All posts by : Kenneth Keith

Let’s be honest: being in debt feels like slowly sinking into quicksand. At first, it’s just your feet. Then your knees. Before long, you’re waist-deep, looking around wondering if anyone else even sees you struggling. The emails pile up. The minimum payments grow. You start avoiding calls from unfamiliar numbers. And there’s this constant low-grade anxiety humming in the background of your life, like a song you didn’t ask to play on repeat.

If you’re reading this, chances are you’re either in the thick of that struggle or someone close to you is. Either way—let me say this upfront: you’re not alone, you’re not stupid, and you’re not beyond help.

But this article isn’t just another vague pep talk. We’re going to break down why debt feels so impossible, what your actual options are, and how some brutally honest but empowering shifts in mindset can change your life in ways you probably didn’t expect.

Let’s dive in.

The Real Reason Debt Feels So Crippling

Debt isn’t just about money. It’s about emotion. Guilt. Shame. Confusion. Isolation.

When you owe more than you can comfortably pay off—whether it’s $5,000 or $100,000—it starts to warp your sense of identity. You feel like a failure, like you made bad decisions, or didn’t try hard enough, or were just plain reckless. But here’s the thing most people won’t tell you: debt is part of the system.

Credit cards are designed to hook you in with rewards, low intro APRs, and shiny perks, only to turn around and slap you with 25% interest if you carry a balance. Student loans balloon over time. Medical bills arrive when you’re least prepared. Rent keeps climbing. Wages often don’t.

So first, please hear this: debt doesn’t mean you’re broken. It means you’ve been surviving in a system where it’s incredibly easy to fall behind.

Now let’s talk about how to start getting ahead.

Step One: Know What You’re Actually Dealing With

You can’t solve a problem you haven’t fully defined. Most people in debt don’t actually know how much they owe. That’s not laziness—it’s self-protection. If looking at your total balance gives you a panic attack, of course you’re going to avoid it.

But avoidance is exactly what makes the situation worse.

So—no matter how scary it feels—sit down and write it all out. Every debt. Every credit card. Every loan. Use a spreadsheet, a piece of paper, or even a debt tracker app like Undebt.it or You Need a Budget (YNAB).

For each one, list:

• The total amount owed
• The minimum monthly payment
• The interest rate
• The due date

This moment will suck. You might cry. You might rage. That’s okay. It’s part of taking your power back.

Because once it’s out in the open, it becomes real—and manageable.

Step Two: Stop the Bleeding

Now that you know what you’re up against, the next move is to prevent it from getting worse. That means two things:

1. Stop using credit cards.
   Cut them up, freeze them in a block of ice, lock them away—whatever you have to do. If you’re relying on credit cards to pay for everyday expenses, we’ll address that in a minute. But continuing to swipe is like pouring water into a sinking boat.
2. Cover the essentials first.
   Here’s the unpopular truth: debt payments should not come before food, rent, utilities, and transportation. If you’re choosing between paying Capital One or keeping the lights on, you keep the lights on. Period.

This might mean you temporarily fall behind on a few payments. That’s okay. You’re not ignoring the debt—you’re stabilizing yourself so you can fight back with a plan.

Step Three: Choose Your Debt Payoff Strategy

There are two main methods that actually work. Which one you choose depends on your personality.

1. The Debt Snowball Method
Popularized by Dave Ramsey, this strategy is all about momentum. You pay off the smallest balance first, regardless of interest rate. Once it’s gone, you roll that payment into the next smallest, and so on.

It’s emotionally rewarding—seeing one account disappear quickly gives you motivation to keep going.

2. The Debt Avalanche Method
This one is about math. You pay off the highest-interest debt first to minimize the amount you’ll pay overall. It’s not as instantly satisfying, but you save more money in the long run.

If you’re motivated by logic and long-term gain, go avalanche. If you need quick wins to stay pumped, go snowball. There’s no “right” answer—only what works for you.

Step Four: Create a Bare-Bones Survival Budget

This isn’t your forever budget. This is your “get out of jail” budget. Think of it like survival mode in a video game—cut all non-essentials so you can level up faster.

Look for areas to slash:

• Subscriptions you don’t use
• Dining out and takeout
• Impulse Amazon buys
• Streaming services you can pause
• Gym memberships (switch to home workouts)

If that sounds painful, remember: it’s temporary. The faster you can throw extra money at your debt, the faster you’re free.

Bonus tip: automate your payments, even if they’re small. Consistency is key.

Step Five: Increase Your Income (Yes, It Matters)

There’s a ceiling to how much you can cut—but no ceiling to how much you can earn. Side hustles, freelance gigs, part-time jobs, even selling stuff on Facebook Marketplace—it all adds up.

Here are a few real-world options:

• Drive for Uber or DoorDash on weekends
• Freelance on Fiverr or Upwork (writing, design, coding, etc.)
• Babysit, pet-sit, or housesit
• Sell unused clothes or electronics
• Rent out a room (if possible and safe)

Don’t let pride hold you back. This phase of your life isn’t about appearances—it’s about freedom.

Step Six: Call Your Creditors (Seriously)

This one surprises a lot of people, but it works.

Call your lenders and say:
“I’m committed to paying this off, but I’m struggling right now. Are there any hardship programs, reduced payment options, or interest rate reductions available?”

You’d be shocked how many will work with you. Some may even pause your payments or waive fees temporarily.

And if you’re dealing with collections? Don’t ignore them. You can often negotiate to pay less than the full balance—just get any agreement in writing before you send money.

Step Seven: Consider a Credit Counselor or Debt Management Plan

If things are really out of control—or you just want help from someone who’s seen it all—talk to a nonprofit credit counseling agency.

They’ll help you:

• Create a realistic repayment plan
• Lower your interest rates
• Combine payments into one monthly bill
• Avoid bankruptcy (if possible)

Look for certified agencies through NFCC.org or Money Management International.

Warning: avoid shady “debt relief” companies that charge upfront fees. Stick with legit nonprofits.

Step Eight: Mindset Is Everything

This might be the most important part.

Getting out of debt is hard. Like, really hard. It takes months—sometimes years. But here’s what changes everything: shifting your identity from “someone in debt” to “someone who is paying off debt.”

That little tweak changes how you show up. You’re not stuck. You’re moving. You’re not powerless. You’re progressing.

Celebrate every win. Pay off a card? Do a little dance. Avoid a $20 impulse buy? That’s a victory. Track your progress. Reward yourself in free or low-cost ways. Talk about it. Journal. Therapy helps too.

And please—don’t let anyone shame you for your past decisions. You’re doing something 90% of people never do: facing it.

If You’re Thinking About Bankruptcy…

Let’s just say it out loud—sometimes bankruptcy is the best option.

If your debt is unpayable, your wages are being garnished, or you literally can’t afford basics and make payments, talk to a bankruptcy attorney. Many offer free consultations.

It’s not the end of the world. It’s a legal tool to give you a fresh start. Yes, it affects your credit. But guess what? Your credit isn’t worth more than your peace of mind.

Final Thoughts: You’re Not Your Debt

Let me leave you with this:

Debt is a circumstance, not a character flaw.

You are still worthy of joy. You are still allowed to laugh, to rest, to dream big, even while you’re working through this.

Getting out of debt is more than just financial. It’s emotional. Spiritual, even. You learn how strong you are. How creative. How resilient.

And when it’s all said and done, you’ll have more than a zero balance—you’ll have a story. A powerful one. The kind that inspires others. The kind that says, “I went through hell, and I made it out.”

So wherever you are in this journey—just starting, halfway through, or on the edge of giving up—know this:

You are not alone.

You are not stuck.

And you can change your life.

You don’t have to scroll far on social media to find someone talking about money. Whether it’s a viral tweet about Sallie Mae ruining someone’s life or a TikTok creator offering five hacks to “beat the credit card trap,” money — especially debt — is a character in every millennial and Gen Z story. And for a growing number of Americans, that character is starting to look more like the villain than the underdog.

Two major kinds of debt are currently shaping the financial and emotional lives of millions: credit card debt and student loans. They’re not new problems, but they’ve evolved. They’ve become heavier, more complex, and more difficult to shake — especially as wages stagnate, rent soars, and the cost of simply existing continues to rise.

Let’s break it down: what’s really happening with credit card and student loan debt in America? Who’s affected? And what’s the real cost — not just financially, but psychologically and socially?

The Numbers Don’t Lie, But They Don’t Tell the Whole Story

Let’s start with credit card debt.

As of early 2025, Americans collectively owe over $1.13 trillion in credit card debt. Yes, trillion. That number hit a historic high in 2023 and hasn’t looked back. The average balance per borrower? Around $6,300, with many carrying even more — often across multiple cards.

At the same time, the average credit card APR (annual percentage rate) is hovering around 22% to 28%, depending on the issuer. To put that in perspective: if you carry a $5,000 balance at a 25% APR and only make minimum payments, you could easily pay over $10,000 in interest before clearing the debt. That’s not a misstep — that’s a trap.

Student loans aren’t faring any better. The total student loan debt in the U.S. is now over $1.7 trillion, spread across more than 43 million borrowers. The average federal student loan borrower owes around $37,000, but that number climbs past $100,000 for graduate students and borrowers in high-cost fields like medicine and law.

Sure, some people went to private universities or pursued multiple degrees. But millions of others are drowning in debt from community colleges, for-profit schools, or institutions they never even finished. Life happened — and the bills didn’t stop.

Credit Card Debt: When Survival Looks Like Swiping

Let’s be honest: there’s a stereotype about credit card debt. That it’s caused by irresponsible spending — too many lattes, designer bags, or trips to Tulum. But peel back the curtain, and it’s often a very different story.

A 2024 survey from Bankrate found that over 60% of people with credit card debt said they use their cards to cover necessities: groceries, gas, medical bills, and rent.

People aren’t financing luxury. They’re financing survival.

This is especially true for people in their 30s and 40s who are dealing with what financial planners call the “squeeze years” — when you’re balancing aging parents, young kids, a mortgage (if you’re lucky enough to have one), and student loans that never went away. If anything unexpected happens — job loss, car trouble, illness — the credit card becomes the only option.

And once the debt starts, it snowballs. You pay the minimum, then another emergency hits. You open a second card. You transfer balances. You tell yourself you’ll catch up next month. But next month is already spoken for.

It’s a cycle, and getting out takes more than just willpower. It takes income — and often, a complete life reset.

Student Loans: The Price of a Promise

There was a time when going to college was a ticket to the middle class — maybe even a comfortable life. That promise still echoes in graduation speeches and financial aid brochures, but for millions of Americans, it’s turned out to be a very expensive myth.

The cost of college has more than tripled since the 1980s, far outpacing inflation or wage growth. The federal government handed out loans like candy, and schools raised tuition knowing students could borrow to cover it.

But here’s the kicker: for many, the degrees didn’t deliver. A 2023 study showed that 40% of college graduates were working in jobs that didn’t require a degree — and made no more than high school graduates.

Even worse, millions who started college never finished. They still owe the loans, but they don’t get the earning power of a diploma. They’re stuck in financial limbo — overqualified for some jobs, underqualified for others, and in debt either way.

Add in interest, deferments, and loan servicer chaos, and what was once a manageable $20,000 loan can balloon into $60,000 or more.

And for borrowers of color, especially Black students, the burden is even heavier. Research from the Brookings Institution found that Black borrowers owe more than they originally borrowed even 12 years after starting college, while white borrowers have paid down a significant portion of their debt.

So, the “price of education” is not just tuition. It’s years of delayed dreams, missed milestones, and mounting interest that feels like a tax on hope.

It’s Not Just About Money — It’s About Mental Health

Here’s where the numbers become people.

Debt doesn’t just live on spreadsheets. It lives in our heads. It whispers in our ears when we try to sleep. It makes us cancel plans, delay weddings, skip therapy, and stay in jobs we hate because we “can’t afford to leave.”

A recent survey from the American Psychological Association found that 72% of Americans report feeling stressed about money — with debt being the number one driver of financial anxiety. People with high levels of debt are more likely to experience depression, anxiety, insomnia, and even physical health issues like high blood pressure.

There’s also the shame factor. Debt is deeply personal, and it often feels like a failure — especially in a culture that worships financial independence and grinds at all costs. We post our wins online but stay silent about our overdraft fees.

That silence is deadly. It isolates people and stops them from asking for help.

Who Profits from This? (Spoiler: It’s Not You)

While millions of Americans struggle under mountains of debt, others are making a fortune off of it.

Credit card companies, private lenders, and loan servicers are raking in billions every year from interest and fees. Late fees alone on credit cards generated over $14 billion in 2023. Meanwhile, student loan servicers — companies contracted by the federal government to manage repayments — are notorious for poor customer service, misinformation, and administrative errors that cost borrowers money and time.

There’s a reason the debt system feels like a trap: in many ways, it’s designed to be one.

And let’s not forget — many people in positions of power, from lawmakers to university board members, have a vested interest in keeping that system running. The revolving door between financial institutions and federal regulators doesn’t help either.

What’s Being Done (and What Isn’t)

Over the past few years, there’s been growing political pressure to address both credit card and student loan debt.

For credit cards, new CFPB (Consumer Financial Protection Bureau) rules are targeting hidden fees and high late charges. Some banks have rolled out hardship programs or interest rate caps — but critics argue these efforts are mostly cosmetic.

Student loan debt has gotten more attention. In 2022, the Biden administration announced a plan to cancel up to $20,000 in federal student loan debt per borrower. But after a Supreme Court challenge, that sweeping forgiveness plan was struck down. In response, the administration launched smaller-scale relief programs like the SAVE plan, which reduces payments based on income and can forgive balances after 10 to 25 years.

These changes help — but they don’t address the root problem: why does college cost so much to begin with? And why are 18-year-olds allowed to sign off on six figures of debt without fully understanding what that means?

The short answer: because that’s how the system works. And changing it would require more than policy tweaks — it would take a full reimagining of how we fund education and protect consumers.

The Way Forward: Real Talk, Real Solutions

So, where do we go from here?

First, we need to normalize the conversation. Debt isn’t shameful — it’s systemic. And you are not the only one struggling. The more we talk about it openly, the less power it has to isolate and overwhelm.

Second, we need financial literacy — not just in high school, but throughout adulthood. Understanding how interest works, how to negotiate with lenders, and how to avoid predatory practices should be as basic as learning how to vote.

Third, we need bold policy. That means tuition reform, regulation of credit card practices, and a serious look at how we define “financial responsibility.” Because right now, too many people are being punished for trying to do the “right” thing — go to school, build credit, take care of their families — only to find themselves buried in the process.

And finally, we need compassion. Debt is not just about dollars. It’s about dignity. It’s about how we value people, their labor, their dreams, and their futures.

Final Thoughts

Credit card and student loan debt aren’t just economic issues. They’re human ones. They shape where we live, what jobs we take, when we start families, and how we see ourselves.

Behind every number is a story — and for millions of Americans, that story is one of resilience, frustration, and a quiet hope that maybe, someday, this country will build a system that doesn’t punish people for trying.

Until then, we keep talking. We keep pushing. And we keep reminding each other: you are not your debt. You are not broken. You are not alone.