Waiting To Budget Until You’re Debt-Free? That’s Not a Strategy — It’s Denial

If you’ve ever told yourself, “I’ll start budgeting once I’m out of debt,” you’re not alone — and you’re definitely not off the hook.

Here’s the thing: Business Insider reports that the average debt in America is over $105,000 across mortgages, auto loans, student loans, and credit cards.

Waiting to get your financial life in order after paying off debt might sound reasonable, but it’s kind of like saying you’ll start eating healthy after you lose weight. See the problem?

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“I made this exact mistake in my early 20s,” said Andrew Lokenauth, money expert and owner of BeFluentInFinance. He kept telling himself there was no point in budgeting when all his money was going to debt payments anyway.

“Looking back, it was pure avoidance behavior — I didn’t want to face the reality of my financial situation,” he said.

Budgeting isn’t just for people with extra cash — it’s a tool that can actually help you get out of debt faster. Here’s why avoiding it is less of a plan and more of a trap.

Also learn about some ways you can tackle your budget and manage your debt.

Delaying budgeting until you’re debt-free means missing out on essential financial habits, said Chris Heerlein, CEO of REAP Financial.

Budgeting helps you gain control over your money, track your expenses and save for the future, even while you’re paying off debt.

By budgeting now, you can develop the discipline needed to prioritize debt repayment while also making room for savings and emergencies.

“Without a budget, it’s easy to overspend and lose focus on financial goals,” Heerlein remarked.

Lokenauth similarly agreed, adding, “Without a budget, these money leaks just keep draining your accounts.”

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According to Heerlein, by organizing your finances and allocating a portion of your income specifically for debt, you’ll pay it off faster.

Without a budget, you might end up putting off debt payments or making only minimal progress, leading to more stress and delayed financial freedom.

By budgeting from the start, you ensure that every dollar works toward your goal of becoming debt-free, rather than just covering immediate expenses.

“An emergency fund is crucial to avoid setbacks like unexpected medical bills or car repairs, which can derail your financial progress,” said Heerlein.