You’re staring at the numbers. Maybe it’s a credit card statement, a stack of bills, or a bank account that looks more like a countdown to disaster. It’s overwhelming, frustrating, and—let’s be honest—kind of terrifying. But here’s the truth: the hardest part of getting out of debt isn’t the budgeting, the side hustles, or even the sacrifices.
The hardest part is facing it.
That’s right. The first step to getting out of debt is a reality check—an honest, no-BS assessment of where you stand financially. You can’t fix a problem if you don’t know exactly how bad it is. And yeah, it might sting a little. But once you rip off the Band-Aid, you can finally start making real progress.
Step 1: Face the Numbers Head-On
If you’ve been avoiding looking at your bank statements or only making minimum payments without checking the balances, you’re not alone. But denial won’t make the debt disappear. So, take a deep breath and gather all your financial info:
- Every credit card balance
- Student loans
- Car loans
- Personal loans
- Medical bills
- Any other debts lurking in the shadows
Now, write down:
- The total amount you owe (yes, it might be scary, but it’s just a number).
- The interest rates on each debt (this is where the real pain is hiding).
- The minimum payments required on each.
This is your starting line. And you can’t win the race if you don’t know where the starting line is.
Step 2: Shift Your Mindset from Fear to Action
Debt isn’t a life sentence. It’s a math problem. And math problems can be solved.
Once you’ve got your numbers in front of you, your brain will probably start screaming:
- “How did I let it get this bad?”
- “There’s no way I can pay all this off.”
- “I’m stuck forever.”
Nope. Not true. The reason you feel overwhelmed isn’t the debt itself—it’s the uncertainty. But now you know exactly what you’re dealing with, which means you can create a plan.
If you owe $50,000, $20,000, or even just $5,000, the process is the same:
- Make a plan (we’ll talk about the Debt Snowball vs. Avalanche next).
- Take it one step at a time (you don’t have to pay it all off today).
- Keep moving forward (even when it feels slow).
The people who get out of debt aren’t the ones who win the lottery. They’re the ones who decide enough is enough and start making consistent changes.
Step 3: Identify Your First Small Win
A win—any win—will give you the momentum to keep going. So, find one small victory you can claim today.
- Can you cut out one unnecessary expense (subscriptions, eating out, impulse buys)?
- Can you sell something right now to put $50 toward your smallest debt?
- Can you call a credit card company and ask for a lower interest rate?
These small steps might not feel like much, but they add up fast. And more importantly, they give you control over the situation. Debt feels overwhelming when it controls you. But when you start making moves—even tiny ones—the power shifts.
What’s Next?
This is just the beginning. Now that you’ve faced your debt, here’s what to do next:
- Decide on Your Payoff Strategy – Snowball or Avalanche (we’ll cover that in the next article).
- Cut One Expense This Week – Start small. Momentum matters.
- Set a Mini Goal – Pay off a $500 credit card? Save $1,000 for emergencies? Pick something achievable.
You don’t have to do it all at once. You just have to start.
So, are you in?