Debt can feel like a never-ending weight, dragging you down no matter how hard you try to move forward. For my client Victor, it was more than just a financial burden—it was an emotional one. “I feel like I’m drowning,” he said during our first meeting. “I work so hard, but the debt keeps growing, and I don’t see a way out.”
Victor’s story was one of many I’ve encountered. Like many people, he had taken on credit card debt to cover emergencies, student loans for his education, and a car loan to get to work. The total? A staggering $100,000. He felt hopeless, but I assured him that with a plan, commitment, and patience, we could tackle his debt one step at a time.
Over the next three years, Victor and I worked together to erase that six-figure debt using realistic strategies anyone can apply. Here’s how we did it—and how you can too.
Facing the Debt Monster: The First Step
When Victor first showed me his financial situation, he was reluctant to even look at the numbers. “I know it’s bad,” he said, staring at his unopened credit card statements. Avoiding the problem is common, but the first step to fixing it is facing it head-on.
We started by listing all his debts, including the balances, interest rates, and minimum payments. This exercise was uncomfortable, but it gave us a clear picture of the problem. Here’s what his debt looked like:
$45,000 in student loans with a 6.5% interest rate
$30,000 in credit card debt with an average 20% interest rate
$25,000 on a car loan with a 4% interest rate
Seeing the total was overwhelming, but I reminded Victor that it wasn’t about paying it all off at once—it was about creating a plan and sticking to it.
Step 1: The Debt Snowball Method
To tackle his debts, I introduced Victor to the debt snowball method, a strategy that focuses on paying off the smallest debts first while making minimum payments on the rest. This approach isn’t the fastest or the cheapest, but it builds momentum and motivation.
Victor started by tackling his smallest debt: a $2,500 credit card balance. We found ways to free up $500 a month by cutting unnecessary expenses and increasing his income. Within five months, that first credit card was paid off, and Victor felt a renewed sense of control over his finances.
Step 2: Cutting Costs Without Cutting Joy
One of the biggest challenges Victor faced was reducing his expenses without feeling deprived. Together, we reviewed his budget and identified areas where he could save without sacrificing too much happiness.
Victor loved eating out, so instead of eliminating this entirely, we set a budget of two restaurant meals per month. He discovered he enjoyed cooking at home more than he expected and even found it therapeutic.
We switched his car insurance to a provider that offered better rates, saving $50 a month.
Victor canceled unused subscriptions, like a gym membership he hadn’t used in months, saving an additional $40 per month.
These small changes added up to $300 in monthly savings, which Victor redirected toward his debt.
Step 3: Increasing Income Through Side Hustles
Cutting expenses alone wasn’t enough to make a significant dent in Victor’s debt, so we brainstormed ways to boost his income. Victor had always been good with his hands, so he started offering handyman services on weekends. Within a few months, he was earning an extra $500 to $800 a month.
We also explored passive income opportunities. Victor rented out his spare room on weekends using a short-term rental platform, bringing in an additional $400 a month. “It’s amazing how small efforts can make such a big difference,” he said after his first successful month of side hustling.
Step 4: Refinancing and Negotiating Lower Rates
The high-interest credit card debt was the biggest obstacle to Victor’s progress. To address this, we explored options for reducing his interest rates. Victor applied for a balance transfer credit card with a 0% introductory APR, allowing him to consolidate his balances and avoid interest for 18 months.
He also contacted his student loan servicer and negotiated a lower interest rate by refinancing. This reduced his monthly payment by $100, which he added to his debt snowball.
Negotiating lower rates can feel intimidating, but it’s one of the most effective ways to speed up debt repayment. Victor said, “I never thought I’d have the confidence to call my lenders, but now I feel like I’m in control.”
The Emotional Journey: Overcoming Setbacks
Debt repayment isn’t just a financial journey—it’s an emotional one. Victor faced moments of doubt and setbacks, like unexpected car repairs that temporarily derailed his progress. During these times, I reminded him of the importance of resilience. “Setbacks are part of the process,” I told him. “What matters is how you respond.”
To keep him motivated, I encouraged Victor to visualize his debt-free future. He created a vision board with pictures of the home he wanted to buy, the vacations he dreamed of taking, and the financial freedom he hoped to achieve. “Every time I felt like giving up, I looked at that board,” he said. “It reminded me why I was working so hard.”
Celebrating Milestones Along the Way
Paying off $100,000 in debt can feel like an impossible task, but celebrating milestones along the way makes it more manageable. Every time Victor paid off a debt, we celebrated with a small reward, like a fancy dinner or a day trip. These moments of celebration kept him motivated and reminded him of how far he’d come.
After two years, Victor had paid off his credit card debt entirely. “I can’t believe I’m finally free of this,” he said, tearing up. Seeing his progress gave him the confidence to tackle his remaining debts with even more determination.
Reaching the Finish Line
Three years after we started, Victor made his final student loan payment. The moment he became debt-free was emotional and transformative. “I never thought I’d see this day,” he said. “It’s like a weight has been lifted off my shoulders.”
Victor’s story is a testament to the power of planning, persistence, and patience. What once felt impossible became achievable with the right strategies and mindset.
You Can Do It Too
If you’re struggling with debt, remember that you’re not alone. With a clear plan, small but consistent actions, and the willingness to stay the course, you can achieve financial freedom. Start by facing your debt, creating a budget, and exploring strategies like the debt snowball method or refinancing. Every journey starts with a single step, and your path to a debt-free future begins today.
