7 Mental Armors For Getting Out of Debt

Updated: April 10, 2024

I used to have five credit cards and was drowning in almost P200,000 worth of debt. It actually reached a point where collection agencies would make rude calls to me and send fake summon letters from law firms to my address.

At first, I ignored them. I was not affected because I knew those were all empty threats.

But then they got hold of my parent’s home number, and all it took was just one phone call to break my mom into tears.

When I learned what happened, I knew it was time to change, or else I’d risk hurting more people that I love. So, I decided to confront my debts.

I started by creating a budget. I began tracking my expenses.

I also discovered the Debt Snowball Method, which was tremendously helpful.

After three years, I was debt-free.

Whenever people ask me how they can pay off their debts, I’d normally advise the above steps that I did.

Create a budget. Track your expenses. Do the Debt Snowball Method.

However, I realized that these are easier said than done. And they require a certain mindset to succeed.

Thus, below, I’m sharing the seven mental armors I wore to win my battle against debt. Equip yourself with these, and you’ll be closer to victory in your battle.

1. Accept that you have a debt problem.

Awareness and acceptance are always the first steps toward change. Have the courage to admit to yourself that you are in serious financial trouble.

Moreover, recognize that this is not a permanent problem, and you have the power to overcome it, just as many others have done before you.

2. Tell yourself that there will be no more running.

Being in debt is like standing in front of a rabid dog. You should not turn your back and run away from it because it will attack if you do.

Instead, you must stay calm, assess the environment, and find the best way to neutralize the situation and bring yourself to safety.

When faced with seemingly insurmountable debt, it’s also best to stay calm, assess your options, and find the best strategy to pay it off as soon as possible.

3. Look forward to making a lot of changes in your life.

If you keep doing what you’ve always done, nothing will ever change. So, if you want your debts to disappear, you must change how you live.

Your daily routine will change, your spending habits will change, your lifestyle will change, and in some cases, your set of friends will change too.

4. Put more focus on creating income.

There are two ways to come up with the money to pay your debts: lessen your expenses and earn more income.

Unfortunately, simply eliminating your unnecessary spending won’t work fast enough to pay off your debts as soon as possible. So, if you want to turbocharge your finances, then you really need to increase your cash flow.

Keep your worries at bay and focus more of your time and energy on creating streams of income. Get a second job, do freelancing, sell your stuff – be proactive.

5. Expect that it will be difficult.

If it’s easy to get out of debt, then nobody will have this problem. Don’t fool yourself into thinking it will be a walk in the park; it will be a trek through the jungle.

No, I’m not scaring you – I’m just being realistic.

Eliminating your debts will be a big challenge, but in the end – it will be one of the greatest achievements that your friends and loved ones will always remember about you – an accomplishment that you will forever be proud of.

6. Be ready to face and overcome self-pity and depression.

Calls from collection agencies will continue, and letters from law firms will relentlessly come; meanwhile, the world around you will carry on and move forward without sympathy. Paying off your debts can be a lonely battle, but you don’t have to be alone.

Find joy and comfort in the listening ears of friends and loved ones. Don’t be afraid to talk about your fears and hopes with them; it will help a lot.

7. Always remember that your debts do not define who you are.

I got myself deep in credit card debt because I was a reckless and impulsive buyer. I swiped my card, buying a lot of things that I didn’t need to impress people I didn’t even like. Yes, I used to be a shallow and materialistic person.

But then I realized that I could be a different person – a better person than who I was at that time.

At that point, I stopped listening to the names that collecting agents called me. I shut my ears from the gossip that was going around the office about my troubles. I refused to let my financial mistakes define who I am.

Instead, I chose to be the good person I knew I could be—the one who I knew existed within me if only I gave it a chance to come out.

It took me three years to finally get out of debt. When I started taking charge of my finances, I thought it would take ten years.

If you’re trying to get out of debt, it will feel like it’s never going to end. But believe me, things will always get better, and it will be over sooner than you expect.

What to do next: Click here to start your financial journey with IMG Wealth Academy


  1. Will paying off your cc debts clear your name from list of people blacklisted by financial institutions? I heard that even if you’re already fully paid, your name is still on the list and regarded as high-risk by banks.

  2. Thanks for sharing! So far the only debt that I have is my SSS salary loan. People told me to use so as to prevent unwanted individuals from tapping my resources ^_^

    I’ll keep this in mind once I

  3. and now you are one that i consider mentor. a good one too . well, blessing in disguise .

  4. @Erika
    Yes, your name will remain in the blacklist even if you pay your cc debts. It will be removed automatically after 5-7 years according to a friend who works in Citibank.

    I believe that is not true. But in any case, if you are eligible to avail an SSS salary loan then you should consider leveraging it to make some money because it’s interest rate is really low as compared to personal loans from banks.

    But don’t take out an SSS loan and just spend the money recklessly. Use the cash to buy and sell something, or start a simple business.

  5. Hello Fitz,

    Is it wise to consolidate your debts through availing a personal loan? If not, are there any more methods to paying off credit card debt?

    Thanks! 🙂

  6. Hi Quirk,

    In most cases, it’s not a wise choice because you’ll only incur more interests as most personal loans have higher rates than credit cards. My advise is to do the math and simulate your payments in a worksheet to see if it’s really worth it.

    Also, I am not aware of any more methods that is as effective as the Debt Snowball Method (and it’s few variations). So I suggest you study that more.

  7. Yes, it can be done! Lifestyle change and financial empowerment are everything! My credit card troubles before may not be as hard, but it still required a lot of determination from me. Paid all my CC debts in a year’s time, but the amount is lesser than yours was. 🙂

  8. Sir,
    Thanks for sharing this post it somehow lighten my burden with my cc problems. pwede po mag tanong, i would like to cut off my cc and pay my account balance in a staggered term pwede po kaya yun? do i still need to write a letter or i’ll just call their collecting department and negotiate? thanks po

  9. So stress right now that me and my wife didn’t realize that debt ate all our salary and only a small piece of it going for our 3 childrent and for us. Stuck here in confusion on what to do to pay all of this and give a better life for us. Your blog is timely sir Fitz, I’ll this a shot cause I know it will my family the freedom that we are longing for. This is highly appreciated. Thanks…

  10. good heavens we have someone like you to enlighten us please do continue and you desrve a pat on the back for all your efforts!

  11. There are multiple kinds of wells. The ink well, the water well. the debt well, etc. More that ever after my relocation to the Philippines and marriage to my Beautiful Bride, our passion has become helping others climb out of that deep well of debt. Each and every person we help that ditches a high interest credit card debt or a pesky 5/6 loan hanging over them, we conceder yet another small business success. True enough that some people really never learn and will go right back to their old ways and plunge back into debt. That saddens me greatly. The good news and what gives us a “mental high,” the vast majority of our clients have become very responsible borrowers and some have have never borrowed again after becoming debt free.

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