Let's Talk About the D-Word: Your Path to Debt Freedom
Let's be honest about how debt feels. It's heavy. It sits on your chest when you try to sleep, whispering reminders of everything you owe. It's shameful—a secret you carry, convinced that everyone else has it figured out while you're drowning in payments. It's invisible to the outside world but consuming your inner world, making every financial decision feel like walking through quicksand.
And then there's the confusion. One expert screams that all debt is evil and you should cut up every credit card. Another preaches that debt is a tool for the wealthy and you're foolish not to leverage it. Some say pay off your mortgage early. Others say invest instead. Who's right? Who do you trust when your financial future feels like it's hanging in the balance?
Here's what I know to be true: Debt isn't inherently good or bad—it's a tool. But the way you manage it defines your freedom.
The Great Debate: Dave Ramsey vs. Robert Kiyosaki
In one corner, we have Dave Ramsey, the king of debt elimination. His message is clear and unwavering: cut up the credit cards, get out of debt at all costs, live a cash-only lifestyle. Build wealth slowly and steadily without the risk and stress of borrowed money.
In the other corner, we have Robert Kiyosaki, the rich dad who teaches us to leverage debt to build assets. Use other people's money to buy real estate, start businesses, and create cash flow. The wealthy use debt as a tool—why shouldn't you?
Both are right. Both are wrong. It depends entirely on your season of life.
Ramsey's method is powerful for getting control and peace. When you're drowning in consumer debt, when you can't sleep because of what you owe, when your relationships are strained because of money fights—you need stability first. You need to stop the bleeding before you can start building.
Kiyosaki's method is powerful once you're financially literate and disciplined. When you understand cash flow, when you can distinguish between good debt and bad debt, when you have the emotional regulation to handle risk—then leverage becomes a tool for acceleration.
Your first goal should be stability. Your next goal can be strategy.
Debt Avalanche vs. Debt Snowball
When you're ready to tackle your debt, you have two proven methods to choose from:
❄️ The Snowball Method (Ramsey-style)
Pay off your smallest debt first, regardless of interest rate. Make minimum payments on everything else, then throw every extra dollar at that smallest balance until it's gone. Then move to the next smallest debt.
This method builds momentum and creates early wins. It feels emotionally rewarding to see accounts disappear from your list. It's psychologically powerful because it gives you proof that you can do this.
🔥 The Avalanche Method
Pay off your highest interest rate debt first, regardless of balance. Make minimum payments on everything else, then attack the most expensive debt until it's eliminated. Then move to the next highest rate.
This method saves more money in the long run. It's mathematically optimal and requires more discipline and patience. You might not see accounts disappear as quickly, but you'll pay less overall.
Which is better? Whichever one you'll actually stick to.
Choose based on your personality:
If you need emotional wins and motivation to keep going, choose the Snowball
If you're math-focused and can stay disciplined for the long haul, choose the Avalanche
The best method is the one you'll follow through on. Perfection is the enemy of progress.
The Emotional Side of Debt
Here's what most financial advice misses: debt isn't just numbers on a spreadsheet. It's shame about past decisions. It's fear about the future. It's guilt about what you've done to your family's security. It's avoidance of phone calls and statements because the truth hurts too much.
You can't spreadsheet your way out of shame. But taking control—even slowly, even imperfectly—begins to heal it.
Every payment you make is proof that you're not the person who created this debt. Every dollar you throw at your balances is evidence that you're becoming someone new. Every month you stick to your plan is a victory worth celebrating.
Quick win: Make peace with your past decisions. You made the best choices you could with the information, resources, and emotional state you had at the time. Today, you're building something new.
Action Steps: Start Your Debt Payoff Plan
Stop researching and start acting. Here's your simple checklist to begin right now:
Step 1: List ALL Your Debts
Get out a piece of paper or open a spreadsheet. List every single debt you have. Include:
Lender name
Total amount owed
Minimum monthly payment
Interest rate
No hiding from this. No "I'll add that one later." Every debt. Every balance. Complete honesty.
Step 2: Choose Your Method
Snowball or Avalanche—circle one and commit to the plan. Don't second-guess yourself. Don't switch methods next month. Choose one and stick with it.
Step 3: Make a Minimum Payment Plan
Ensure you're paying all minimums on time, every time. Late fees and penalty interest rates will sabotage your progress faster than anything else.
Step 4: Choose Your "Focus" Debt
This is your target. Every extra dollar you can find goes here. Cancel the subscription you don't use. Sell the thing collecting dust in your closet. Work an extra shift. All of it goes to your focus debt.
Step 5: Find Your Freedom Date
Use a debt payoff calculator to find out exactly how long it'll take. This isn't about discouraging you—it's about giving you a finish line to run toward.
When you can see your freedom date, when you can count down the months until you're debt-free, everything changes. You have hope. You have a plan. You have power.
Real Talk: Is All Debt Bad?
Let's get nuanced about this because the world isn't black and white:
Bad debt = consumer debt you can't pay off quickly, spending on things that don't grow in value. Credit card debt for vacations, cars you can't afford, shopping sprees that felt good in the moment but hurt for years.
Neutral debt = mortgages and student loans. Low interest, long term, potentially tax deductible. Not ideal, but not destroying your future either.
Good debt = debt leveraged to create cash flow or grow your net worth. Real estate that pays you rent, business loans that generate revenue, investments that appreciate faster than your interest rate.
But here's the truth: even "good" debt becomes bad when it steals your peace, your cash flow, or your purpose. Even a profitable rental property isn't worth it if you can't sleep at night.
Your goal isn't perfection. It's peace and control.
You're Not Behind. You're Just Starting Your Comeback.
Most people are in debt. The average Canadian household carries over $4,500 in credit card debt alone. You're not broken. You're not behind. You're not uniquely flawed or financially doomed.
What sets you apart is that you're facing it. You're reading this instead of pretending it doesn't exist. You're choosing knowledge and action over shame and avoidance.
That courage? That willingness to confront what's uncomfortable? That's the difference between people who stay stuck and people who break free.
"Debt doesn't define your worth. But how you face it might define your future."
Your comeback starts now. Not when you feel ready. Not when you have more money. Not when you're less scared. Now.
Every expert was once a beginner. Every debt-free person once felt overwhelmed by their balances. Every success story started with someone who decided that enough was enough.
Today is your enough-is-enough day.
Ready to See Your Freedom Date?
Use this free Debt Payoff Calculator to plug in your numbers and find out exactly when you'll be debt-free:
- Undebt.it (user-friendly and highly rated)
- NerdWallet Debt Payoff Calculator
Read these books if you haven’t already:
Total Money Makeover - Dave Ramsey
Rich Dad, Poor Dad - Robert Kiyosaki
Your freedom is waiting. Your peace is possible. Your comeback starts today.
Stop letting debt whisper lies about your worth. Start making it disappear instead.
