Debt is one of those things that feels like it’s just part of life. But here’s the truth: it doesn’t have to be. Whether it’s student loans, credit cards, or even payday loans, the weight of debt can feel overwhelming. However, being childfree might give you an edge when it comes to managing your finances—because you’re not juggling the additional expenses that come with raising children. Studies show that childfree individuals tend to carry less debt than parents, giving you a head start in getting ahead financially. So, if you’re ready to take control and eliminate that debt, here’s a roadmap to help you get started.
Why Debt is Dangerous
Debt can feel like it’s not such a big deal at first. After all, you’re getting something you want today, and you’ll pay for it later, right? But here’s the kicker: when you borrow money, you’re essentially promising your future self that you’ll pay it back—plus interest. And that future could involve a lot more financial stress than you might anticipate. Right now, the average credit card interest rate hovers over 20%. If you’re only making minimum payments, it could take years to pay off a balance, all while paying way more than you originally owed.
Then there are the other debts: student loans, payday loans, car loans, mortgages… They all pile up, and none of them are easy to shake off. The idea of student loan forgiveness might be tempting, but you shouldn’t count on it. And payday loans? Those are the worst—interest rates of 50% or more! It’s time to stop the cycle.
Debt is Stealing from Your Future
Debt is like a thief that steals from your future earnings. Each time you carry a balance, you’re giving away your future financial freedom, one interest payment at a time. If you’re serious about getting out of debt, the first step is to make it a priority. Stop using credit cards (lock them if you have to) and stop adding to your balance.
Setting Debt Payoff Goals
Here’s the thing: you won’t get out of debt just by wishing it away. It’s not going to happen unless you actively decide to make it a priority. If you’re serious about being debt-free, you’ve got to treat it like a goal. You wouldn’t expect to just lose weight without making changes to your diet and exercise habits, right? The same goes for debt. Start by creating a plan—know how much you owe, and commit to paying it off.
Dave Ramsey is a popular voice when it comes to debt payoff, and while his “sell everything and stop having fun” approach can be effective, it’s not necessarily sustainable long-term. The real key is finding a balance that works for you—one that allows you to make progress without burning out.
Two Powerful Methods for Paying Off Debt
There are two main approaches when it comes to tackling your debt:
- The Debt Snowball Method:
This is the method that Dave Ramsey swears by. With the debt snowball, you start by paying off your smallest debt first. You make minimum payments on all other debts and throw everything you can at that smallest balance. Once it’s gone, you move on to the next smallest debt, and so on. The beauty of this method is that it creates quick wins early on. That sense of accomplishment keeps you motivated to keep going. - The Debt Avalanche Method:
If you want to save money in the long run, the debt avalanche method might be your best bet. With this method, you start by paying off the debt with the highest interest rate first. While it can feel like you’re not making much progress at first (especially if your highest interest rate debt is also the biggest), you’ll ultimately pay less in interest and reach your debt-free goal faster.
Should You Focus on Paying Off Your Mortgage?
The mortgage is a tricky one. While it’s technically a form of debt, it’s usually tied to a fixed interest rate, unlike credit cards. So it’s often better to focus on paying off higher-interest debt first. Ideally, though, you’ll want your home paid off before retirement, which will help keep your living expenses low when you’re no longer working.
The Freedom of Being Debt-Free
The path to becoming debt-free isn’t always easy, but once you get there, it’s worth it. Imagine waking up every day with no debt hanging over your head. All your money is your money. No interest payments, no stress, just financial freedom. The best part? Once you’re debt-free, you can focus on building wealth and investing, without the looming threat of high-interest debt.
Remember, if you’re paying 20% APR on credit card debt, no investment will give you a return that beats that. So, start with debt payoff—it’s the best investment you can make in your financial future.