the wallet of someone who is drowning in debt

What Can I Do if I’m Drowning in Debt? Here Are 3 Easy Strategies.

Are you drowning in debt and wonder what you can do? In this article, I’ll aim to cover 3 easy strategies you can do today to get starting paying off your debt.

If you are drowning in debt, there are 3 easy strategies to pay it all off. First, you need a budget to create a monthly surplus. Second, you need to know how much you owe. And last, putting it together, you need to use that monthly surplus to pay off your debt.

Are you in a far from an ideal financial situation? Do you feel like you’re always trying to catch up? If so, you’re not alone.

The average US household debt is $137,063, including mortgage debt, credit card debt, and other forms of debt. 

It is no wonder that many families feel they are drowning in credit card debt and debt in general. 

That doesn’t mean it has to stay that way, but it feels a bit like we’re all in the middle of a financial crisis, or at least we’ve all been trying to catch up, right?  

Achieving financial freedom isn’t easy. It takes work. But, once you start, I assure you it gets easier. To be sure, no matter how bad your debt situation may seem, three simple steps can be taken to help you get back on track. Then, perhaps you might no longer feel like you’re drowning in debt.  

Create a Budget and Break it down into wants/needs

First, you’ll need to know your monthly income. In case your monthly income varies, then take an average of the last 6 months, and adjust as needed.

Click here for a downloadable budget that you can fill in, courtesy of The Financially Independent Millennial.


Start by breaking down your expenses into wants and needs. Wants are things that are “nice to have”. For example, wants are things like: New clothes, spa treatments, eating (and drinking) out, etc.  


Needs are fixed expenses like Rent/Mortgage, Food, Insurance, car payments, credit card payments, other debt payments etc.

Sort your debt by interest rate

Now that you have your wants/needs budget set up, we need to figure out all your debts. Most importantly, we need to determine the interest rate, and the amount owed (not the monthly payment, but the total amount owed).

In general, your mortgage will likely be your largest loan, and it will probably come with the lowest interest rate. By contrast, lines of credit, and credit cards will have smaller balances than a mortgage but come at a higher interest rate.  

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