Breaking the Debt Cycle: A Simple Plan to Pay Off Debt Faster

Saturday, February 01, 2025

Why Paying Off Debt Should Be a Priority

Debt can feel like a never-ending cycle, keeping you from truly getting ahead. While some debt, like a mortgage or business loan, can be useful, high-interest debt (think credit cards and personal loans) can hold you back. Paying it off isn’t just about reducing bills—it’s about freeing up your money for what actually matters. Let’s talk about why getting rid of debt is so important and how you can start making real progress today.

  • More Money in Your Pocket – Every dollar going toward debt is a dollar not going toward savings, investing, or fun. Paying off debt means keeping more of your income.
  • Less Stress, More Peace of Mind – Monthly payments and interest charges add up—not just financially, but mentally. Imagine the relief of being debt-free!
  • Your Net Worth Grows – The less you owe, the more your net worth increases. Instead of paying interest to lenders, you could be building wealth for yourself.
  • More Freedom to Make Big Moves – Want to switch careers, travel, or retire early? Being debt-free gives you the flexibility to make choices based on your goals.

How to Start Paying Off Debt—For Good

1. Know What You Owe

The first step in any debt repayment plan is getting a clear picture of your current financial situation. List out all your debts, including:

  • The total balance owed
  • The interest rate for each loan or credit card
  • The minimum monthly payment
old knight with the words he chose poorly

Seeing everything laid out can be eye-opening, but don’t let it discourage you. The key is to face the numbers head-on so you can create a solid plan. ​If you’re not sure where to start, pull your credit report—it’s free annually from the major bureaus.

2. Pick a Payoff Strategy

There’s no one-size-fits-all approach to paying off debt, but two strategies stand out: the Debt Snowball Method and the Debt Avalanche Method. Choosing the right one depends on your financial personality and what will keep you motivated.

The Debt Snowball Method is all about quick wins. You start by paying off your smallest debt first, regardless of the interest rate. Once that debt is gone, you roll your payment into the next smallest debt, creating a snowball effect that builds momentum. This method works well for people who are motivated by visible progress and love checking things off their list.

The Debt Avalanche Method, on the other hand, prioritizes high-interest debt first, helping you save the most money over time. You focus on paying off the debt with the highest interest rate, regardless of balance size, while making minimum payments on the rest. Once that high-interest debt is paid off, you move to the next highest rate. This method is mathematically smarter because it reduces the total amount of interest you’ll pay, helping you become debt-free faster.

So, how do you decide? If you’re someone who needs motivation and momentum, the snowball method will keep you engaged as you knock out debts one by one. If you’re analytical and focused on saving the most money, the avalanche method is the better choice.

But remember, the best strategy is the one you’ll actually stick with! Even if the avalanche method saves more in the long run, it won’t help if you lose motivation. The key is consistency, so pick the approach that works best for you and commit to it.

3. Cut Expenses & Redirect That Cash

Paying off debt isn’t just about throwing money at balances—it’s about making sure your budget supports your goals. Look at your spending and find areas to cut back:

  • Dining out too often? Try cooking at home more.
  • Subscriptions piling up? Cancel ones you don’t use.
  • Impulse shopping? Try a 24-hour rule before making non-essential purchases

Even small changes—like brewing coffee at home or negotiating lower bills—can free up hundreds of dollars per month. Redirect those savings straight to debt payments for faster results.

4. Boost Your Income & Throw Extra at Debt

If cutting expenses isn’t enough, increasing your income can help speed up debt repayment. Here are some ways to bring in extra cash:

  • Pick up a side hustle like freelance work, ride-sharing, or selling handmade products.
  • Sell things you no longer use—electronics, clothes, or furniture can bring in quick cash.
  • Put any windfalls (bonuses, tax refunds, birthday money) toward your debt instead of splurging.

Even an extra $200 a month can make a huge difference in how fast you become debt-free!

5. Avoid Taking on More Debt

One of the biggest pitfalls when paying off debt is falling back into old habits. To avoid this:

  • Build an emergency fund—Even $500-$1,000 can keep you from reaching for a credit card.
  • Pause unnecessary borrowing—If you’re working to get out of debt, avoid new loans or credit cards.
  • Use cash or debit for spending—If swiping a credit card is tempting, remove it from your wallet.

Think of debt like a hole—you can’t climb out if you keep digging deeper!​

6. Get a Game Plan That Works for You

The best financial plans are personalized to your situation. That’s why having the right tools is so important. I personally use Monarch Money to set up budgets and track my progress. It helps me see exactly where my money is going and how much I can put toward debt each month.

​If you want to try it, click here for a 30-day free trial and take control of your finances today!

Final Thoughts

Getting out of debt isn’t just about fewer bills—it’s about creating options, reducing stress, and building a future you’re excited about. The sooner you start, the sooner you’ll see results.

​​​If you’re ready to take control of your finances but aren’t sure where to start, let’s chat! I’d love to help you create a personalized debt-free plan that fits your goals.

The information provided in this article is for informational purposes only. It should not be considered as financial advice. Please consult with a qualified professional before making any financial decisions.

Disclaimer: David McEntire is an Investment Advisor Representative with and offers advisory services through Provision Asset, LLC, a Registered Investment Adviser in the state of Texas