Can You Really Be Debt-Free on Your Income? Yes—Here’s How
Let’s be honest. One of the most common beliefs out there is this:
"I don’t make enough money to ever be debt-free."
It sounds reasonable. It even sounds responsible. But here's the truth: that belief is holding you back from a level of freedom you may not have even imagined yet. If you’ve ever nodded along to a friend or thought to yourself “That’s just life in this economy”—this blog post is your wake-up call.
Debt freedom isn’t reserved for people with six-figure incomes. It’s available to anyone willing to shift their mindset, make a plan, and take bold, consistent action. So let’s unpack how that works, why income isn’t the barrier most people think it is, and how you can actually start today—no matter what your current paycheck looks like.
The Truth About Income and Debt
Here’s the myth:
“If I made more money, I wouldn’t be in debt.”
Sounds logical, right?
But take a closer look and you’ll see that income isn’t the main factor determining whether someone is drowning in payments or completely debt-free. Some people earn $50,000 a year and manage to pay off $60,000 in debt. Others earn $300,000 and struggle to manage a $10,000 credit card balance.
What gives?
Debt freedom isn’t about numbers. It’s about mindset and margin—the space between what you earn and what you spend. And while budgeting is important, the real key is making intentional decisions that support your goals, not your impulses.
Let’s walk through the practical steps to go from buried to debt-free—no matter your starting point.
Step 1: Make the Decision
Before anything else changes, your mindset has to.
You have to decide that you’re going to live without debt. That means no new loans. No more “just this once” credit card swipes. No “I’ll pay it off next month” rationalizations.
You decide—and that decision becomes the anchor for every financial choice going forward.
And no, this doesn’t mean living without joy or fun. It means aligning your money with your values and living from a place of purpose, not pressure.
Step 2: Create Margin in Your Budget
Margin is the magic word when it comes to debt freedom. Without margin—aka extra room in your budget—you can’t make extra payments, build savings, or breathe easy.
There are only two ways to create margin:
Cut expenses
Increase income
And while both are important, most people stop at cutting—and wonder why they’re still stuck.
Cutting Only Goes So Far
Yes, cancel those unused subscriptions. Dine out less. Trim the grocery budget if you can. But let’s be real—you still have to eat, still have to keep the lights on, and still want a life.
So eventually, you hit a wall. That’s where increasing income comes in.
Step 3: Increase Your Income—The Smart Way
If you’re serious about paying off debt quickly, increasing your income is your secret weapon.
Here are a few strategies that work across different situations:
1. Ask for a Raise (Especially If You Haven’t)
If you’re in a long-term role and you’ve never asked for a raise—this is your moment. Here’s how to do it the right way:
Go in with humility, not entitlement. Instead of saying “I deserve more,” try, “I’d love to grow in my role here—what can I do to add more value and increase my compensation accordingly?”
Do your homework. Use sites like Glassdoor to research what others in similar roles are making.
Be confident but open. The combination of clear data + a growth mindset is powerful—and persuasive.
Women, especially, tend to wait too long or never ask at all. If that’s you, consider this your nudge: set a date, make a plan, and have the conversation.
2. Make a Career Change
If you know deep down your current role is underpaying you—or just doesn’t align with your strengths—it may be time to make a change.
Career changes don’t happen overnight, but they do start with a plan:
Identify the role or industry you want to move into
Research necessary certifications or experience
Build a transition fund if needed
Network intentionally—start conversations now, not later
You don’t need to be debt-free to switch careers, but you do need to be strategic. If the leap looks big, remember: it’s okay to build a bridge.
3. Start a Side Hustle
This doesn’t have to mean launching a brand or building a full business (unless you want to!). Side hustles are about quick, doable wins.
Here are some popular—and profitable—options:
Babysitting or pet sitting (yes, really)
Freelance work (writing, design, virtual assistance)
Gig economy jobs (delivery, tutoring, driving)
Seasonal retail work or weekend shifts
Remember, this doesn’t have to last forever. As one dad wisely put it: “You can stand on your head for 30 minutes if you know when it’s going to end.” Short-term hustle with a clear goal? Worth it.
Step 4: Sell What You Don’t Need
Decluttering your space and building your debt snowball? Yes, please.
Start with the big-ticket items you no longer use—guitars, electronics, outdoor equipment, even a second car or boat. These one-time sales can give your budget an instant boost.
Then move on to a classic garage sale or Facebook Marketplace run. You’d be amazed at what people will buy—and how fast your living space clears up in the process.
And if you want to get scrappy, buy low and sell high. Plenty of people flip items from thrift stores or garage sales and build $1,000+ per month side businesses from home.
Step 5: Reframe What Debt Freedom Actually Means
Here’s where it gets exciting.
Paying off your debt isn’t just about removing a burden—it’s about giving yourself a raise.
Let’s say your minimum monthly payments add up to $1,200. Once your debt is gone, that’s $1,200 back in your life every single month. That’s money for savings, travel, generosity, investing, breathing room… whatever you want it to be.
Too often, we associate debt freedom with sacrifice. But the truth? It’s about expansion. More options. More peace. More power.
So ask yourself:
What would you do with an extra $1,200 a month?
Let your answer motivate the next decision.
You Are the Deciding Factor
This isn’t about blaming yourself for being in debt—it’s about empowering yourself to take ownership of what comes next.
Your income doesn’t define your future. Your choices do.
You don’t need to wait for a better-paying job to start paying down your balances. You don’t need to hit the lottery or marry rich or sell your house to make progress. You need a decision, a plan, and the willingness to take one brave step at a time.
Because being debt-free isn’t a dream. It’s a choice.
And it’s available to you—right now.
Rather Listen?
