3 Approaches to Paying Off “Bad” Debt

Photo by Avery Evans on Unsplash

Not all debt is bad. My last article provided some guidance on determining good vs. bad debt. Regardless of whether it’s good or bad, the goal in life is to get to a place financially where you are truly debt free. This article provides a plan and three approaches that you can actually mix and match to achieve that goal.

Paying off debt requires some planning

As a coach — and someone who is getting certified as a YNAB (aka You Need A Budget) coach — I often find myself doing financial coaching with clients. When they talk about debt, shame behaviors regularly come out like avoidance. Debt can be overcome with a plan and some behaviors. I pulled myself out of thousands of dollars of credit card debt by planning using these strategies. I think you can find a personal approach that works for you using some or all of these tools.

Tool 1: Stop Adding Debt

The first step is, as they say, always the hardest. You have to stop taking on more debt. Nowhere is this harder than credit card debt.

The first time I tried to get myself out of credit card debt, my cat fell out of a tree and broke a leg three days after I made my plan. (Note: Yes — I had to get myself out of credit card debt more…