What to Do If You Have Debt: A Practical Guide to Getting Back in Control

Debt can feel overwhelming — but it doesn’t have to keep you stuck. Whether it’s credit cards, loans, medical bills, or something else, you can take back control of your finances with a clear plan and the right mindset. In this week’s episode of CAPitalize Your Finances, I walk through the exact steps to help you understand what you owe, prioritize what to tackle first, and start building real financial momentum.

Let’s break down the essentials.

1. Start With Clarity: Know Exactly What You Owe

You can’t fix what you can’t see.

Begin by listing every debt you have:

• The balance

• The interest rate

• The minimum payment

• The due date

• Any special terms

Seeing the full picture helps eliminate fear, and it allows you to make informed decisions about what to tackle first.

2. Choose a Payoff Strategy You Can Stick To

Once you know your numbers, use a method that aligns with your personality and goals:

The Avalanche Method

Pay off the highest interest rate first
→ Saves the most money over time.

The Snowball Method

Pay off the smallest balance first
→ Builds confidence quickly.

There’s no “wrong” choice — the best method is the one that keeps you consistent.

3. Build a Budget That Actually Works

A realistic budget gives your debt plan structure.

Focus on:

• Tracking every dollar for 30 days

• Separating needs vs. wants

• Cutting unnecessary subscriptions

• Reducing impulse spending

• Setting aside a small buffer for emergencies

A budget isn’t about restriction — it’s about giving you control.

4. Explore Ways to Boost or Stabilize Your Income

More income can accelerate your payoff timeline dramatically.
Options include:

• Asking for a raise

• Picking up extra hours

• Offering freelance services

• Developing a skill that increases your earning potential

• Selling items you no longer need

The key: small increases add up fast.

5. Consider Debt Consolidation or Negotiation

Depending on your situation, these options can help:

• Consolidating loans into a lower-interest payment

• Negotiating with lenders for better terms

• Refinancing high-interest balances

These tools aren’t magic fixes — but used correctly, they can simplify your plan and reduce stress.

6. Avoid Taking On New Debt

This is the step many people overlook.

Avoid:

• Opening new credit cards

• Transferring balances unnecessarily

• Financing purchases you can’t pay off quickly

• Falling back into old habits

Real progress happens when your debt stops growing — and starts shrinking.

7. Stay Consistent — That’s the True Path to Freedom

Paying off debt takes time. It’s rarely fast, and sometimes it can feel slow.
But stay focused on the progress you’re making and the future you’re building.

Every payment moves you forward.

Want a Step-by-Step Breakdown? Tune In.

If you’re ready for practical, actionable guidance, this week’s episode of CAPitalize Your Finances dives deeper into each of these steps — and shows you how to build a personalized plan that actually works.

🎧 Watch or listen now on Spotify, Apple Podcasts, or YouTube.

Take the first confident step toward becoming debt-free — your future self will thank you.