Paying off debt sounds like a smart financial goal—but for many first-gen wealth builders, it often feels like a draining one too. When you’re trying to keep up with bills, build savings, and still enjoy your life, the thought of sending extra money toward debt can bring up more stress than motivation.

In this post, I want to show you how to approach your debt payoff journey with calm, strategy, and self-trust—without sacrificing your wellness.

Emotional Readiness Comes First

Before we dive into strategy, let’s talk about what really holds people back: shame.

If you’re like most of my clients, you were taught to see debt as a sign of failure. You might believe that having credit card debt means you’re irresponsible or behind. But that narrative is incomplete.

Many first-gen wealth builders have used debt to survive—to get through a crisis, help their families, invest in their education, or build their businesses. Debt isn’t a moral failing. It’s a financial tool.

You don’t need shame to build discipline—you need self-trust.

The truth is, your past debt decisions were made with the information and access you had at the time. What matters now is building from that experience with compassion and clarity.

What Stage 6 of Financial Security Looks Like

If you’re ready to send extra payments toward high-interest debt, that means you’ve likely reached Stage 6 of Financial Security:

• Your income covers all your expenses
  
• You maintain a checking account buffer
  
• You’ve saved one month of income
  
• You’ve created sinking funds for upcoming needs
  

Now you’re entering a season where you can make progress on debt—not out of panic, but from a place of stability.

Step-by-Step Debt Payoff Strategy

Here’s how to approach your high-interest debt (defined as anything with an interest rate over 9%) with care and intention:

1. List All Your Debt by Interest Rate

Pull your credit report, check Credit Karma, or log into your bank’s credit info. Make a list of all your debts and sort them by interest rate, highest to lowest.

2. Use the Avalanche Method

Make minimum payments on all debts. Then put any extra payments toward the debt with the highest interest rate. This method saves you the most money over time.

3. Only Use Surplus Cash Flow

Extra payments are optional. Stability is not. Never dip into your:

• Checking account buffer
  
• One month of expenses saved
  
• Sinking funds
  

Extra payments should come from what’s left over after your proactive self-care, fixed expenses, and minimum payments.

4. Automate or Make Manual Payments

• Automate if your income is steady and you want to “set it and forget it.”
  
• Go manual if you want to stay engaged and celebrate each payment. (Bonus tip: create a coloring chart or tracker in Canva to make it more joyful.)
  

5. Track Your Progress

Use a debt payoff calculator to project your debt freedom date. This reframes your thinking from “I’ll be in debt forever” to “I’ll be debt-free by ___.” Celebrate every step, even the small ones.

Every extra payment is you saying, “I trust myself to show up for my future.”

You’re Allowed to Enjoy Life While Paying Off Debt

Let’s be clear: debt payoff doesn’t have to feel like punishment.

You can still:

• Go out to dinner
  
• Take a vacation
  
• Celebrate birthdays
  

That’s what sinking funds are for. Building wealth and staying well go hand-in-hand. Sustainable payoff happens when you feel safe, joyful, and supported.

And if you need to pause extra payments? That’s okay. Don’t panic. Revisit your systems, tend to your nervous system, and return when you’re ready.

Key Takeaways

Here are five things to remember:

1. Shame doesn’t help—self-trust does. You’re building from experience, not starting from scratch.
   
2. Focus on high-interest debt (above 9%). That’s where the biggest wins are.
   
3. Protect your financial safety net. Extra payments come from surplus—not your savings or buffers.
   
4. Celebrate each win. Track your progress with visuals or journaling.
   
5. Debt payoff requires joy. The process should support your well-being, not drain it.
   

Ready for Deeper Support?

If you want to feel confident while navigating debt payoff, saving, and investing—without burning out—I invite you to apply to work with me 1:1.

I currently have 3 open spots for private coaching. And if you enroll before June 30th, you’ll get a bonus Wealth Para Todos Academy membership to gift to a loved one—so you can heal your relationship with money alongside someone you care about.

👉 Apply for 1:1 Coaching Now