How to Pay Off $35K, Fast!

A step-by-step guide to crushing debt, fast!

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Here’s a stat that might hit you in the face as hard as it hit me: American households carry an average of $104,215 in debt—per household!

If you’re shaking your head, saying, “Nooo, that can’t be right. People do not have that much credit card debt,” you’re right. It’s not just credit cards (but that’s what I thought, too). This debt spreads across:

• Credit cards

• Auto loans

• Personal loans

• Student loans and so much more.

The wildest part? 60% of Millennials and Gen Xers say they have no idea how to repay those debts.

My Debt Experience

Almost six years ago, I sat in a room with blue walls and white baseboards—you know, the one my parents let me live in until I was 30—trying to figure out how to repay $105,000 of personal and student loan debt, make more money, marry my then-girlfriend (now-wife), and buy a house for us, all in the next 12 months.

Under the daily stress, my knees buckled, my shoulders drooped, and my mind thought only of work and income. I was basically on edge all the time, overworked, and believed no one who said work-life balance was a real thing.

Here’s The Point

Bad debt is overwhelming. It can feel like the weight of the world is on your shoulders, and you’ll never be strong enough to lift it on your own.

And it doesn’t always stop at feeling overwhelming and stressful. Debt can significantly affect your overall quality of life, including where you live, where your kids go to school, sleep quality, self-esteem, and so much more.

But the Debt Snowball Method makes paying it off manageable—and sometimes motivating.

“The best way to get out of debt is to use the debt snowball.”
- Dave Ramsey

It’s the exact method I used to pay off $35,000 in personal debt in less than 5 months (we’ll talk about those student loans another time.)

Steps You Can Take Today

I’m sure you’ve heard the standard advice to pay off debts with the highest interest rate first. Sure, there’s merit in that, but that’s not what we’re doing here. Do not go searching for your interest rates! The Debt Snowball method is all about the balance owed. Here’s how it works:

Step 1: List your Debts (Smallest to Largest)

Write down all your debts. Yes, include credit cards, car loans, personal loans, student loans, and any other debt you have. Ignore interest rates.

Example:

• Credit card #1 - $800

• Medical Bill - $1,200

• Car Loan - $6,500

• Student Loan - $12,000

Step 2: Pay the Minimum on All Debts (Except the Smallest One)

I know this sounds ridiculous if you’ve been told to always pay more than the minimum on your debts. You probably think I’m a maniac for asking you to change that behavior.

One day, you’ll go back to paying more than the minimum (maybe even paying in full), but right now, that’s not what we’re doing.

Step 3: Make Extra Payments on the Smallest Debt

Every—and I mean every—extra dollar you have should be paid on your smallest debt.

For example, if you have $300 left after paying bills, put all of it toward the credit card debt in step 1.

Step 4: Roll Over Your Payments

Every time you pay off a debt, roll the minimum and extra payments into the next smallest debt. Why? It helps you pay off the next one faster—like a snowball rolling downhill.

Step 5: Repeat the Process

Please don’t spend the leftover money on things that will create more debt 🙏. Paying off debt requires discipline, and I encourage you to stay focused.

Why This Works

1. You repeatedly get quick psychological victories, which release dopamine in your brain and can motivate you to keep going.

2. The goal of paying off debt is to free up cash flow. And every debt paid off puts more money in your pocket, further motivating you.

3. You don’t have to overthink the process or do complicated calculations just to get started. Instead, just get started! The process is simple, straightforward, and leads to consistent progress.

If you follow the process, I’m sure you’ll pay off a large portion (or all) of your debt sooner than you think.

Let me know how else I can help you.

Until next time,
Isaiah from Earn Out Loud

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