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 How to Get Out of Debt: Is Your Money Mindset Keeping You Stuck?

You want to get out of debt. You've listened to the podcasts, read the books, maybe even signed up for a financial program. You've tried to make changes, but somehow your credit card balances keep climbing, unexpected expenses keep showing up, and your financial situation isn't looking much better.

So whose fault is it?

Your employer? The economy? Your spouse? The cost of groceries? Maybe even the financial expert whose advice you were following?

In this episode of Naked Money Meetings, Erin Skye Kelly and Keri Blakeney unpack a surprisingly common obstacle to financial freedom: the victim mindset around money. And before you roll your eyes, this isn't about blaming yourself for every financial challenge life throws your way. It's about recognizing where you have control and what you can do differently.

Because getting out of debt isn't just about knowing what to do. It's also about being willing to do it.

Why Are You Still in Debt Despite Trying to Get Ahead?

This episode starts with an email from a frustrated listener who has followed Erin's financial advice but somehow ended up deeper in debt.

There's credit card points, new car payments, home renovations, investing an emergency fund, and a whole lot of frustration directed at Erin.

It's a conversation that might make you laugh, but it also raises an important question: Are you actually following a plan to get out of debt, or are you making exceptions every time something more appealing comes along?

As Erin explains, wanting financial freedom and making the decisions that lead to financial freedom aren't always the same thing.

What Is a Victim Mindset Around Money?

A victim mindset happens when you believe your financial circumstances are controlled entirely by other people or external situations.

It sounds like:

• I'd be out of debt if my employer paid me more.

• I could save money if groceries weren't so expensive.

• My spouse is the reason we can't get ahead.

• I'll start budgeting after the holidays.

• There's no point trying because something unexpected always happens.

Some of these frustrations are completely legitimate. Life isn't always fair, and financial setbacks are real.

But Erin makes an important distinction between acknowledging what has happened to you and believing you have no power over what happens next.

That's where financial accountability comes in.

How Does Taking Ownership Change Your Financial Future?

Taking ownership doesn't mean accepting blame for everything that has gone wrong.

It means recognizing that regardless of how you arrived at your current financial situation, you are responsible for your next decision.

Erin Skye Kelly knows firsthand what it's like to struggle with debt. Through her own financial transformation and her bestselling books, Get the Hell Out of Debt and Naked Money Meetings, she has helped people understand that building wealth requires more than good intentions.

It requires action.

You might not control inflation, interest rates or your employer's decisions, but you can start taking control of your household finances.

And sometimes that starts with a decision that feels uncomfortable.

Why Is Budgeting Essential for Getting Out of Debt?

If the word budget makes you want to run in the opposite direction, Erin has some thoughts about that.

In this episode, she explains why understanding your numbers is essential to paying off debt and building wealth.

A budget isn't about staring at everything you've done wrong. It's about creating a plan for where your money needs to go.

It also helps you understand:

• How much money is coming in and going out.

• Where you may be overspending.

• How much you can realistically put towards debt.

• Whether your net worth is moving in the right direction.

And if you hate the word budget? Call it a cash flow plan, a sunshine list or whatever makes you comfortable.

Just make sure you're actually paying attention to your money.

Why Do You Need an Emergency Fund Before Investing?

Credit card rewards can be tempting. So can the idea of having your emergency savings invested in the stock market rather than sitting in a savings account.

But what happens when your furnace dies, your car needs repairs or an unexpected bill lands in your lap while the market is down?

Suddenly, that emergency fund isn't available, and the credit card becomes the backup plan.

Erin explains why having accessible emergency savings matters, particularly when you're working to get out of debt.

The goal is to stop relying on borrowed money every time life throws you a curveball.

What Is the First Step to Stop Creating More Debt?

If getting out of debt feels overwhelming, you don't need to fix your entire financial life overnight.

Start by focusing on one thing: stop creating new debt.

For the next 30 days, pay attention to your spending, look honestly at your balances and start identifying the decisions that are keeping you stuck.

You don't need a perfect economy, a perfect budget or a perfect financial past.

You need to participate in your own financial rescue.

And that starts with the next decision you make.

Key Takeaways

Getting out of debt requires more than good intentions. Here are the big lessons from this episode:

• Take ownership: You may not control how you got into debt, but you can control what happens next.

• Know your numbers: List every account, credit card, loan and outstanding balance.

• Stop creating new debt: You can't successfully pay off debt while continuing to add to it.

• Build an emergency fund: Have accessible savings so unexpected expenses don't automatically go onto a credit card.

• Make budgeting work for you: Your budget should fit your lifestyle, not the other way around.

• Focus on small changes: You don't have to transform your entire financial life overnight.

• Participate in your own rescue: Start making decisions that move you towards financial freedom.

  Ready to stop making excuses and start making progress?

  This episode of Naked Money Meetings is a good reminder that financial freedom starts with the decisions we make every day.

  Listen to the full conversation with Erin Skye Kelly and Keri Blakeney to hear the listener's email, Erin's honest response, and why taking ownership of your financial future might be the most important step towards getting out of debt.

  Because nobody is coming to wave a magic wand. It's time to take the wheel.

   

  Listen on Apple: https://podcasts.apple.com/ca/podcast/your-money-changes-when-you-do/id1462338073?i=1000791976598

Resource Links

• Erin Skye Kelly’s Book: Get the Hell Out of Debt
• Erin Skye Kelly’s Book: Naked Money Meetings  

Helpful external financial resources:

• Financial Consumer Agency of Canada: Making a Budget 

• Financial Consumer Agency of Canada: Paying Back Your Debt 

• Financial Consumer Agency of Canada: Setting Up an Emergency Fund 

These resources offer practical guidance on budgeting, managing debt and preparing for unexpected expenses.  

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