When my client James walked into my office, he looked defeated. “Mei Lin,” he said, “I don’t know where to start. My debt feels like a mountain I’ll never climb.” James had accumulated over $100,000 in debt between student loans, credit card balances, and a car loan. Like so many others, he felt overwhelmed and unsure of how to regain control. Debt can be suffocating, both financially and emotionally. But as I told James that day, no matter how big the number looks, there’s always a way forward. Over the next three years, we worked together to tackle his debt one step at a time. James’s journey wasn’t easy, but by the end, he was debt-free and full of pride in what he’d accomplished.
This article will share the lessons James and I learned along the way—lessons that can help anyone facing a similar challenge.
Facing the Debt Reality
The first step to tackling debt is understanding it. James, like many people, avoided looking closely at his financial situation. “I don’t even know how much I owe,” he admitted. Together, we created a complete list of his debts, including balances, interest rates, and minimum payments.
Here’s what we found:
$40,000 in student loans at 6% interest
$35,000 in credit card debt with an average interest rate of 18%
$25,000 on a car loan at 4% interest
Seeing the total—$100,000—was overwhelming for James. “I didn’t realize it was this bad,” he said. But as I told him, understanding the problem is the first step toward solving it.
Start With a Plan
Once we had a clear picture of James’s debt, the next step was creating a repayment plan. I introduced him to two popular strategies: the debt snowball method and the debt avalanche method. The debt snowball method focuses on paying off the smallest debts first, building momentum and motivation. The debt avalanche method prioritizes debts with the highest interest rates, saving money in the long run. James decided to use the avalanche method, starting with his high-interest credit card debt. We created a budget that allowed him to allocate an extra $500 per month toward his credit cards while continuing to make minimum payments on his other debts.
Cut Expenses Without Sacrificing Joy
Paying off debt often requires cutting back, but that doesn’t mean living a joyless life. James was worried that reducing his expenses would feel like punishment, so we focused on finding savings opportunities that aligned with his values.
Here’s what we did:
James loved trying new restaurants, so instead of eliminating this completely, we set a limit of two meals out per month. He canceled three unused subscriptions, saving $45 a month. James also started carpooling with a coworker, cutting his gas costs in half.
These changes allowed James to save $300 a month without feeling deprived. “I still get to enjoy the things I love,” he said. “I’m just more intentional about how I spend.”
Increase Income With Side Hustles
Reducing expenses is only half the equation. To accelerate his progress, James needed to bring in more income. Together, we brainstormed side hustle ideas that fit his skills and schedule. James started by offering freelance graphic design services on weekends, earning an extra $800 a month. He also sold unused items from his apartment on online marketplaces, bringing in another $200. “It feels good to see the extra money adding up,” he said. “It makes me feel like I’m making real progress.”
Negotiate With Creditors
One of the most impactful strategies we used was negotiating with creditors to lower interest rates and monthly payments. James was initially hesitant to make these calls, fearing rejection. But I reminded him that the worst they could say was no—and the potential savings were worth the effort. James contacted his credit card companies and explained his situation. To his surprise, two of them agreed to lower his interest rates, saving him hundreds of dollars in interest over time. He also refinanced his student loans, reducing his monthly payment by $150. “Making those calls was nerve-wracking,” he admitted. “But it made a huge difference in my repayment plan.”
Celebrate Milestones
Paying off $100,000 in debt can feel like an impossible task, so it’s important to celebrate progress along the way. Every time James paid off a debt, we marked the occasion with a small reward. After clearing his first credit card balance, he treated himself to a weekend getaway. “It felt amazing to celebrate my progress,” he said. “It gave me the motivation to keep going.”
Overcoming Setbacks
The journey to becoming debt-free wasn’t without challenges. During the second year of his plan, James faced unexpected medical bills that temporarily derailed his progress. “I felt like I was back at square one,” he said. To recover, we adjusted his budget and paused extra payments for a few months. I reminded James that setbacks are a normal part of the process. “It’s not about being perfect,” I told him. “It’s about staying committed to your goal, even when things don’t go as planned.”
The Day James Became Debt-Free
Three years after starting his repayment plan, James made his final payment. The day he became debt-free was emotional and empowering. “I never thought I’d get here,” he said. “But now that I have, I feel like I can do anything.” James’s journey taught me—and him—that paying off debt is about more than just numbers. It’s about reclaiming your confidence and building a foundation for a brighter financial future.
You Can Do It Too
If you’re struggling with debt, remember that you’re not alone—and there’s always a way forward. Start by understanding your debt, creating a plan, and taking small, consistent steps toward your goal. Whether you use the snowball or avalanche method, cut expenses, or find ways to increase your income, every effort brings you closer to freedom. Debt can feel overwhelming, but with determination and the right strategies, you can break free and create the life you deserve.
