I still remember the night I realized I was drowning. It was 2 AM, and I was staring at my ceiling, unable to sleep. My chest felt tight. I had just calculated my total debt, and the number made me want to throw up: $15,000.
To some people, that might not sound like a lot. But I was earning minimum wage, living in a tiny apartment, and I had exactly $42 in my checking account.
I felt trapped. I felt like a failure. Every time my phone rang, I was terrified it was a debt collector. I Googled “how to get out of debt,” but every article told me to “invest in stocks” or “buy a rental property.” Seriously? I couldn’t even afford groceries!
If you are reading this and feeling that same panic, take a deep breath. I have been there.
I am not a financial teacher. I am just someone who clawed their way out of a financial hole with zero extra money. It took me 18 months, but I paid off every single cent.
Here is the exact, brutal, honest plan I used to get out of debt when I was broke.
Step 1: Stop the Bleeding (The “Freeze” Method)
The first thing you need to do is stop digging the hole deeper.
When I was in debt, I continued to use my credit cards for “emergencies.” But let’s be honest—ordering pizza because I was too tired to cook wasn’t an emergency. It was a habit.
I did something extreme: I literally froze my credit cards. I took a plastic cup, filled it with water, dropped my credit cards inside, and put it in the freezer.
Why? Because it forced me to pause. If I wanted to buy something impulsively, I had to wait for the ice to melt. Usually, by the time the ice melted, I realized I didn’t need that thing anyway.
Action Item: Remove your credit cards from your wallet today. Delete them from Apple Pay, Amazon, and Uber Eats. If you can’t spend it easily, you won’t.
Step 2: Face the Monster (The List)
Most people stay in debt because they are scared to look at the numbers. I was one of them. I used to throw my bank statements in the trash without opening them.
But you cannot fight a monster you cannot see.
One Saturday morning, I sat down with a notebook and wrote down everything. It was painful.
- Visa Card: $4,200 (22% Interest)
- Student Loan: $8,500
- Personal Loan: $2,300
Seeing it on paper was scary, but it was also freeing. Now I knew exactly who my enemy was.
Step 3: The “Snowball Method” (How I Actually Paid It Off)
This is the secret weapon. Mathematically, experts say you should pay off the debt with the highest interest rate first (the Avalanche method). But humans are not calculators. We are emotional creatures.
I used the Snowball Method. I focused on my smallest debt first—a $500 medical bill. I ignored the big loans for a moment and threw every extra dollar at that $500 bill.
I sold some old clothes. I ate instant noodles. I walked to work to save bus fare. In three weeks, that $500 debt was GONE.
The feeling was incredible. I felt like I had won a war. That tiny victory gave me the motivation to attack the next smallest debt ($2,300).
Why this works: When you have no money, you need hope more than you need math. Seeing one debt hit $0.00 gives you the energy to keep going.
Step 4: The “Phone Call” Hack (Negotiate Your Rates)
This may sound intimidating, but it saved me over $1,000 in interest.
I called my credit card company. My hands were shaking. Here is exactly what I said: “Hi, I have been a loyal customer for 3 years. I am trying to pay off my balance, but the 22% interest rate is making it impossible. I received an offer from another bank for 15%. Can you match that, or should I transfer my balance to them?”
Guess what? They didn’t want to lose me. They lowered my rate to 16% on the spot. That 5-minute phone call saved me hundreds of dollars instantly.
Try it today. The worst they can say is “No.” The best they can say is “Yes,” and you save money for doing nothing.
Step 5: Finding “Hidden Money” in Your Life
When you think you have “no money,” you usually do—it’s just being wasted on things you don’t care about.
I did a “Spending Audit.” I printed out my bank statement from the last 3 months and used highlighters:
- Green: Essential (Rent, Electricity, Basic Food).
- Red: Stupid (Subscriptions I forgot, Eating out, overpriced coffee).
I found out I was paying $15/month for a gym membership I hadn’t visited in a year. I was spending $80/month on streaming services I barely watched.
I cancelled everything. I mean everything. I started cooking in bulk on Sundays (Rice and Beans are cheap and healthy). I stopped buying brand-name products and switched to store brands.
Suddenly, I had an extra $150 a month. That $150 didn’t go into my pocket—it went straight to the debt.
Step 6: The Side Hustle (You Need a Shovel)
Cutting expenses has a limit. You can’t cut your spending to zero. Eventually, you need a bigger shovel to dig yourself out.
I needed cash, fast. But remember, I had no money to start a business. So, I looked for things that required zero investment. “If you need ideas, read my guide on 5 Passive Income Ideas to Start with $0.”
- Dog Walking: I love dogs. I put up flyers in my neighborhood.
- Selling Junk: I sold my old Xbox. I sold the old textbooks. I sold everything that didn’t work for me.
This extra income wasn’t “fun money.” Every single dollar I made from dog walking went directly to the credit card company. It was exhausting working weekends, but I knew it was temporary.
How Life Changed After Debt
The day I made my final payment, I cried. I logged into my bank account and saw: Balance Owing: $0.00.
I wasn’t rich. I still didn’t have a lot of savings. But I was free. Getting out of debt didn’t just fix my bank account; it fixed my mental health. I slept better. My relationships improved because I wasn’t stressed all the time.
Final Words to You
If you are sitting there thinking, “This is impossible for me,” I am telling you—it is not. It will require sacrifice. You might have to say “no” to hanging out with friends for a few months. You might have to wear the same clothes for a year.
But freedom is worth it. Start today. Freeze the card. Make the list. Pay $5 towards your debt. Just do something.
You can do this. I believe in you.