How to get out of debt: A practical guide to taking back control

Arrie Pieterse -

When Lindiwe opened her banking app one Saturday morning, she felt that familiar knot in her stomach.

The balance was lower than she’d hoped.

Even though payday was just last week.

But here’s the thing: Lindiwe’s situation isn’t unique. Most of us have been there.

Debt has a way of sneaking up on us. A swipe here, a new appliance on the credit card, a quick loan there, until suddenly it feels like we’re working just to stay afloat.

Debt affects more than your wallet; it impacts your sleep, relationships, and even your future decisions. But here’s the good news: debt doesn’t have to be forever. With the right debt repayment strategy, you could soon be back in control of your finances.

That’s why we created the Wealthbit Debt Repayment Strategies workbook. It’s a practical tool that helps you to build a system that works for you.

It does this by helping you:

  • Map out all your debt
  • Estimate how long it will take to pay them off
  • See how different repayment strategies can change your timeline

Get the free workbook here:

The vicious cycle of debt

South Africa’s household debt-to-income ratio sits above 113%, with higher-income earners facing ratios closer to 187%. That means for every rand earned, many households owe nearly two.

People often stay stuck in debt because of a few common traps:

  • An avoidance mindset, where they pretend the debt doesn’t exist.
  • The minimum payment trap, where they only pay enough to avoid penalties but end up stretching repayment over years.
  • The lifestyle creep, where spending rises with income instead of going toward debt.
  • Emotional spending, where shopping becomes a way to cope with stress or boredom.

Recognising which of these patterns affects you is the first step in breaking free.

Step 1: Map out your debt

Debt isn’t all bad - a home loan or student loan can be an investment in your future. But credit cards with 20%+ interest? Those can keep you stuck.

Go to your workbook and take a few minutes to list every debt you have, including:

  • Type of debt (credit card, car loan, personal loan, etc.)
  • Balance (a rough estimate is fine)
  • Interest rate (look it up if possible)
  • Monthly payment (the amount you are currently putting towards this debt)
  • Term (how long you have to pay it off)

Yes, seeing the full picture can be scary. But see it as empowering, instead. Now you know what you’re working with.

Step 2: Take a moment to reflect

Think about which debt feels the most overwhelming, which one you could pay off first, and how seeing everything listed out makes you feel. Is that relieved, stressed, motivated, or something else?

Why it matters: It’s important to reflect on these so you can move forward strategically and set the right priorities.

💡Quick tip: Not all debt is created equal.

Credit card debt often carries the highest interest rates at 18% to 30%, so it’s generally a good idea to prioritise paying it off first. But, that really depends on how you tick.

Step 3: Choose your repayment strategy

It’s best to pick a  repayment strategy that keeps you motivated:

  • Snowball method: Here, you pay off your smallest debt first by adding a little extra every month, then roll those payments into the next smallest. This gives you quick wins and builds momentum.
  • Avalanche method: With this strategy, you’d pay off the highest-interest debt first. This saves you the most money over time, but it can take longer to feel substantial progress.

Pick the method in the dropdown that makes the most sense to you. See how your debt repayment timeline changes in the graph below.

There’s no wrong choice: The best method is the one you’ll actually stick to.

💡 Tip: If motivation is hard for you, choose snowball. If you want maximum savings, choose avalanche.

Now, look at the ‘Additional monthly debt payment’ in the workbook. This number is where you decide how much you want to pay additionally per month towards the highest-interest or smallest debt, depending on your preferred method.

For now, add in something small like R100 or R300.

Notice how your repayment timeline and balances change in the workbook graph.

Step 4: Make the plan real

Now check your repayment plan against your budget:

  • Does your monthly repayment amount fit with your current spending?
  • If not, where can you adjust: takeaways, entertainment, subscriptions?
  • Could you commit to a short-term cutback (3–6 months) to clear one debt faster?

Even small adjustments, like meal prepping instead of buying lunch a few times a week and redirecting that money, add up fast.

Step 5: Stay on track

Before you begin, identify potential roadblocks:

  • Unexpected expenses
  • Emotional or impulse spending
  • Motivation dips

And plan for them now:

  • Automate your payments so you’re never tempted to skip.
  • Build a small emergency fund (even R500/month) to avoid taking on new debt.
  • Review your plan monthly and adjust if life changes

It might feel strange at first to aggressively pay off debt, especially if you’re used to having extra cash for fun spending.

But remember: this is temporary. Every payment you make is buying back your freedom.

Step 6: Commit to your next action

To stay accountable, write down one thing you’ll do this week:

  • Increase your payment by R500
  • Cancel one subscription
  • Set up your first automatic payment

This tool is also used in the Financial Freedom Programme - designed to reduce your team's financial stress and improve their setup.

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