The Real Reason Many People Stay in a Debt Hole and How to Fix It.

Greetings, and welcome to the fourteenth edition of Wallet Wellness in 2025 - your midweek source of practical personal finance tips to elevate your money management skills.

We hope you had a chance to check out the last edition where we shared a step-by-step guide on how to stop living paycheck-to-paycheck. In today’s edition, we discuss debt and denial. The reason many people stay in a financial hole and how to fix it.

As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.

Let’s dive in! 

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Debt & Denial: The Real Reason Many People Stay in a Financial Hole and How to Fix It.😥 

Let’s be honest — debt is rarely just about numbers. It starts quietly. You miss one payment, then another. You avoid checking your balance. You delete the bank app. You tell yourself, “I’ll deal with it next month.”

It’s not that you don’t care — it’s that you care so much, it hurts to look. So you don’t. And that silence, that avoidance, turns into something deeper: denial.

Debt often comes wrapped in guilt, shame, and a quiet, stubborn hope that “things will get better soon.” But denial is expensive — emotionally and financially. And the longer it lasts, the deeper the hole gets.

In this week’s edition, we’re digging into why many people stay stuck in debt — even when they desperately want out — and how to start climbing out, both emotionally and financially.

1. Face the Numbers Without Fear 🧾

Avoiding your financial reality doesn’t make it go away—it just lets it grow in the dark. The first step is shining a light on what you owe.

• List everything you owe, no matter how small.

• Note the interest rates and minimum payments.

• Total it up. Breathe. Don’t judge yourself—this is just data.

2. Stop Normalizing Struggle 🚫

"I’ll always be in debt." "Everyone borrows to survive." "At least I’m not as bad as so-and-so." These thoughts sound harmless, but they quietly convince you to stay stuck. Financial struggle doesn’t have to be your lifestyle.

• Catch these thoughts when they come up.

• Challenge them with better ones: “I’m learning,” “I can change this,” “I deserve peace.”

• Surround yourself with voices that uplift your mindset around money. Read More.

3. Guilt is Not a Financial Plan 😔

Many people use guilt as motivation—but it usually backfires. You beat yourself up, feel worse, and then avoid your money issues even more. What you need is grace with accountability.

• Forgive yourself for past choices. Read More.

• Learn from them, but don’t live in them.

• Focus on your next best move—not your last mistake.

4. Small Wins Rebuild Confidence 💪🏾

If your debt feels overwhelming, the trick is to stop focusing on the mountain and start with a pebble.

• Pay off your smallest debt first (the "debt snowball" method).

• You could tackle the highest interest debts first (the "avalanche" method). Read More.

• Each win matters—it’s proof that progress is possible. Celebrate progress.

5. Seek Help Without Shame 🧑🏽‍🤝‍🧑🏽

Denial often thrives in isolation. But there’s power in community, in asking for help, in learning from others who’ve walked this road and made it out.

• Talk to someone you trust—an accountability partner, a financial coach, even a Sacco officer.

• Consider debt counselling or free financial resources available locally.

• You’re not weak for asking—you’re stronger than you know and wise. Read More.

Debt isn’t just about math—it’s about mindset. And denial, though understandable, is the most expensive mindset of all. You can choose differently. You can face it, fix it, and find freedom!

CONCEPT CORNER

How to Create a Debt Repayment Plan: The Snowball Method

The Snowball Method: This debt reduction strategy focuses on paying off smaller debts first while making the minimum payments on larger debts. Once the smaller debts are paid off, the payments that were going toward the smaller ones are applied to the larger ones, creating a snowball effect. Learn More.

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My 7-Year Experience Running a Spa Business - The Money and the Challenges

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Tips on Spotting the Best Business Opportunities.

We are now in the second quarter of the year. Perhaps you had a dream to start a business this year but are still wondering what to do? In this week's MoneyTok, we share five simple tips on how to spot the best business opportunities and make your dream come to life.  Watch the video and read more on this article to dive deeper.

@money254hq

𝟓 𝐓𝐢𝐩𝐬 𝐨𝐧 𝐒𝐩𝐨𝐭𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐁𝐞𝐬𝐭 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 Thinking of starting a business but not sure if your idea is good enough ? 🤔 Opportunit... See more

That's it for the fourteenth Wallet Wellness edition of 2025! We hope these financial tips have added some energy to your weekly hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week and watch out for Money Weekly.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

Money254 editorial team.