Start Here When Paying Off Debt

The first step to getting out of debt is facing it: logistically and emotionally. Because debt doesn’t just exist on paper. It lives in our bodies. 👀

For a lot of us, even thinking about debt sets off a stress response—tight chest, racing thoughts, that instinct to avoid or shut down. And that makes sense. Our nervous systems are wired to react to threats, and when money feels uncertain or out of control, our brains don’t always know the difference between a credit card bill and a bear in the woods. 

But this is where the shift begins. Debt isn’t a threat you have to run from. It’s just numbers, and numbers can be worked with. When you sit down and actually look at your balances, your interest rates, and your minimum payments, you start showing your nervous system, “Hey, we’re safe. We’ve got this.” That’s when you start to take your power back. That’s when you can make a plan. 

So let’s do this.

Step 1: List Out All Your Debts

Open a new Google Sheet, or notes app, or your journal. Write down the name and balance of every debt you owe—credit cards, student loans, medical bills, personal loans, all of it. This is your starting point.

Example:

Chase Freedom Flex (Balance $4292)

Student Loan (Balance $18,474)

Personal Loan (Balance $8280)

Step 2: Write Down the Minimum Payments

Next to each debt, jot down the minimum monthly payment. These numbers are your baseline—what you need to keep each account in good standing.

Example:

Chase Freedom Flex (Balance $4292 / Minimum payment $107)

Student Loan (Balance $18,474 / Minimum payment $89)

Personal Loan (Balance $8280 / Minimum payment $345)

Step 3: Add the Interest Rates

Find and record the interest rate for each debt. This is key to creating a payoff strategy that can actually save you money in the long run. If you can’t find this on your credit card statement, call your bank and ask them to look at your account and tell you. 

Example:

Chase Freedom Flex (Balance $4292 / Minimum payment $107 / 18.9% interest)

Student Loan (Balance $18,474 / Minimum payment $89 / 4.3% interest)

Personal Loan (Balance $8280 / Minimum payment $345 / 10.5% interest)

Step 4: Check Your Credit Score

You can use Credit Karma, AnnualCreditReport.com, or even your credit card statement. This number is just data and is important in determining if opening a balance transfer card might be a good move in your debt repayment plan. 

Step 5: Put It In Your Budget

These debts don’t live in a vacuum. They’re part of your financial ecosystem. Add the minimum payments into your monthly budget. Once the minimums are in your budget, you can see how much additional money you can put toward debt each month. Starting with one debt, add extra money to that one debt, and pay that amount until that first debt is paid off.

Example: Personal Loan minimum ($345) + $100 extra = new monthly payment of $445

Finally, automate your payments so you’re never late or questioning, “Did I do that?”  Then, you can actually start making informed decisions and see progress.

If you're ready to get organized but don’t know where to start, grab our budget templates. They’re designed to help you build a clear plan, track your numbers, and finally feel in control of your money.