Fresh Finance Challenge #5: Kickstart Your Debt-Free Plan

Sarah Brumley

Sarah Brumley

Debt holding you back? It’s time to kickstart your debt free plan! Today’s episode is all about breaking down debt into manageable steps, so you can start the year with confidence. Sound like something you need? Well then, let’s get started!

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Fresh Finance Challenge #5: Kickstart Your Debt-Free Plan

Well hey there and welcome back to the Financial Fix Up Podcast! I’m your host, Sarah Brumley, and it’s Day 5 of our Fresh Finance Challenge. Can you believe we’re almost at the finish line? Today, we’re tackling a big topic—kicking off a plan to live debt-free.

I get it—debt can feel overwhelming and even a little scary to face head-on. But here’s the good news: it doesn’t have to be. With a clear plan and small, intentional steps, you can take control of your debt and free up your resources for the things that truly matter.

Let’s start with why debt matters so much. Debt limits your financial flexibility and keeps you tied to payments instead of being able to use that money for savings, family adventures, or just a little breathing room in your budget. Tackling debt is one of the most freeing things you can do for yourself and your family. So, if you’re ready, let’s dive in!

Choose a Debt-Payoff Strategy

First and foremost, let’s talk strategies. There are two popular methods for paying off debt:

  1. The snowball method which focuses on paying off the smallest debt first. It’s great because you get those quick wins, which can help you stay motivated.
  2. The avalanche method tackles the debt with the highest interest rate first. While it might take a little longer to see progress, you’ll save more money on interest in the long run.

Personally, I prefer the snowball method, just because I like those quick, motivating wins, but the key is that you choose the one that works for you, and the one you’re more likely to see results with. Either way pick one and commit to it.

If you do want to learn more about the snowball method, I have a whole video tutorial AND a worksheet to help you manage that, so you can find that by visiting the link in the show notes.

Create a Simple Payoff Plan

Once you’ve chosen your debt payoff strategy, it should be really clear which debt you’re focused on first. Rather than thinking, though, that you’ll pay off this $5,000 credit card this year, I’d like to encourage you to break your goal down into smaller more manageable steps. For instance, you might look at how much you can realistically put toward that debt in January and then try to maintain that same amount throughout the remaining months of the year.

The key is to make it simple and sustainable. Progress doesn’t happen overnight, but every payment you make moves you closer to being debt-free.

Day 5: Take Action

Alrighty, it’s time to take action! Today I want you to identify the first debt you’ll focus on in the upcoming year. This could be the smallest debt, the one with the highest interest rate, or any debt that’s been weighing heavily on your mind. The key is to pick something manageable that you can start tackling right away.

Once you’ve chosen your focus debt, it’s time to create a simple payoff plan for January. Break it down into smaller chunks – maybe it’s an extra $50 or $100 or even $10 this month that you can put toward the debt. The goal is to be realistic and set yourself up for success, not stress.

As you work on this, don’t forget to celebrate every payment, no matter how small. Each payment is a step closer to financial freedom. And remember, this is just the beginning. It’s about creating momentum so you can keep moving forward in the months ahead.

What’s Your Debt-Free Plan?

And there you have it – day 5 of our Fresh Finance Challenge. Debt does NOT have to control your life – it’s just one part of your financial journey. But by creating this clear plan and celebrating your progress, you’ll build momentum to tackle your debt step-by-step.

Tomorrow we’re focusing on organizing your financial documents so you can feel confident and stress free about the year ahead. Only two more days! You’ve got this!

And if you need a little extra help getting your budget up and going ahead of the new year, don’t wait to grab your copy of the Financial Fix Up Planner. It has everything you need to set yourself and your finances up for success in the upcoming year and it’s less than $20. Grab your copy at lemonblessings.com/planner.

Whatever you decide, just know that I’m cheering you on! You’ve got this! Have an amazing day and I’ll chat with you tomorrow!

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