for maximum savings. Keep up minimum payments on all other debts to protect your credit.
Stop using credit: Temporarily switch to cash or a debit card if you must.
If money is tight, try to supplement your income with enjoyable work, or consider a lifestyle change like moving, getting a roommate or downsizing.
5. Build an emergency fund along the way
Avoid cycling back into debt by building an emergency fund for unexpected costs while you pay down existing balances. Initially, that might be easier to do with the snowball method.
“Don’t feel like you have to do one or the other,” says Nathan Astle, a certified financial therapist at Beyond Finance, a debt consolidation company. Even if one of your balances is small, “just getting that off your plate would feel like a start,” he says.
An emergency fund, too, can start small. Even a safety net of just a few hundred dollars can help. Eventually, shoot for three to six months’ worth of living expenses.
6. Celebrate milestones and leave room for improvement
You don’t have to wait until you’ve fully paid off debt to celebrate or treat yourself. Reward small milestones with something of value that won’t break the bank. It could be quality time with family, self-care or something else.
“Small incremental rewards are usually better for us than one big thing after all of it is figured out,” Astle says.
Expect setbacks along the way as you’re building new habits and navigating unexpected changes or circumstances.
“What you’re actually changing is behavior,” Hargrove says. “The more that you apply the intention and correct as you go, then it starts to become habit.”
Mandelbaum suggests writing down a list of challenges you’ve overcome as a reminder you can do it again.
“When I have a setback, that’s my list I go to, and then I look and say, ‘Yup, I’ve had something like this happen to me and look, it worked out,’” she says.
7. Talking to yourself can help. Really.
Envision yourself in the short-term future being grateful for decisions made now. Hargrove suggests talking out loud to yourself when you’re making a choice to help your goals. Say something like, “Future [insert your name], today I’m not going to spend on dining out (or a different expense), I’m staying on budget for you.”
When you later review your progress, say something like, “Past [insert your name], you really watched it this month, that was awesome, and I really appreciate it.”
It might sound silly, but self-talk can help change behaviors and inch you closer to your goals, according to Hargrove.
“It sets up a really positive loop that helps motivate and sustain the behavior change,” she says.
