Debt can feel like a heavy backpack you never take off especially when you’re juggling multiple small debts at the same time. It’s easy to feel stuck, stressed, and unsure where to begin. But here’s the good news: small debts are the easiest to tackle, and paying them off can give you a quick win that boosts your confidence and momentum.
You don’t need a huge salary or a financial degree to start paying off your debts. What you need is a simple plan and the right mindset. This guide will show you how to deal with small debts without the overwhelm, step by step.
Face the numbers
Know What You Owe
The first step is to stop avoiding your debt. Gather all your small debts in one place. This might include:
- Credit cards
- Personal loans
- Buy-now-pay-later balances
- Online loan apps
- Money borrowed from friends or family
Create a simple list or spreadsheet that includes:
- Total amount owed
- Monthly payments
- Interest rates (if applicable)
- Due dates
💡 Example:
- Credit card: ₱6,000 @ 3% interest/month
- Loan app: ₱2,500 due in 2 weeks
- Friend: ₱1,000 no interest
Once you see the full picture, it becomes easier to plan your attack.
Step 2: Choose your strategy
Debt snowball vs. Debt avalanche
There are two popular strategies to pay off small debts, and both can work well depending on your personality and goals.
The debt snowball (Great for Motivation)
You pay off your smallest debt first, then move to the next smallest.
Why it works: You see quick wins, which helps you stay motivated.
✅ Example: Pay ₱1,000 to your friend → then ₱2,500 loan app → then ₱6,000 credit card.
The debt avalanche (Best for saving on interest)
You pay off the debt with the highest interest rate first, while making minimum payments on the rest.
Why it works: You save more money in the long run.
✅ Example: Pay off credit card first (₱6,000 @ 3%) → then loan app → then friend.
Choose the one that feels more doable for you. The most important thing is to start.
Step 3: Create a simple repayment plan
Fit it into your budget
Look at your current income and expenses. Find out how much you can afford to pay toward your debt each month—even if it’s just ₱500 or ₱1,000.
Cut back on non-essentials like:
- Daily milk tea or coffee
- Subscription services
- Online shopping
Step 4: Automate and track progress
Stay on track without the stress
If possible, set up automatic payments so you don’t miss any due dates. Missing payments adds interest and late fees which can make small debts grow quickly.
Use a notebook, budget app, or calendar reminder to track:
- How much you’ve paid
- How much is left
- Your debt-free target date
Watching the balance go down can be incredibly motivating.
Step 5: Reward yourself (without spending more)
Celebrate small wins
Every time you finish paying off one debt, celebrate it but in a way that doesn’t add more debt.
- Treat yourself to a free activity you love
- Take a break and relax
- Share your progress with a trusted friend
This positive reinforcement helps your brain associate debt repayment with success not suffering.
Paying off small debts doesn’t have to feel overwhelming. By facing your numbers, choosing a strategy, creating a realistic plan, and tracking your progress, you’ll take back control of your finances one step at a time.
Remember, it’s not about how fast you go. It’s about staying consistent and building healthy financial habits that will serve you for life.
You’ve already taken the first step by reading this. Now take the next one—your future self will thank you.
