Flip the Script on Debt: It's a Useful Tool, Not a Shame-Filled Mistake
Debt may be a four-letter word, but it isn’t a dirty one! Carrying debt is not a sign that you’ve failed or can never get ahead in your financial life. Debt is a tool. And like any tool, it’s all about how you use it.
So, if you have credit card balances, loans, or other debts that show up in monthly statements, take a deep breath. You're not alone, and there is a different story you can create around debt.
Let’s flip the script together.
Shift Your Mindset
It’s completely normal to have emotions associated with your financial well-being. But what if you could shift to a more neutral place? How might it feel to view debt without shame? What could change if you see debt as useful and manageable rather than bad and difficult to control?
Maybe you borrowed during a crisis, made the best decision available to you at the time, or spent beyond your means. That’s not failure, my friend. That’s life!
When you shift from self-judgment to a matter-of-fact point of view, it’s possible to take action with clarity. Why not see debt as a choice to pay over time rather than a mistake?
Kickstart your mindset shift this month by repeating positive affirmations a few times each day. Write your own or start with these two:
I don’t fear debt - I manage it.
Debt is a tool I use to support my goals.
A shift in your mindset around debt allows you to loosen the hold that guilt, shame, or fear have on you.
Gain Clarity and Take Action
While you work on your mindset shift around debt, step through your dread to determine exactly where you stand with your debt.
Pull together all of your debt information into a format that works for you. Whether it’s a spreadsheet or a notebook, a complete and clear picture of your debt empowers you to take action and build momentum.
From this place of clarity, you can determine which debt you continue to carry and which debt you eliminate. Then choose an elimination strategy that feels best for you. Here are a few examples:
Snowball method: Pay off your smallest balance first for a quick win and confidence boost.
Avalanche method: Pay off your debt with the highest interest rate to save more over time.
Consolidation or balance transfer: A smart move if you commit to no new debt while paying it off.
Do your own research to evaluate the possibilities and choose accordingly. Remind yourself that debt is a tool. You are learning to rewire how you think about it and reframe how you use it.
Use Debt to Build Credit and Reach Your Goals
Debt can support your long-term vision when used intentionally. Credit cards, loans, and lines of credit can build your credit score and unlock opportunities that don’t exist without a proven track record of successful credit usage.
Here’s how to use debt to your advantage:
Pay on time, every time. Payment history is the biggest factor in your credit score.
Keep credit utilization low. Use less than 30% of your available credit to boost your score.
Use a mix of credit types responsibly. It’s beneficial to have a mix of installment loans (e.g., mortgages or car loans) and revolving credit (e.g., credit cards or lines of credit) to build your credit score.
Check your credit report regularly. Dispute any errors and submit statements, if warranted.
When handled with strategy and confidence, debt can support your goals. Remember, debt is a choice to pay over time. Use this tool to demonstrate your financial prowess and self-trust!
Ready to take action?
Join me for a 4-Week Debt Clarity Challenge! This is a gentle, empowering way to get organized and move forward with confidence. One step per week, zero shame, all progress.
While you’re at it, why not boost your financial wellness in other ways, too. Join my free MONEY MATTERS list to receive a monthly email, each with a different money-related challenge, that helps you build your money mindset and grow your personal wealth.
The purpose of this post is to provide information and education (& hopefully some entertainment!). I am not a financial, medical, or mental health professional, so please do not interpret my words as the direction of a financial planner, doctor, or therapist.
I know you're smart and will ALWAYS consult with your physician or another appropriate, accredited professional before implementing any changes to your investments, diet, medication, lifestyle, exercise regimen, supplement regimen, or health practices. After all, you're here to live well, right??
Seriously - consult with your financial or healthcare team and assess your own risk. Verify what you find on the internet. I care about you!
