What to Do When You're Drowning in Debt: A Step-by-Step Guide
When you're drowning in debt, it can feel like you're gasping for air—barely keeping your head above water while the waves just keep coming. The collection calls, the mounting balances, the anxiety every time you check your bank account—it's overwhelming, exhausting, and isolating.
But here’s the truth: You’re not alone—and there’s a way out.
This isn’t just about money. It’s about reclaiming your peace, your power, and your future. So take a deep breath. You’ve already done the hardest part: admitting you need help. Now, let’s walk through this—step by step.
Step 1: Pause and Breathe
Before we do anything else, stop and take a breath. You may feel panicked or ashamed, but those feelings do not define you. Debt is a situation—it’s not your identity. The goal here isn't to judge the past. It's to build a path forward.
Step 2: Get Honest with the Numbers
You can’t fix what you can’t see. It might feel scary, but gathering the facts is empowering. Create a list of:
All your debts (credit cards, loans, medical bills, etc.)
The balance, interest rate, and minimum payment for each
Your monthly income and essential expenses (housing, food, transportation)
It’s not about being perfect—it’s about being honest. Clarity is the first step to control.
Step 3: Prioritize Needs Over Wants
If your budget is stretched thin, it’s time to shift into survival mode. Cover the essentials first: food, shelter, transportation, and utilities. Once those are secure, any extra income should be directed toward a plan to address the debt.
This is temporary. It’s not about deprivation—it’s about strategic action.
Step 4: Choose a Debt Payoff Strategy
There are two tried-and-true methods to get traction:
The Debt Snowball: Focus on the smallest balance first while paying minimums on the rest. Each paid-off debt builds momentum.
The Debt Avalanche: Pay off the highest-interest debt first. This saves the most money in the long run.
Whichever method motivates you more is the right one for you.
Step 5: Increase Your Income
You don’t have to overhaul your life overnight, but look for small, short-term ways to bring in extra income:
Sell unused items online
Pick up a part-time gig or freelance work
Offer skills in your community (cleaning, babysitting, yard work)
Every extra dollar is a lifeline—and you’re the one holding it.
Step 6: Don’t Go It Alone
One of the most dangerous lies debt tells us is that we’re alone. You’re not. Talk to a trusted friend, seek support in a financial coaching group, or work with a professional who specializes in debt freedom. You deserve a judgment-free space to ask questions, get support, and create a plan.
Step 7: Protect Your Mental Health
Debt affects more than your bank account—it impacts your mind and your well-being. Make time for rest, fresh air, movement, and encouragement. You can be serious about your finances and gentle with yourself.
Step 8: Celebrate Every Win
Paid off a credit card? Celebrate. Stuck to your budget for the month? Celebrate. Asked for help? Celebrate.
Small victories are the building blocks of big transformations. This journey is hard—but you are stronger.
You’re Not Drowning—You’re Learning to Swim
Debt is overwhelming, yes—but it’s also temporary. Every step you take, no matter how small, brings you closer to the surface. You are not broken. You are not behind. And you can take back control of your money—and your life.
If you're ready to take that next step, I’m here to walk alongside you. Let’s create a plan tailored to your situation, your goals, and your life.
You’ve got this. And you don’t have to do it alone.
