The Counterintuitive Rule That Breaks the Debt Trap
The smartest debt payoff strategy isn't what you think.
If you're working to pay off a mountain of debt, there's one step most people overlook:
you need to start saving while you're paying down debt.
I know it may feel counterintuitive. You might be thinking: “I have so much credit card debt—I need to pay it off before I even think about saving.”
But here's the truth: high-interest debt can take years to pay off. And without savings, you'll never get ahead—every emergency just pushes you deeper into the debt you're trying to escape. It's like trying to bail water out of a boat full of holes. Until you patch the leaks with savings, the debt keeps flooding back in.
Here's an example from a client of mine:
She owed $1,000 on a credit card with a $50 monthly minimum payment. One month, her partner got three paychecks instead of two, leaving them with an extra $1,000. The obvious choice seemed to be: “Let's pay off the credit card.”
But if she had done that, she would have only saved $50 a month. And sure enough, the very next month the car needed new tires—$800. With no savings, that $800 would have gone right back on the card. Back to square one.
Instead, I had her put the $1,000 into savings. When the car expense hit, she paid cash instead of debt and she was ecstatic! The debt balance didn't increase, and for the first time, she felt in control.
That's why your goal isn't just paying off debt. It's about building a stronger financial foundation so you can finally get ahead. That foundation looks like:
Paying bills on time so you stay consistent and build confidence
Staying out of overdraft so you're not starting each month in the hole
Stopping new debt from piling on so your balances actually shrink
Building savings while you pay off balances so you're prepared for life's surprises
Because life will happen—cars break down, kids need things, houses need repairs, and holidays come around. When you have this foundation in place, you stop relying on debt and finally start moving forward.
Even if it's just a little, find a way to add to savings each month—by trimming your spending, picking up a few extra hours, or asking for a raise. Every dollar saved is a step closer to freedom.
What's one small step you can take this month to build savings while paying down debt? Hit reply and let me know.
And remember if you ever want help implementing these moves, book a call with me and let's talk about it.
Disclaimer: I am an educator, not your personal financial advisor. Please make sure to do your own research before moving forward with any actions discussed in this blog post.
Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!