How to Escape the Debt Trap
The painful but doable path to becoming debt-free.
“Sell the damn cars.”
“Put everything up for sale, your kids think they’re next.”
“You are freaking broke... you will not see the inside of a restaurant unless you're working there.”
“There's only one place you need to go to when you're broke and that is to get a job.”
These are all Dave Ramsey quotes, and he's arguably the best person to meet when you’re probably in debt up to your neck.
I've learned that it doesn't matter how much someone earns, if you're living life on autopilot, letting lifestyle creep get to you, there will never be enough.
And you will always feel like you’re not earning enough either. When you pair this with how easy it is to access debt, it’s the perfect recipe for disaster.
Most people just keep drowning in debt. And the funny thing is, the higher your income or social class, the higher the amount of debt you're likely to carry.
This is why when celebrities or ultra high-net-worth individuals go broke, they’re usually in debt to the tune of millions.
And when regular people go into debt, it’s still in proportion to their income.
So the first recommendation is almost always the same: sell all unnecessary possessions, pay down your debts, get on a budget, and start working a plan.
Those unnecessary expenses and possessions? They’re draining your cash anyway. Letting go of them and downsizing builds character, it teaches discipline and helps you appreciate the value of money.
“Put your kids on Craigslist.” lol
This was probably a slip of tongue from Dave, but yes, he once said this.
It shows the kind of intensity you need to bring when tackling debt.
If you don’t take it seriously, you’ll just keep managing and mending it, without ever making real progress.
What Causes Debt
1. Lifestyle Creep
This happens when, every time you hit a new financial milestone, you increase your spending right along with it.
You just got a new job? Great!
So you buy all the finest clothes, stop eating Shawa immediately, get all your favorite shoes and the rest… and just like that, your income is swallowed up by your lifestyle.
You won’t actually improve, financially.
2. Lack of Contentment
This is when you’re not satisfied with what you have, but instead of doing honest work to upgrade, you go into debt.
You start borrowing from friends, loan apps, and whoever else just to display a lifestyle you can’t maintain.
It’s crazy, but people really spend money they don’t have, to buy things they don’t need, to impress people they don’t even like.
3. No Emergency Fund
Sometimes we’re genuinely short on cash, and in those moments, people turn to debt to solve urgent needs.
But this is where an emergency fund comes in.
An emergency fund is simply a stash of money usually 3 to 6 months of living expenses set aside for, well, emergencies.
These are expenses you must deal with that would’ve otherwise pushed you into debt.
Now, this article isn’t about emergency funds per se, but let’s be honest, everyone is supposed to have one.
When unexpected expenses hit, your first option shouldn’t be debt.
What to Do About Debt
If you know you’re in debt —even if it’s airtime or data debt— you need to actively work on paying it off.
It’s not a good lifestyle to be (or stay) indebted.
Here’s what you can do:
1. List Out All Your Debts on Paper
Yes, paper. Not your phone. Not an app. Ink to paper.
Include:
The amount you borrowed
Who you’re owing (person or institution)
When you incurred the debt
The interest rate (if any)
The payment deadline (if any)
2. Make a Budget
Once you know what you owe, the next step is knowing what you earn—and how much of it can go towards debt repayment.
Write out your monthly income (from all sources). Approximations are fine if you're self-employed.
List your necessary expenses: food, rent, transport, etc.
Cut out the non-essentials: entertainment, restaurants, luxury treats.
Whatever is left? That’s your debt payment fund.
3. Start Paying It Down
There are two main strategies:
Snowball method: Pay off the smallest debts first.
Avalanche method: Pay off debts with the highest interest rates first.
I suggest you start with the Snowball method... so yeah, that means paying off that ₦800 airtime you owe MTN first… lol.
Author’s Note
I know how unrealistic it might sound to say “make a budget, cover your needs, and then use the leftovers for debt” when some people can’t even meet their basic needs.
But trust me, if you don’t make a budget and start controlling your spending, you never will. The cycle of debt will just keep getting worse. It’s up to you to take your life into your hands and do the needful.
Income is the first pillar of money management (remember, we discussed this two weeks ago).
So getting out of debt might mean:
Picking up a side hustle
Selling off some unnecessary stuff
Cutting back on those "treat yourself" moments
Whatever it takes… get out of debt.
Disclaimer: This is not official investment or financial advice. Please consult a licensed financial professional for specialized support.
Feel free to share your thoughts or the steps you’re planning to take to get out of debt. I’m here as an accountability partner if you need one.
If you found this helpful, pls forward it to people you know will find this helpful.
The man who wants you to be debt free,
Adedoyin