7 Ways To Get Rid of Debt For Good
Are you feeling like debt is a constant cloud hanging over your life?
Do you wonder how you got here and, more importantly, how to get rid of debt for good?
The weight of debt can be overwhelming, especially when you’re over 50 and looking toward retirement or new beginnings.
I’ve been there myself, weighed down by the burden and searching for a way out.
That pivotal moment when I decided to take control of my finances was life-changing, and it can be for you too.
So, if you’re ready to reclaim your peace of mind and enjoy the freedom you deserve, let’s dive into some practical, holistic steps to becoming debt-free for good.
1. Find Your Why – Why Do You Want to Be Debt-Free?
Before jumping into numbers and strategies, knowing why you want to be debt-free is important.
Knowing why you’re doing something is often more powerful than the how or the what.
Simon Sinek’s “Start with Why” emphasizes that understanding your purpose fuels meaningful action. Identifying your reasons for wanting to get rid of debt for good will keep you motivated and focused, especially when the journey gets tough.
For me, the “why” was about peace of mind.
I wanted the freedom to make choices without the constant worry about money. I craved a life where I could travel, explore new hobbies, and enjoy time with loved ones without the guilt or stress that debt brought.
It wasn’t just about the numbers—it was about reclaiming my life and my happiness.
To begin your journey toward financial freedom, start with a journaling exercise:
- Take a quiet moment to journal about your reasons for wanting to be debt-free.
- Ask yourself: “What would a debt-free life look and feel like for me?”
- Write down everything that comes to mind.
- Don’t censor yourself—whether it’s the desire for more freedom, less stress, or being able to help your kids and grandkids without worry, get it all on paper.
Daily Reminders: Keep your “why” visible—whether it’s a sticky note on your bathroom mirror, a note in your wallet, or a daily affirmation you repeat. These small reminders will keep you on track, especially on days when it feels hard to stay motivated.
2. Assess Your Total Debt: Get Clear on What You Owe
Facing your total debt can be daunting, but it’s an essential step. You can’t tackle what you don’t understand.
This step is about honesty and clarity. It might feel overwhelming at first, but remember, it’s just numbers—numbers you can manage and reduce with the right plan.
When I first totaled up my debt, it was a mix of shock and relief. Seeing everything laid out in front of me was overwhelming, but it also felt like I had taken back some control.
It was the wake-up call I needed to get serious about my finances. With every number I wrote down, I felt a little less in the dark and a little more empowered.
Actionable Steps:
- Make a list of all your debts, including credit cards, personal loans, medical bills, and any other outstanding balances.
- Include the interest rates and minimum payments for each. This might feel scary, but remember, it’s just information. And knowing this is the first step toward freedom.
Create a Visual: Use a spreadsheet or a simple app like Undebt.It or Debt Payoff Planner to keep track. Seeing your progress visually, even if it’s just small steps, can be incredibly motivating. Consider making a chart where you can cross off debts as they’re paid—it’s incredibly satisfying to see those lines disappear one by one.
3. Break The Cycle: Stop Adding New Debt
One of the quickest ways to make progress is to stop adding new debt. It sounds simple, but in practice, it requires a shift in mindset and habits.
This is where a lot of people struggle, but committing to stop adding debt is a powerful step toward freedom.
I used to justify small purchases with, “It’s just a little bit, it won’t make a difference.” But those small charges added up quickly, and I realized that I was just treading water.
The first big change for me was deciding to stop relying on credit. It wasn’t easy, but it was necessary.
Actionable Steps:
Freeze Credit Cards: Physically freeze them (yes, in a block of ice if you must!) or store them somewhere out of reach. The less accessible they are, the less likely you are to use them impulsively. If you’re not ready to ditch them entirely, consider deleting saved credit card info from online shopping sites.
Mindful Spending: Before buying something, pause and ask, “Does this align with my goal of being debt-free?” This simple question can help you make more intentional choices. If the answer is no, consider putting it back on the shelf or taking a day to think it over.
RELATED: How To Develop a Positive Mindset After 50
4. Create a Spending Plan
A spending plan—think of it as a friendlier term for a budget—helps you prioritize essentials, debt repayment, and savings.
It’s not about restriction; it’s about clarity and intention.
The goal is to align your spending with your values and goals, so you’re not feeling deprived but rather empowered by your choices.
Budgeting used to feel like a punishment. I avoided it for years because it felt like it was all about what I couldn’t do.
But when I reframed it as a spending plan aligned with my goals, it felt more empowering than limiting.
It became about making choices that supported the life I wanted, rather than about saying no to things I loved.
Actionable Steps:
- Start with Essentials: Outline your must-haves—housing, food, transportation, and minimum debt payments. Then, look at what’s left and allocate it towards extra debt payments, savings, and discretionary spending.
- Use Cash Envelopes: Try the cash envelope method for variable expenses like groceries or entertainment. It’s a tactile way to stay within limits without feeling overly restricted. Physically handing over cash can make you more aware of your spending and help keep it in check.
- Weekly Money Dates: Set a time each week for a quick financial check-in. Adjust your plan as needed—life isn’t static, and neither should be your spending plan. These weekly check-ins can be a simple review of what went well and what might need tweaking for the next week.
5. Understand How Credit Works
Credit can be confusing, but understanding it is key to using it wisely and avoiding pitfalls. This step is all about education and empowerment.
Knowledge is power, especially when it comes to managing your finances.
Early on, I didn’t fully grasp how interest rates worked, and it cost me. I assumed paying the minimum was enough, but it wasn’t making a dent in my balances.
Learning about credit scores, how interest accumulates, and how to improve my credit health was eye-opening—and it changed how I approached my debt.
Actionable Steps:
- Educate Yourself: Dive into resources that explain credit scores, interest rates, and how they impact your debt. Knowing how to manage your credit effectively can save you a lot of money and stress. Look for free courses, articles, or even YouTube videos that break down the basics.
- Set Alerts: Use account alerts for due dates, spending limits, and balance updates. These reminders help you stay on top of your credit health and avoid late fees. Keeping your credit in check not only helps with debt but also opens up better financial opportunities in the future.
6. Visualize Your Debt-Free Life
Visualization is a powerful tool that keeps you connected to your goals. It’s more than just wishful thinking—it’s about mentally rehearsing the life you’re working towards.
When you can see and feel your debt-free future, it becomes more real and more achievable.
I created a vision board filled with images that represented my debt-free future—like travel destinations, peaceful home spaces, and moments of joy with my family. I did this on Pinterest so it was even easier!
Every time I looked at it, I felt motivated to keep going. It was a constant reminder of why I was doing this and what was waiting for me on the other side.
Actionable Steps:
- Create a Vision Board: Gather images, quotes, and other visuals that represent your debt-free life. Place it somewhere you’ll see it daily, like your office or bedroom. It doesn’t have to be fancy—just meaningful to you.
- Daily Visualization Practice: Spend a few minutes each morning visualizing your debt-free life. Picture how you’ll feel, what you’ll do, and who you’ll become. This practice can make your goals feel more tangible and achievable. It’s like giving your mind a taste of the future you’re working toward.
7. Be Inspired
Staying inspired is crucial for maintaining your momentum. Surround yourself with positive influences that remind you why this journey is worth it.
Find those little boosts of motivation that keep your spirits high, whether it’s a book, a podcast, or a community of like-minded individuals.
I found inspiration in books and podcasts from others who had paid off debt. Hearing their stories made me feel less alone and showed me that becoming debt-free was possible, even when it felt far off.
One of my favorite podcasts shared real stories from people who had been where I was—and their successes kept me going.
Find Your Inspiration:
- Seek out books, blogs, or podcasts that resonate with you. Look for those that speak to the challenges and triumphs of debt-free living, especially from women over 50
- Some popular resources include “So Money” or the “Afford Anything” podcast, which offer both practical advice and motivational stories
Conclusions:
Becoming debt-free is a journey, not a sprint. There will be ups and downs, but every step forward brings you closer to financial freedom and peace of mind.
Start with one small step today—whether it’s finding your why, totaling your debt, or creating a spending plan.
You’ve got the power to take control of your finances and live the debt-free life you deserve.
Remember, it’s never too late to start, and every effort counts.
Financial freedom is not just about money; it’s about living life on your terms.
Stay focused, stay inspired, and keep moving forward. You’ve got this!”
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These are some great tips for helping get rid of debt! I’m the type of person who only has a credit card for emergencies or big purchases but I know a lot of people struggle so having this guide is great
Ash 🙂
Thanks, Ashleigh! You have a great money mindset, that’s for sure!
I’ve found that knowing your why is SO important when paying off debt. It is also so important to stop adding to your debt. Great post!
Debt is a pesky creature that has the ability to eat a person alive in my opinion. All these tips that you’ve recommended in this post on getting rid of debt can be applied practically. Awesome read!
Thank you for this post. I am always looking for ways to get out of debt
I enjoyed reading lots of your articles, very helpful advice.
This is such a great post. I have been there, and it was harsh on me. Thank you for sharing this, because I think people need to understand the credit card game.
This is very timely advice for me. I am trying to get rid of debt to have more peace of mind leading up to retirement. Great advice – thanks for sharing!
What great advice! I love that you included actionable steps throughout. Nice post!
This is a serious problem for a lot of folks. Your post is detailed and beneficial.
Your post is such a practical and encouraging guide for anyone looking to tackle debt! I love how you break it down into actionable steps that feel doable and empowering. Definetly taking some tips for myself
This year, I made it my mission to get completely out of debt. I thought I had all the bases covered, but one of the things I never considered was podcasts. Thank you for a great tip!