Debt Management: Step-by-Step Guide to Breaking Free from Debt

2. Good Debt and Bad Debt

The distinction between good debt and bad debt fundamentally changes your debt elimination strategy and financial outcomes.

The common assumption that all debt is harmful oversimplifies the reality. Some debt actually builds wealth, while other debt actively works against your future. The foundation for making smart debt decisions is understanding this crucial distinction. Before you prioritize which debts to tackle first, you need clarity on which debts are worth carrying strategically and which ones are designed to drain your resources. Here’s what you’ll explore in this section:

• What Makes Debt “Good”?: Some debt can lead to financial freedom
• What Makes Debt “Bad”?: High-interest consumer debt drains your resources
• The Blurry Lines: Why context determines if debt works for or against you

What Makes Debt “Good”?

Good debt is an investment—it’s money you borrow to purchase something that will grow in value or generate future income. Consider:

• Mortgages: You’re building equity in an appreciating asset
• Education loans: You’re investing in skills that increase earning potential
• Business loans: You’re financing income-generating ventures

Good debt typically has:

• Lower interest rates (3-7%)
• Long repayment timelines (allowing lower monthly payments)
• Clear wealth-building potential

Taking out a student loan for a degree that increases your earning power from $35,000 to $65,000 per year represents good debt working in your favor. Your personal debt plan should acknowledge the distinction.

What Makes Debt “Bad”?

Bad debt finances consumption—you’re borrowing to buy things that lose value quickly and don’t generate income. This includes:

• Credit card purchases: Especially for everyday items or experiences
• High-interest personal loans: For vacations, furniture, electronics
• Car loans for expensive vehicles: That depreciate rapidly

Bad debt multiplies: borrowing $5,000 on a credit card at 20% APR with minimum payments means paying nearly $7,000 total while that $5,000 purchase depreciates to worthless.

Data from late 2024 shows that U.S. consumer credit card debt surpassed $1.16 trillion. The average credit card balance was $6,730, and more than half of cardholders did not pay off their full balance each month, leading to growing interest costs and financial strain. (Source)

The Blurry Lines

What research has shown is that context matters enormously. That auto loan could be “good debt” if the vehicle is used for business, generating income. Or it could be “bad debt” if it’s financing a luxury vehicle purely for status. Before adding any debt ask yourself: Is this debt building my future or stealing from it? That’s the litmus test for categorizing any borrowing you’re considering.

Even “good debt” can become problematic if not managed properly. A mortgage is sound debt—until you’re overleveraged and a job loss threatens everything. The best debt is one you can manage comfortably within your current financial reality.

Recommended reading: “The Richest Man in Babylon” by George S. Clason provides timeless wisdom on distinguishing between productive and unproductive borrowing, helping you understand which debts to prioritize in your debt management strategy.

3. Understanding Your Debt

Creating a complete and honest assessment of your debt situation transforms vague anxiety into actionable clarity.

Creating a complete and honest assessment of your debt situation transforms vague anxiety into actionable clarity. Before escaping debt, clarity is essential. Many people avoid this step because facing the full picture feels overwhelming—yet that clarity is exactly what transforms shame into power.

Without seeing the complete picture, your efforts remain scattered and your progress invisible. Here’s what you’ll accomplish in this section:

• Create Your Complete Debt Inventory: List every debt, balance, rate, and minimum payment
• Calculate Your Debt-to-Income Ratio: Know where you stand financially
• Understand the True Cost of Your Debt: See the real interest you’ll pay
• Assess Your Overall Financial Health: Look at the complete picture beyond debt

Create Your Complete Debt Inventory

You can’t manage what you don’t measure. Get a clear picture by listing:

• Creditor name: Who do you owe money to?
• Total balance: How much do you owe right now?
• Interest rate (APR): What percentage are you paying?
• Minimum payment: What’s the lowest required monthly payment?
• Type: Secured or unsecured? Good or bad?

Create a table to list all your debts and organize them by interest rate (highest to lowest), this becomes your roadmap for choosing your repayment strategy:

Calculate Your Debt-to-Income Ratio

Use this formula to understand how what is your debt to income ratio:

Monthly debt payments ÷ Monthly gross income = Debt-to-income ratio

For example: If your monthly debt payments total $1,500 and your monthly income is $5,000, your ratio is 30% ($1,500 ÷ $5,000). Once you have worked this out you can see where you are and understand what effort you need to achieve to become debt free.

Understand the True Cost of Your Debt

Many people underestimate the real cost of their debt. A $5,000 credit card balance might not seem overwhelming, but with high interest rates and minimum payments, you could end up paying 75% more—or even doubling the total cost—over time. Recognizing this hidden expense is the first step toward making smarter, faster repayment decisions.

You have paid back 75% more than what you have initial received. That $3,741 extra represents money that could have built a future instead. This reality illustrates why understanding how interest rates is important and why strategies for paying off credit card debt matter so much.

Assess Your Overall Financial Health

Beyond listing all your debt, examine your monthly income, expenses, cash and credit score:

• Monthly income: All sources combined
• Monthly expenses: Fixed costs (rent, insurance) plus variable spending
• Cash position: Emergency fund available?
• Credit score: Impacts your ability to refinance or negotiate

This comprehensive view reveals something critical: Can you actually afford to accelerate debt payments, or do you need to build breathing room first? Different situations require different approaches.

Related topics: Ready to create a comprehensive plan? Check out budgeting for debt and financial planning fundamentals to build a complete picture of your situation.

4. Choosing a Repayment Strategy

The repayment strategy you select matters far less than your commitment to executing it consistently month after month.

The most effective strategy is the one you’ll actually maintain. Your debt management strategy must align with your personality and motivation patterns. Here’s what you’ll decide in this section:

• The Snowball Method: Attack smallest debts first for quick psychological wins
• The Avalanche Method: Target highest-interest debt to minimize total interest paid
• Hybrid Approach: Combine both strategies for balance
• Setting SMART Debt Payoff Goals: Create specific, measurable targets

The Snowball Method

• How the debt snowball method works: Pay minimums on everything, then pay more on the smallest debt first—regardless of interest rate. Once that smallest debt hits zero, then roll into the next debt, creating momentum. It’s called the snowball because it grows as it rolls downhill.
• The psychology behind this approach: Research shows that early wins significantly boost motivation and commitment to long-term goals. Paying off the first small debt creates psychological momentum that sustains effort through subsequent debts.
• Best for: People who need quick wins to stay motivated, those with emotional resistance to debt, anyone struggling with consistency.
• The trade-off: You might pay more interest overall because you’re not prioritizing high-rate debt.

The Avalanche Method: Attacking High-Interest Debt Head-On

• How the debt avalanche method works: Pay minimums on everything, then attack your highest-interest debt first. This is mathematically superior—you minimize total interest paid.
• Best for: Mathematically-minded people, those with strong discipline, anyone where interest savings matter significantly to their financial freedom after debt.
• The trade-off: Psychologically? It can feel like pushing a boulder uphill for months before that first victory. Slower wins can lead to burnout if you’re not intrinsically motivated.
• Here’s what most financial advice gets wrong: It assumes everyone responds to motivation identically. The reality is different: the most effective debt management strategy is one that will be consistently executed.

Hybrid Approach: The Best of Both Worlds

What if you combined elements of both strategies? You could tackle your smallest debt and your highest-interest debt strategically based on the gap. For example: You have a $800 medical bill at 0% and a $3,000 credit card at 22%. You could demolish that medical bill in one month for the psychological win, then attack the credit card with full force. This balance between strategy and psychology often works best in practice for managing debt effectively.

Setting SMART Debt Payoff Goals

Once you choose your debt repayment strategy, make it a SMART Goal. This is where your personal debt plan becomes actionable:

• Specific: “I will pay off my $3,200 credit card” (not “get out of debt”)
• Measurable: “I will contribute $400 extra per month” (quantifiable)
• Achievable: Can you actually find $400/month in your budget?
• Relevant: Does this align with your broader financial goals?
• Time-bound: “I will eliminate this debt in 8 months” (deadline creates accountability

Write these down and review them monthly. The act of writing creates clarity, and clarity drives action.

5. Boosting Income, Cutting Costs

The combination of increasing income and reducing expenses creates exponential acceleration toward debt freedom that neither strategy alone can achieve.

A fundamental principle of debt elimination states that one cannot cut expenses alone, nor can earnings alone resolve debt without reduced spending. True acceleration emerges only from combining both strategies simultaneously. Here’s what you’ll master in this section:

• The Income Side: Negotiate raises and explore side income streams
• The Microsaving Multiplier: Turn small actions into significant monthly momentum

The Income Side

This is where the real acceleration happens. Your primary job is typically your biggest financial lever. Increasing income by even $500/month accelerates your payoff timeline dramatically.

Negotiate a Raise

Contrary to common belief, asking for a raise isn’t uncomfortable—avoiding it is. Here’s how:

• Research salary standards for your role and experience level
• Document your specific contributions and value
• Schedule a dedicated conversation (not a hallway chat)
• Ask for a specific number, not a range
• Be prepared with a timeline for reconsideration if declined

Employers expect this conversation. Hesitation doesn’t protect anyone—it just leaves money on the table.

Side Projects

The gig economy offers unprecedented opportunity for additional income:

• Freelancing: Writing, programming, consulting (5-20 hrs/week can generate $200-800/month)
• Sharing economy: Ride-sharing, task services, rentals
• Online sales: Dropshipping, Etsy, Amazon, etc
• Passive income: Dividend investments, digital products, affiliate marketing

Side hustles should accelerate debt payoff, not replace your financial foundation. Be careful not to have lifestyle creep, where your life expenses increase as your income grows, undermining your progress toward becoming debt-free.

The Expense Side

This is where you find hidden money. Research shows that individuals commonly underestimate spending leaks. When spending is tracked for 30 days, most people discover $100-500 in monthly “leakage” they hadn’t previously recognized. This represents opportunity in your budgeting for debt strategy.

Identify Subscription Creep

Review your monthly and annual bank and card statements to identify:

• Streaming services you don’t watch
• Gym memberships unused
• Apps with recurring charges
• Software trials you forgot to cancel

Canceling subscriptions you don’t use can free up money instantly, which is just eliminating waste from things you are not using.

Negotiate Recurring Bills

Calling companies to negotiate is awkward, but highly effective in reduces expenses:

Average result: $50-150/month in savings. Takes 30 minutes of discomfort.

Behavioral Spending Changes

Sometimes small shifts create significant results:

• Cook at home instead of eating out (saves $8-15 per meal)
• Use a 48-hour rule before non-essential purchases
• Unsubscribe from marketing emails (reduces impulse spending)
• Use cash for discretionary spending (you “feel” it differently)

The Microsaving Multiplier

Small actions compound. Consider:

• Round every purchase to the nearest $10, put the difference toward debt
• Save your daily change in a jar, apply monthly to debt
• Every time you skip a planned purchase, put that money toward debt

The long-term impact of microsaving: These small actions create psychological reinforcement. Consistent small wins strengthen one’s identity as someone capable of managing money effectively, which sustains bigger changes over time. This proves essential to managing debt effectively long-term.

Explore more: Learn about balancing ambition with wellbeing to ensure your debt payoff strategy doesn’t sacrifice your mental health in the process.

6. Lowering Your Interest Payments

Reducing your interest rate often saves more money than months of expense cutting or side income efforts combined.

Among the most powerful debt management tools available, reducing interest rates often proves more effective than expense cuts or income increases alone. Even a 3-5% rate reduction on substantial balances can save thousands in long-term payments. Here’s what you’ll learn in this section:

• Understanding Credit Scores: What determines your interest payment rates
• Refinancing: Learn when refinancing actually saves money
• The Art of Negotiating with Creditors: Understand what you can request and how to ask
• Balance Transfer Cards: Master this tool while avoiding its traps

Understanding Credit Scores and What They Control

The credit score directly determines available lending rates, here’s the breakdown:

Your Credit score breaks down as follows: 35% comes from payment history, 30% from credit utilization, 15% from length of history, and 10% from new inquiries. Most individuals can improve their score 50-100 points within 3-6 months with intentional action.

How to improve your credit score:

• Pay on time, every time: This is 35% of your score. One missed payment can drop you 100 points
• Lower credit utilization: Keep balances below 30% of credit limits (this is 30% of your score)
• Keep old accounts open: Length of credit history matters (15% of score)
• Minimize new credit inquiries: Each inquiry drops you slightly (10% of score)

Refinancing: Playing the Rate Game

Refinancing involves replacing an existing loan with a new one—ideally featuring better terms. However, refinancing fees can eliminate potential savings, making calculation essential before proceeding.

Refinancing makes sense for:

• Mortgages: If rates dropped 0.5-1% since you borrowed
• Student loans: Especially private loans at high rates
• Auto loans: If your credit improved significantly since purchase

Be aware of additional costs in refinancing. If fees are $500 and you’d save $50/month, you need 10+ months of savings just to break even. Calculate true saving using this simple formula: Monthly savings from lower rate × Remaining loan term – Refinancing fees = True savings

The Art of Negotiating with Creditors

Creditors typically prefer working with borrowers to receiving nothing through collections or bankruptcy. This understanding provides leverage in negotiations.

When you can negotiate:

• Account recently in good standing but now struggling
• Good payment history on this particular debt
• Competition exists (they know you could switch)

What you can request:

• Lower interest rate: “I have a balance transfer offer at 8%. Can you match that to keep my business?”
• Hardship plan: Temporary rate reduction during financial difficulty
• Settlement offer: For severely past-due accounts, sometimes they’ll accept 60-70% of balance

Have your proposal ready before calling. Uncertainty signals you haven’t done your homework.

Balance Transfer Cards: Powerful but Dangerous

Balance transfer cards offer promotional 0% or low interest periods —a legitimate tool if employed correctly. However their are drawbacks:

• Transfer high-rate debt to 0%, buy yourself time to pay principal, but people can be tempted to use this extra credit.
• Transfer fees (typically 3-5%), tendency to carry the old card and accumulate new debt, penalty rates if you miss a payment.
• Formula, new debt balance + 5% transfer fee = amount to eliminate before promotional period ends. If you can’t do it, don’t start.

But when employed strategically with discipline and planning? Balance transfers can accelerate payoff timelines by 18-24 months. The critical factor is maintaining discipline throughout the promotional period.

7. Staying Motivated and Focused

Your ability to maintain momentum through months of incremental progress determines whether you reach debt freedom or abandon your plan.

Around month four or five of debt repayment, the initial drive typically fades. Progress feels slow, which is precisely where most abandonment occurs. Staying focused represents the differentiator between those who successfully escape debt and those who don’t. Here’s what you’ll implement in this section:

Visualization: Use mental imagery to activate your brain’s reward systems
Celebrating Milestones: Understand why your brain needs reinforcement along the way
Building Your Support System: Learn how accountability and community sustain effort

Visualization: Making Your Future Real

Neuroscience research demonstrates that vivid mental imagery activates similar brain regions as actual experience. This psychological principle applies powerfully to financial goal visualization.

Debt-Free Visualization Practice

Spend 5 minutes daily to imagine your life completely debt-free:

• Close your eyes and imagine your future debt-free
• Picture the freedom to make choices based on desire, not obligation
• Visualize what you’d do with money currently going to debt

This practice is not about magical thinking. Evidence shows that deliberate visualization literally rewires brain reward systems to pursue goals more persistently.

Write to Your Future Debt-Free Self

Manifest your debt free future, by writing a letter describing:

• How it feels to be debt-free
• What changed in your life
• What you’re proud of accomplishing
• What your future self wants to tell your current self

Read this letter when motivation dips. Your future self becomes real and motivating.

Celebrating Milestones: Why Small Wins Matter

Don’t save celebrations for the finish line. Your brain needs reinforcement along the way.

Create a visual debt tracker:

• Debt thermometer: Physical chart showing payoff progress
• Progress app: Digital tracking that shows momentum
• Spreadsheet: Monthly updates showing debt declining

The act of watching debt decrease, even incrementally, creates psychological momentum. You can almost feel the weight lifting as that number goes down.

Reward yourself for hitting your milestones:

• Inexpensive meal at a favorite restaurant (something simple but rewarding)
• Low-cost experience you wouldn’t normally do (cinema, treat from your favourite bakery)
• Free activity you enjoy (walk in the countryside)

The reward yourself doesn’t have to be elaborate, but acknowledging the victory enables our brains to understand that this effort matters.

Building Your Support System

Social support significantly increases goal achievement rates. Isolation intensifies struggle while connection sustains effort. Ways to build your support system:

• Find an Accountability Partner:  Someone also pursuing financial goals (doesn’t have to be debt-specific). Monthly check-ins where you report progress create social accountability.
• Join communities: Join local or online communities. Share your own experiences, observe others’ strategies and successes , learn approaches you had not previously considered.
• Consider a Financial Mentor or Coach: Someone who’s successfully navigated debt payoff can provide perspective, strategy, and most importantly—belief that it’s possible.

8. How to Avoid New Debt

Preventing new debt while eliminating existing obligations requires deliberately building protective financial habits and safety nets.

A significant paradox emerges during debt payoff: while paying off existing obligations, new debt can undermine all accumulated progress. This section addresses building protective habits that safeguard advancement:

• The Emergency Fund: Build a safety net that prevents crises from becoming debt
• Develop Healthy Financial Habits: Create sustainable practices that protect your progress long-term
• Address Emotional Spending Triggers: Recognize stress patterns and develop alternatives
• Insurance: Protecting your financial Pprogress from catastrophic events

The Emergency Fund: Your First Financial Safety Net

Financial research reveals that individuals without emergency savings are significantly more likely to resort to credit when unexpected expenses occur, making the emergency fund your most critical debt-prevention tool. When unexpected expenses hit—car repair, medical bill, job interruption—without an emergency fund, most people reach for credit cards. Suddenly old debt patterns repeat.

How to build an emergency fund:

• Stage 1 (Month 1-3): Build $1,000 starter fund—this prevents small emergencies from becoming debt
• Stage 2 (During debt payoff): While paying debt, slowly build to 1 month of expenses
• Stage 3 (After debt-free): Build to 3-6 months of expenses

The emergency fund paradox: It appears to slow debt repayment. Actually, it accelerates it by preventing derailment. A $3,000 emergency forcing $3,000 back onto credit cards erases months of repayment progress, making the emergency fund essential to staying debt-free.

Develop Healthy Financial Habits

It’s essential to develop healthy financial habits to stay debt-free in the long-term:

• Live below your means: Spend less than earned, always
• Use cash or debit: This can help curb overspending compared to credit
• Implement waiting periods: Wait 48 hours before non-essential purchases
• Budget regularly: Review and adjust budgets monthly
• Prioritize savings: Direct payments to savings and debt before discretionary spending

These habits extend value far beyond the debt repayment period, supporting long-term financial health.

Address Emotional Spending Triggers

Psychological research identifies stress, boredom, and social pressure as common emotional spending triggers. Recognizing personal triggers enables development of alternative coping mechanisms.

• Recognize triggers: Stress, boredom, social pressure, or other patterns?
• Develop alternatives: Exercise, meditation, talking with supportive friends
• Reduce temptation: Unsubscribe from marketing emails and promotional content
• Practice mindful spending: Ask whether purchases align with values and goals

Understanding and managing emotional relationships with money proves crucial for avoiding debt relapse and maintaining financial health.

Insurance: Protecting Your Financial Progress

Protect your financial progress with insurance coverage:

• Health insurance: Protects against high medical bills
• Property insurance: Auto and home/renters coverage against costly damages
• Life insurance: Protects family financial security
• Disability insurance: Replaces income during work inability

While premiums represent expenses, they’re far less costly than financial devastation from being uninsured. Review coverage annually for continued appropriateness.

9. Financial Stress and Anxiety

Addressing the emotional toll of debt proves as important as executing the mathematical strategies for debt elimination.

The debt repayment journey carries emotional weight alongside financial calculations. Financial stress ranks among the leading sources of anxiety, particularly during active debt management periods. Here’s what you’ll address in this section:

• Debt’s Emotional Impact: Recognize anxiety and shame as normal responses
• Self-Care: Protect your wellbeing while maintaining momentum
• Support Networks: Discover how connection reduces psychological burden
• Healthier Money Mindset: Shift perspective through gratitude and reframing
• Reduce Financial Stress: Take concrete actions to manage anxiety

Understanding Debt’s Emotional Impact

Beyond financial consequences, debt creates significant psychological toll:

• Constant worry: Persistent concern about making payments and financial obligations
• Shame and embarrassment: Emotional responses to financial difficulties
• Relationship strain: Financial stress affecting partnerships and family dynamics
• Hopelessness: Feelings of being overwhelmed by debt magnitude

Recognizing these emotions represents the first step toward addressing them. Importantly, experiencing financial stress during debt management is common and understandable, not a personal failing.

Self-Care During Debt Repayment

Personal wellbeing during intense financial focus prevents burnout:

• Prioritize sleep and exercise: Physical health supports mental resilience
• Engage in low-cost activities: Enjoyable pursuits that don’t strain finances
• Practice self-compassion: Treat setbacks with understanding rather than harsh judgment
• Celebrate milestones: Acknowledge progress along the journey

Building Emotional Support Networks

Addressing financial stress alone intensifies struggle. Build your own support structure:

• Connect with trusted individuals: Friends and family offer emotional support
• Join communities: Online groups connecting others managing debt provide shared understanding
• Consider support groups: Specialized groups address financial stress specifically

Developing a Healthier Money Mindset

Perspective shifts significantly impact emotional wellbeing:

• Practice gratitude: Acknowledge progress and resources available
• Focus on progress: Celebrate incremental improvements rather than pursuing perfection
• Reframe setbacks: View challenges as learning opportunities strengthening financial skills
• Cultivate growth mindset: Approach financial management as learnable skill rather than fixed trait

Practical Steps to Reduce Financial Stress

Concrete actions help manage anxiety during the debt repayment journey:

• Break it into pieces: Focus on small, manageable steps rather than total debt
• Create routines: Regular “money dates” reviewing progress provide sense of control
• Practice mindfulness: Mindfulness techniques reduce immediate stress responses
• Seek professional support: Financial counselors or therapists provide objective guidance and emotional support

Recommended reading: “The Body Keeps the Score” by Bessel van der Kolk explores how stress affects the mind and body—and provides insight into managing anxiety.

10. Overcoming Setbacks

Those who successfully escape debt don’t avoid setbacks—they develop systems for recovering quickly and maintaining forward momentum.

The path to becoming debt-free is rarely linear. Resilience—the ability to recover from setbacks—proves more predictive of success than initial circumstances. This section addresses handling inevitable challenges without derailing progress.

• Understanding Setbacks: Recognize challenges as part of the journey, not signs of failure
• Setback Recovery Plan: Create systems for adjusting your strategy temporarily
• Managing Motivation Setback: Understand when to reset our motivational drivers
• Preventing Debt Relapse: Maintain habits that keep you free long-term

Understanding Setbacks as Normal

Common setbacks during debt repayment include:

• Job loss or income reduction: Reducing available debt payment funds
• Medical emergencies: Creating unexpected major expenses
• Equipment failure: Car or home repairs requiring immediate funds
• Motivation dips: Losing momentum after months of effort
• Lifestyle temptations: Facing pressure to spend on non-essentials

These are not personal failure, they’re part of the human experience which may adjust our financial debt repayment timelines.

Developing a Setback Recovery Plan

Preparing in advance for inevitable challenges enables faster recovery:

Before Setbacks Occur

• Build emergency fund: Even $1,000 prevents small crises from becoming debt
• Document your “why”: Keep written reminders of motivation for debt freedom
• Create contingency budget: Plan reduced debt payments if income drops
• Establish support contacts: List people to reach out to during difficulty

When Setbacks Occur

• Pause, don’t panic: Take time before major decisions
• Assess the situation: Understand the specific challenge without catastrophizing
• Adjust the plan: Modify debt payments or strategy temporarily if needed
• Communicate: Contact creditors about temporary difficulties—many offer hardship plans

After Working Through Setbacks

• Resume momentum: Return to original plan when circumstances improve
• Extract lessons: Understand what the experience taught about financial resilience
• Strengthen systems: Update emergency fund or budget based on experience
• Celebrate recovery: Acknowledge successfully navigating difficulty

Managing Motivation Setbacks

Psychological setbacks are different from circumstantial ones—but just as important to address. When motivation fades:

• Revisit your goals: Reread the letter to your future debt-free self
• Adjust strategy: Sometimes the chosen method needs changing (snowball or avalanche)
• Increase support: Spend more time with accountability partners or communities
• Update milestones: Create new short-term targets for motivation

Preventing Debt Relapse After Major Progress

A vulnerable time occurs after paying off significant debt. Many individuals resume old spending habits after becoming debt-free, leading to debt relapse. Preventing this requires intentional action:

• Redirect freed payments: Money previously going to debt should go to savings, not spending
• Maintain budget awareness: Continue tracking spending even after debt elimination
• Keep emergency fund: Don’t consider it available for discretionary use
• Maintain accountability: Stay connected to support communities and practices
• Celebrate the achievement: Acknowledge debt goals through budget-appropriate rewards

Related: Explore building resilience and bouncing back from life’s challenges for deeper strategies applicable to financial and non-financial setbacks.