Paying off debt can feel overwhelming—especially if no one ever taught you how to do it sustainably, with strategy, or with compassion. For many first-gen wealth builders, the shame around debt is real. You might be navigating student loans, auto loans, credit card balances—or all three—while also trying to build wealth and support your community.

I get it. That’s why I created the P.A.I.D. Off Method, a four-step framework that helps BIPOC, women, and LGBTQ+ folks pay off debt without sacrificing their wellness. Whether you’re working through credit card balances or dreaming of early retirement, this approach will help you build financial security on your own terms—con tiempo.

Why You Need a Grounded Approach to Paying Off Debt

Let’s start with why this work matters:

(1) You build foundational financial skills.

The P.A.I.D. Off Method teaches you how to track balances, calculate costs, and assess your capacity to repay. These are the real skills behind confidently managing and leveraging debt.

(2) You transform shame into strategy.

Debt isn’t inherently bad—it’s a tool. This method helps you use it intentionally, without spiraling into guilt or avoidance.

(3) You make smarter borrowing decisions.

With real data in front of you, you can confidently say “yes” or “no” to new opportunities.

(4) You shift from reactive to proactive.

Instead of using debt to survive, you begin using it to thrive—with your long-term goals in mind.

(5) You expand your nervous system’s capacity.

Every time you sit with your numbers instead of avoiding them, you build resilience—and make bigger moves (like real estate or business investments) feel possible.

The 4 Steps of the P.A.I.D. Off Method

Let’s break it down:

P – Pull Your Credit Report

Start with data. Go to annualcreditreport.com, a legit government site, and download reports from all three bureaus. You need more than your score—you need the full list of accounts, balances, lenders, and payment history.

From there, log into each account directly to check your most up-to-date balances, interest rates, and minimum payments. The credit report is a snapshot; your accounts give you the live view.

Reminder: You can’t create a debt payoff plan while avoiding your numbers.

A – Assess Your Cash Flow

This step is all about clarity and honesty.

Look at:

• Fixed expenses: Rent, mortgage, insurance, subscriptions
• Variable expenses: Groceries, gas, takeout, fun money
• Proactive self-care: Therapy, cleaning help, massages, childcare—whatever keeps you in your zone of resilience
• Minimum debt payments

Don’t judge yourself. Don’t divide things into “needs” vs. “wants.” Instead, ask: What helps me stay well while working toward financial security?

Once you know what money is coming in and where it’s going, you’ll know how much extra you can put toward debt. That’s your debt payoff power.

I – Intentionally Choose Your Payoff Focus

Choose a debt to focus on based on what you need:

• Avalanche Method: Highest interest first (to save the most money)
• Snowball Method: Smallest balance first (to build momentum)
• Emotionally Liberating Method: Pay off the debt that stresses you out the most (to free your nervous system)

The point is to start somewhere. You’re building confidence and emotional momentum, not just reducing a balance.

D – Determine Your Debt-Free Date

Use a free tool like calculator.net to run the numbers. Enter your balances, interest rates, minimum payments, and how much extra you can pay.

You’ll get:

• A debt-free date
• Total interest saved
• A recommended payoff order

Yes, the timeline might feel long. But seeing that number puts you in the driver’s seat. Whether it’s 2 years or 10, you’ll know how to adjust your budget, pace yourself, and avoid burnout.

What Makes This Hard—And How to Move Through It

Debt payoff is emotional work, especially for first-gen wealth builders. Here’s how to meet the challenges with compassion:

• Emotional Overwhelm: Light a candle, hold something soothing, set a 10-minute timer, and repeat: This is just data. I am safe.
• Lack of Financial Language: Break it down. One step at a time. Celebrate every milestone: pulling your report, listing expenses, using the calculator.
• Supporting Others While Surviving Yourself: Build family support into your budget. Create sinking funds. Set boundaries. You can care for others and protect your peace—with a plan.

Final Thoughts

When you follow the P.A.I.D. Off Method, you’re not just paying off debt—you’re reclaiming your confidence, your clarity, and your capacity to build wealth in a way that honors your lived experience.

Remember:

• P: Pull your credit report
• A: Assess your cash flow
• I: Intentionally choose your payoff focus
• D: Determine your debt-free date

Each step is an act of self-care. Each moment of clarity is a seed of generational change.

Want help creating your debt payoff plan?

Let’s work together 1:1.