Having a high income and still not being able to sleep because of debt is more common than you think. It happened to... Frank González When he was a bank manager and university professor, he managed more than eight credit cards and faced a financial crisis that even prevented him from getting married, despite earning a good salary. His escape wasn't a stroke of luck, but a deliberate decision and a well-defined method. In this article, you'll learn how to get out of debt with a structured plan and without jeopardizing your business. If credit cards have you trapped, this guide shows you how to move from debt to purpose without sacrificing your business in the process.
First, change the story you tell yourself.
The problem of debt is rarely just mathematical; it's emotional. As long as you see it as a shameful secret to hide, it will continue to grow in the shadows. The first step is to bring it into the light: accept the real number, without sugarcoating it, and understand that getting out of debt is entirely possible. Frank describes it as an internal turning point, the moment he decided to apply different principles to his financial life. Your way out also starts in your mind.
Step 1: Perform a complete diagnosis
You can't beat an enemy you can't see. Take a sheet of paper—or a spreadsheet—and write down every credit card and every debt with three pieces of information: balance, interest rate, and minimum payment. Add up the total. Yes, it's going to hurt. But that number is your starting point, and for the first time, you'll know exactly what you're up against.
Step 2: Separate business finances from personal finances
One of the most frequent causes of entrepreneurial debt is mixing business and household funds. When everything comes from the same pocket, credit cards end up plugging operational gaps that the business should be covering with its own cash flow. Open separate accounts, set a fixed salary, and let each side—business and home—operate independently. This simple decision will stop the bleeding.
Step 3: Choose your strategy to get out of credit cards
There are two proven methods, and both work. The key is to choose one and be consistent.
Avalanche method: You pay off the card with the highest interest rate first, while making minimum payments on the others. This is the least expensive option in the long run because it tackles the most expensive payments first.
Snowball method: You pay off the smallest debt first, regardless of the interest rate, to achieve a quick win that motivates you. It's the best strategy if you need to see progress to avoid giving up.
If you're highly rational, go for the avalanche. If you need emotional fuel, start with the snowball. The worst strategy is having none.
Step 4: Increase oxygen, not just cutbacks
Getting out of debt isn't just about tightening your belt; it's also about generating more income to accelerate your progress. As an entrepreneur, you have an advantage an employee doesn't: you can sell more. Launch a promotion, offer an additional service, charge what your work is truly worth. Every extra dollar you put toward paying down debt brings you weeks closer to freedom.
Step 5: Build a cushion to avoid relapse
Many people pay off their credit cards only to fall back into debt within six months because they never built an emergency fund. As soon as you start making payments, set aside a fixed percentage for a cushion that will cover three to six months of expenses. This fund is what will prevent the next emergency from sending you back to the credit card.
To learn more, check out our guide to Principles for organizing your business finances And, if the problem is capital, it evaluates formal options such as the ITIN business loans before using more cards. You can also consult the free resources in Spanish of the CFPB on debt management.
From debt to purpose
When Frank González finished paying off his debts, he not only regained his peace of mind: he got married, found a new purpose, and ended up dedicating his life to social entrepreneurship and financial education. That's the true reward of being debt-free: it's not just about being free of debt, it's about regaining the freedom to pursue what gives meaning to your work. Debt ties you to the past; financial order gives you back the future.
Frank González's full story—from financial crisis to purpose—is in issue 36 of Hispanos Emprendedores. Read it and take the first step toward your own financial freedom.
