A Guide to Creating a Manageable Debt Repayment Plan

Unsecured debt (like credit cards, personal loans, or payday loans) tends to carry higher interest rates and no underlying asset. These types of debts often stem from short-term decisions, such as business investments, personal emergencies, or lifestyle habits, and can easily spiral out of control if left unmanaged.

But here's the truth: being in debt doesn't make you irresponsible. It means you're human. Just like any other challenge, debt can be overcome with the right mindset and effective systems.

Before building your plan, be honest with yourself: are things manageable, or have they already started slipping?

Here are some red flags that indicate it's time to get help:

If this sounds familiar, don't suffer in silence. Organisations like StepChange or National Debtline (in the UK) offer confidential, non-judgmental support. Reaching out for help is a powerful act of self-leadership, not a sign of weakness or failure.

Start with financial clarity. Gather every debt-related document - credit cards, store cards, loans, overdrafts, and unpaid bills. Create a simple spreadsheet (or use a budgeting app) to record:

This isn't about judgment; it's about awareness. Seeing the whole picture gives you back your power.

Next, integrate debt repayment into your budget. Set a monthly amount you can realistically commit to repaying. Start with your current income, subtract essential expenses (housing, food, transport), then allocate what's left towards your debt.

Be sure to include a small buffer for unexpected costs and avoid being overly restrictive; you're building a sustainable plan, not a punishment.

This might mean temporarily reducing non-essentials, such as subscriptions or dining out, but it shouldn't mean eliminating all joy or freedom. Aim for balance.

There are two popular approaches to accelerating debt repayment:

Regardless of the method you choose, the most important thing is to stay consistent and track your progress. Visual tools, such as a tracker or thermometer graphic, can help keep you motivated and on track.

Got a bonus? Tax refund? Unexpected sale or gift? Rather than letting it disappear into day-to-day spending, consider allocating a portion (or all) of it towards your debt.

These lump sums can significantly impact your repayment journey. Even small overpayments on high-interest debts can dramatically reduce how long you stay in debt.

You don't have to be perfect, but whenever possible, be purposeful.

Debt repayment is a journey, not a sprint. Every time you clear a debt, take a moment to celebrate it. Recognise your commitment, your discipline, and the mental space you're reclaiming.

This might be as simple as journaling your win, taking a guilt-free afternoon off, or treating yourself (within budget) to something meaningful. Reward reinforces progress.

Everyone has off days. Life throws curveballs. That's normal.

However, the key difference between staying stuck and staying resilient lies in systems and self-compassion.

Keep your goals visible. Revisit your "why" often. Reflect on how much lighter your life will feel when debt is no longer dictating your choices.

"Progress over perfection. Forward is forward."

Surround yourself with accountability, this might be a financial coach, a trusted friend, or a monthly check-in with your budget. You don't have to do this alone.

Imagine what's waiting on the other side of your final payment:

Paying off debt is not just a financial goal; it's a confidence boost. It's a reclaiming of your energy and attention. It's an act of self-trust.

And once you've built the muscle of intentional financial management, you can apply it to every part of your life and business.

Use these affirmations to rewire your relationship with debt and build confidence:

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