If you’re feeling overwhelmed by debt, I want you to know this: you’re not alone, and you’re not stuck. I know what it’s like to dread the next bill, avoid looking at your bank account and wonder how things got this far.
But I also know the way out, and in Budget Right, I share the exact steps that helped me pay off debt and reclaim control over my life and money.
In this post, I’ll walk you through some of the core principles from my book to help you pay off debt faster – and stay debt-free for good.
1. Start with Awareness, Not Avoidance
Before you can fix your finances, you need to face them. That means getting clear on:
- What you owe
Who you owe it to
The interest rates and repayment terms
2. Use the Budget Right Method to Free Up Cashflow
You don’t need to earn more to pay off debt faster, you need to give every dollar a job. When you build a budget that actually works for your lifestyle (and your mental wellbeing), you’ll find money hiding in plain sight.
Action Step: Prioritise your needs over wants, and look at where your money is leaking. Even a few small changes each week can create hundreds of dollars over a year to redirect toward your debt.
3. Use Your Budget Excess to Pay Off Debt Faster
In Budget Right, I teach a budgeting method that splits your income into four key areas:
10% savings
10% giving
10% splash cash
70% for all your expenses
Once you’ve completed your budget, you’ll see whether your expenses fit within that 70%. If they don’t, it’s time for some damage control. But if they do (or even better, if you’re under) that leftover money is your excess. And this excess is the golden key to paying off debt faster.
Action Step: After your expenses are covered, direct every extra dollar of that excess to one debt at a time. Starting with the smallest balance. This strategy builds momentum as you knock off debts one by one, and it’s incredibly motivating to see progress quickly. Once one debt is paid off, redirect that payment amount to the next debt, and keep going!
You won’t need to change your income – just make the most of what you already have by managing it intentionally.
4. Redirect Payments to the Next Debt
Once a debt is paid off, don’t spend the extra cash – roll it onto the next one. This is how you build powerful momentum and eliminate debt faster without changing your income.
Action Step: When one debt disappears, increase the next repayment by that same amount. This stacking effect builds quickly and can shave years off your debt journey. Continue making the required minimum repayments on all other debts while focusing extra payments on the smallest balance.
5. Build a Mini Emergency Fund
Paying off debt without any safety net can lead to relying on credit again. A small buffer – even $500 to $1,000, gives you breathing room when unexpected expenses pop up.
Action Step: Save a little each week into a separate “emergency” account. Think of it as your financial first-aid kit.
6. Work on Your Money Mindset
Debt isn’t just about numbers, it’s often tied to habits, beliefs and emotional triggers. That’s why Budget Right includes tools to help you rewrite your money story, not just your spending habits.
Mindset Shift: You’re not bad with money – you just haven’t had the tools, the knowledge, or the support. But you do now.
7. Track Your Wins and Celebrate Progress
Debt freedom doesn’t happen overnight, but every step counts. Whether you pay off $50 or $5,000, celebrate it. Write it down. Share it with a trusted friend or support group. Progress fuels motivation.
Action Step: Use a visual tracker or journal to record every debt payment. Seeing your balance go down is powerful!
Paying off debt faster isn’t about doing it perfectly – it’s about doing it intentionally. With a clear plan, the right tools and a compassionate approach, you can change your financial future.
In Budget Right: Eliminate Debt and Improve Your Financial and Mental Wellbeing, I guide you step-by-step through budgeting, debt elimination and emotional healing. It’s not just about numbers – it’s about feeling calm, confident and in control again.
You’ve got this – one step at a time.
