Why Debt Holds You Back

Debt isn’t just a financial burden—it’s an emotional one. Monthly payments steal your income and your peace of mind. When you owe nothing, your paycheck becomes your greatest tool for building wealth, not digging out of holes.

The Debt Snowball Method

Dave Ramsey recommends the debt snowball method: list your debts from smallest to largest, regardless of interest rate. Pay minimums on all but the smallest, then attack the smallest with everything you’ve got. Once it’s gone, roll that payment into the next smallest. Repeat until you’re debt-free.

Why this works: quick wins build momentum. You’ll stay motivated as the snowball grows and debts disappear.

Fuel Your Payoff

Freeing up money for debt payoff often requires short-term sacrifice. Ideas include:

• Cut subscriptions, dining out, or impulse spending.
• Sell unused items and put the cash straight on debt.
• Pick up extra shifts, freelance, or side hustles to boost income temporarily.

Remember, this phase is temporary. The intensity now creates freedom later.

Stay Focused

It’s tempting to pause debt payoff for vacations, upgrades, or “treats.” But the faster you knock it out, the sooner you’ll feel the weight lift. Every debt you clear is another chain broken—and another step toward independence.

Takeaway

Baby Step 2 is where the real transformation happens. By attacking debt with intensity, you take back your paycheck, your confidence, and your peace of mind. Debt-free living isn’t just possible—it’s the launchpad for building true wealth.