How to Get Out of Debt Forever (ICE Method)

As of 2022, the total American household debt was $16.9 trillion, with $986 billion in credit card debt alone!

Think about that.

That means that out of the roughly 340 million Americans, just about everyone could have some sort of credit card debt!

Just look to your left, the right, or even the mirror, and you will find credit card debt.

So why is that a big issue?

48% of people are depressed because of debt, per AIMS Public Health.

According to Bankrate, 52% of people have crippling anxiety so bad they dread leaving the house.

Even worse…54% of marriages end because of financial issues.

That is a damn shame.

People deserve better.

You deserve better.

And I want to help you today.

I have developed a simple method to help eliminate debt that anyone can use.

In this article, I will show you my ICE debt removal method.

I have used it myself to stay debt-free for 19 years, as well as help multiple military coworkers get out of $ 100,000 in debt.

So, if you want to find out how to properly identify your debt, master impulse spending, and build wealth for your family, you should read this now.

Enjoy!

What Is the ICE Method of Paying Off Debt?

I developed the ICE method a little while ago to help folks get out of debt easily.

It stands for Identify, Control, Erase.

Most of the properties you have heard of, such as budgeting, saving, and making more money, but what is missing from methods like the Dave Ramsey Baby Steps are things like accountability, financial freedom mapping, and practicing gratefulness.

That’s what makes this method so special.

Getting out of debt is so much more than budgeting and getting a side hustle.

A study from Census.gov showed that 90% of people fail to finish their daily to-do lists.

So imagine if you’re in debt and now you have another task you have to do, but you can barely finish the ones you already got?

Chances are very high that you will stay in debt!

So, with the ICE method, we try to make it easy enough so you can easily practice it daily. Still, it’s also packed with unique and simple tactics to eliminate the debt and dig deep and find its root cause so it never returns.

Because debt isn’t just buying things, and you owe money.

More than likely, you are making purchases for a dopamine fix or just to pass the time to hide a deeper issue.

But we got your back!

“Charles, I’m ready! Tell me more about this ICE method.”

Just keep reading, my friend, and find out!

Step #1: Identifying Your Financial Situation

Identifying your financial situation is THE MOST IMPORTANT STEP!

A lot of folks like to rush into something without reading the instructions a little.

Well, these instructions you must read.

When my wife was in college, she was always overwhelmed with writing papers.

She would say,” I’ve been working on this paper for five days, and it’s due in two days, and I have nothing to show for!”

She would equate “nothing to show” as “nothing on paper.”

She has been doing essential research for five days and drafted a pretty outline.

But her pretty outline looked like a blank piece of paper to her. Still, I saw it as a keystone to a document that will be filled out at lightning speed because she did the legwork for the research and comprehensive overview.

The first step of the ICE method is just like my wife writing college papers.

You must first pause, do research, and identify what is needed.

Otherwise, you will fail and will be in debt forever.

“Message received, Charles. I’m listening.”

With the Identify in the ICE method, you must Identify four things:

1. Every penny comes in and goes out.
2. What is your debt-free number or age?
3. The root cause of why you’re spending money.
4. What you want to do when you get debt-free.

So, let’s dive into a little more detail.

How to Account for Every Penny Coming In and Going Out

The first step you must take is to get some sort of budget app.

I highly recommend Every Dollar.

It does what the name says.

It accounts for every single penny going in and going out. 

They have both a free and paid version.

My wife has recently been using it for our budgeting and loves it.

It is very user-friendly and gives you a total picture of your finances; plus, if you get the paid version (I think it’s like $6 a month), you can sync your bank accounts, create goals to achieve, and much more.

Or, you can use a free tool such as Google Sheets.

This way is a little more work but can still do the trick.

What Are Examples of Things to Track in A Budget?

• Rent/Mortgage
• Utilities (Electric, Water, Gas)
• Groceries
• Entertainment (Eating Out, Movies, Concerts)
• Transportation (Gas, Public Transit)
• Debt Payments (Credit Cards, Loans)
• Personal Expenses (Clothing, Toiletries)

By tracking every penny going in and out of your bank account or wallet, you can now see where your money is going and where you may have room to cut back.

How to Determine Your Debt-Free Number or Age

This is also very important.

The debt-free number or age is like a motivational road map.

Once you identify it, you can check it daily, weekly, and monthly, and it will help you stay on track.

“But Charles, which one should I choose?”

Well, it’s really up to you.

Using the Debt-Free Number

When you use the debt-free number, you essentially just calculate your debt and chip away at that total number.

It’s that simple.

For example, if you have $10,000 in personal loans for flooring, $25,000 in consumer credit card debt, and $175,000 on a mortgage, your total debt-free number would be $210,000. (Yes, we’re counting mortgages. WE WANT TO GET RID OF ALL DEBT at the moment.)

So now, all you do daily is conquer that debt (those tips are soon to come).

Using the Debt-Free Age Tactic

This is my favorite.

It’s essentially a hybrid.

You find your debt-free number and adjust to the age you would like to be debt-free.

So, for example, like above, if you had a $210,000 total in debt, you are 30 years old, and you want to be debt-free by 50, you know all you need to do is pay off $10,500 a year.

But if you wanted to be debt-free by 40, you would need to hit the gas pedal, get some side hustles, and pay down $21,000 yearly.

Knowing where you stand in your debt journey is an intimidating and beautiful thing at the same time.

When you gather the courage to crunch the numbers, you make that first move in becoming debt-free and living the life you always dreamed of.

Finding the Root Cause of Your Spending Habits

Last but not least, finding the root cause of your spending habits.

Look, mortgages and student debt can sometimes just not be avoided.

But raising $30,000 or more in consumer debt and having $600 monthly car payments is a whole nother issue.

For example, I had a military subordinate who had $70,000 in credit card debt and personal loans combined.

During our feedback session, this came up.

I peeled the onion a bit. She stated she “needed” a wedding that cost $15,000 and then “needed” a new car that was $30,000 to celebrate and get her to her $5,000 honeymoon.

I told her those are “wants” and not “needs”. 

She could have had a courthouse marriage, buy a used car cash for a few grand, postpone the honeymoon or used the Armed Forces Vacation Club to find budget “hotel getaway” options.

I then peeled the onion a little more.

Long story short, she was depressed and having suicidal thoughts. (Side Note: She’s fine. We got her immediate help.)

She told me she does not like being alone because she has bad thoughts.

So, instead, she fills the space with purchases of things.

This led to follow-up sessions focused on self-reflection, self-acceptance, learning how walking, meditation, practicing gratitude, affirmations, healthy eating, and proper supplementation can help ease or eliminate those bad thoughts.

I won’t go too much into it, but there’s a book, I think, called The Comfort Crisis.

Essentially, when you have everything, you are not happy.

“There are two ways of being unhappy. Not getting what you want is one. Getting what you want is the other.”

-Eckhart Tolle.

I may be going off the deep end here, but what I’m trying to get at is it’s hard to be unhappy when you have something holding your attention or grateful for.

For example, when my coworkers are whining or complaining, they just slept in a warm bed in a warm house. They drove in a working car with working heat during the winter time, then come into work and have the ability to listen to music while they work eat from and endless lunch filled with goodies. They come to me and complain about how boring work is (I know, completely different than depression, bear with me)… 

I tell them to take their clothes off and then go take a naked walk.

They looked at me as if I was crazy and immediately said, “NO.”

I ask them, “Why no?”

They say, “Because everyone will see me naked!”

I say, “If you were forced to naked walk, would you be complaining about how boring work is, or would you be happy just to be working?”

They then return to work more motivated and focused on the task at hand.

So, back to my troop, if she had the focused ability of gratitude, she might not have spent so much.

TLDR:

Identify the root cause of spending, change the mindset to getting dopamine fixes from exercises such as walks versus impulse purchases, and you will be debt-free forever.

What You Want to Do When You Get Debt-Free

And the final step, what do you want to do when you get debt-free?

When I became 100% debt-free, I decided I wanted to start an online business so I could spend more time with my family, make a bunch of money, and have the opportunity to give back.

I want to give back to my parents.

I want to find a cause to donate to.

I dream of going to homeless shelters and schools in my new hometown and getting them all they need.

New books, supplies, beds, food, TVs, whatever.

If you have a fun goal in sight to accomplish another goal, it can make things much easier.

Before I drop my kids off at school, I ask them, “What is the most important thing you did today?”

They say,” Have fun, be kind to myself and others, and do good work.”

That is what life is about, especially the first part.

Somewhere along the path to adulthood, we forget that.

When you get in debt, fun really can get forgotten about.

Fun is often replaced with life’s stressors.

No more basketball with friends because you must go to your second job.

No more sitting on the front porch, just shooting the shit and enjoying the weather because you’re too busy balancing overdue bills from the debt collector.

At the beginning of your debt-erasing journey, set that “Fun Goal.”

And if times get tough while paying those dues, you can pause and look at why you’re doing it.

This will aid you with success.

Step #2: Control Your Debt

Start your engines!

Time to get this party started.

Step two in the ICE method is Control.

This is where the magic happens.

This is where you start paying off debt.

This phase is broken down into two sections:

• Manage Money
• Manage Mind

Let’s get right to it.

Manage Money

Okay, you apply the practical, concrete stuff during this phase to lower the debt number.

A lot of this you’ve heard before.

Make a Budget

Get Everydollar right now.

If you’re reading this, stop what you are doing, go to Ramseysolutions.com, and sign up for an Everydollar account.

It’s free and ridiculously awesome for helping you figure out where every penny is going.

Now that you have an account, know this.

 “93% of millionaires have a budget and stick to it.”-

The National Study of Millionaires

So now you’re not only on the path to paying off your debt, but you’re on your way to becoming a millionaire!

Use the Debt Snowball or Debt Avalanche

Both of these methods are great for paying off debt, but I’m a huge fan of the Debt Snowball because it’s so motivating!

Here’s how it works:

1. List out all your debts, from smallest to largest.
2. Continue making minimum payments on all your debts except the smallest one.
3. Put as much money as possible towards that smallest debt until it’s paid off.
4. Once that debt is paid off, add everything you were putting towards the smallest now to what you are paying toward the second-smallest debt.
5. Repeat this process until all your debts are paid off!

The Debt Avalanche method works similarly, but instead of starting with the smallest debt, you start with the highest interest rate.

This allows you to save money in the long run, but it may not be as motivating since it may take longer to pay off larger debts.

Choose the method that works best for you and stick with it!

Save 50% Off Your Paycheck

This, my friends, is where you start making those gains.

“50% Charles, that’s cray cray!”

I know, that’s because I’m cray cray.

But seriously.

If you master this, your debt will be erased.

“But Charles, how do I master the art of the 50% savings?”

Well, three ways for starters:

• Use Cash Only: When you do this, you create a mini-budget for when you go out. If you only have a set amount of money on hand, you have a greater chance of sticking to your list.
• Master No: “Sorry, I can’t go out.” Or if you go out pregame a meal and say, “No, I think I’ll just be drinking water.
• Master Impulse Spending: Sign up for my newsletter and get my free Impulse Buying Guide. It works wonders.

“Awesome, Charles. Any more money management tips in step 2?”

Yep!

Get Six Months of an Emergency Fund

“63% of workers are unable to pay a $500 emergency expense.”

-CNBC

I can’t stress this enough.

You need an emergency fund for at least six months of your ordinary expenses.

If you don’t start saving 50% and building an emergency fund, you will never get out of debt.

Why is that?

Because it’s an endless cycle of emptying your bank account, getting personal loans to cover the next expense, building more debt, getting stressed, consumer spending with money you ain’t got for dopamine fixes, and on and on and on.

Getting an emergency is the first step in getting that debt-breathing room.

It’s like a life raft.

If something happens, you’re not gonna drown.

You’re gonna take a hit, take a breath, then be able to get back on your feet.

Negotiate with Creditors 

A lot of folks don’t even go this route.

Be advised this is a route at which you should pause and do your research.

Start with a simple Google search, “How to negotiate with creditors.”

Take your time and go from there.

If you want to skip the research, check out apps and websites like SettleiTsoft.

BUT I CAN’T STRESS THIS ENOUGH: PLEASE PAUSE AND DO THOROUGH RESEARCH!

Read Books 

Another big thing that helped me stay out of consumer debt for 19-plus years and help others get out of $100,000 or more in debt was reading books.

Honestly, most of these books are not even directly debt-related.

They are just money-related, which helped me focus on that “What You Want to Do When You Get Debt-Free” part.

Here are some of the books that guided me to financial success:

• Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
• The Bogleheads’ Guide to Investing
• Retire Inspired: It’s Not an Age, It’s a Financial Number
• The Mood Cure: The 4-Step Program to Take Charge of Your Emotions–Today

That last book isn’t directly financially related.

It’s related to controlling your emotions, which is huge in paying off debt.

And we’ll discuss that a little more in the “Managing your Mind” here just in a second.

Make More Money

And last but not least, making more money.

If you want to make more money, it boils down to six different types of income:

1. Main Job: You just put in some extra hours to get extra cash flow here.
2. Side hustles: My favorite, this can help you gain some extra cash, learn new skills, or even start a new business. Fiver, Upwork, Steady, and Wyzant are good places to start.
3. Quick Money:  Here, we’re talking about websites and apps like Survey Junkie and OfferUp. Those are good for taking paid surveys while you watch a movie or selling things around the house.
4. Business: Like your side hustle, this can become a full-time gig. Take your freelancing skills and put them to use with some Facebook Ads or by putting together an LLC.
5. Passive Income: For me, Real Estate comes to mind. It’s not totally passive, but at my stage, it’s mailbox money with minimal effort.
6. Stock Investments: Here, you can make big dollars. When getting out of debt can be a last resort because it’s risky, but if you properly research and spend wisely, you can kill. *Again, this is not the best option while in debt, but I had to put it here to show that you can make money this way.

If I had to choose which money-making option is the best to make some extra cash to pay off debt, I would choose Main Job, Sidehustes, and Quick Money.

You can always get extra time at work.

It’s super easy to log into Surve Junkie while you watch a 3-hour Marvel movie and make $30 bucks.

And while you drive to work, instead of listening to music, you can listen to podcasts about side hustles like The Side Hustle Show.

When you’re trying to get out of debt, it boils down to two things: Saving more and making more.

So use those tips above and get the ball rolling now!

Now, back to the emotional/mental side of getting out of debt.

Managing the Mind

This, by far, is the most overlooked aspect of getting out of debt.

Dave Ramsey and many others preach about saving, emergency funds, etc.

But they miss identifying the root cause and developing game plans to help you look at money as a tool for financial freedom instead of a quick getaway.

Once you master the mind, money becomes a second thought in life.

When you master the mind, a large bank account will follow.

So, how do you master the mind?

Here are a few tips:

Discipline

“Discipline is the bridge between goals and accomplishments.”

—Jim Rohn

Emotions fuel motivation.

Let’s use marriage as an example.

When you first get married to your partner, you are truly madly deeply in love.

You have the motivation to “Be happily in love forever!”

Then life hits.

Someone gets fired.

A child enters life.

Both parties are no longer sleeping.

Life sucks.

Everything is annoying.

You start to question if you can do this marriage thing anymore.

That’s what motivation does.

Discipline, on the other hand, says, “I married her for a reason.”

“The first day I met her, it was as if time stood still. She was breathtaking.”

Discipline takes that happy feeling and tries to capture it over and over and over again because discipline knows that motivation will fade. Still, discipline wants that feeling of joy and love to visit often.

“Emotion is just energy in motion.”

My wife shared that quote with me.

Ever since then, when I get a surge of dopamine to do something, whether a business idea or something, I tell myself, “The emotions are high; they will fade. Make a logical checklist as to why the emotions are high so I can continue my path when they subside.”

Okay, back to the marriage example…

You were motivated to get married because of the surge of emotions.

But disciplines such as monthly date nights, gratitude journals as to why you love your spouse, and daily walks holding hands that’s the shit that makes marriages last.

Thats discipline.

Discipline gives you what you want.

If you want to be debt-free, you must have it!

“Charles that’s faaaaaaaaaanttasttic stuf. But how do I get disciplined?”

Here’s some tips:

• Read The Mood Cure: The 4-Step Program to Take Charge of Your Emotions Today: Start here, read this because this will help you understand your mind and why you make decisions.
• Get an Accountability Buddy: Join a Facebook group, tell a family member, or even use an app like Getsupporti
• Trackers: Go to Etsy and get a cheap $5 discipline tracker. Print them out and put them everywhere.
• Vision Board: Visit Canva and build a vision board. It’s free! Or you can old-school it and go to Target, get a whiteboard and supplies, and go from there!
• Focus Exercise: Upon waking up and before sleep, close your eyes and meditate. Pick a goal and “Say it, See it, Feel it.” I use this. Mine is,” I’m a successful blogger who makes over $100,000 a month.” I picture myself on a boat with friends; they’re asking me how I made money. As I tell them how I feel excited and joyful.”
• Project Management App: Go to UpBase, sign up for a free account, and start keeping track of your goals.
• Follow the 2-Day Rule: If you go over two days without executing your game plan toward your goals, return to it. It’s easy to say, “Oh, I went two days; I might as well quit!” But this rule lets you know missing a day or two is okay. Streaks can get broken, but you can get back to it.

If you follow all of those, it’s nearly impossible not to have killer discipline.

Daily Gratitude

Next in the debt-conquering phase is gratitude.

This is very powerful.

If you can be happy with working hands, legs, eyes, etc., you eliminate consumer spending.

Your savings increase, and the debt begins to disappear.

Let’s dive into some practical tips:

• Meditate 15 Minutes a Day: Reference above, “Say it, See it, Feel it.”
• Practice Old Man Scenario: When you wake up, take 15 minutes and pretend you were 80 years of age just the night before. Now, be excited that you are no longer in pain, you can jump and run, and your wife is young again. Do this, and I swear you will just be happy to be able to move like you were young and healthy again.
• Spend 5 Minutes a Day Looking Through Old Pictures: This will make you thankful for what you have. Your beautiful partner. Your beautiful kids. Your beautiful self.
• Volunteer: My mom passed when I was in 2nd grade. But before she passed, we did Meals on Wheels. The feeling of seeing those in need of food and love when they open their doors to a young child and loving woman stuck with me. It made me grateful for the awesome team around that I have today.
• Journal: The classic. Get a notebook and jot down three things that went well daily and three things you’re grateful for. That’s it.

Gratitude is a limitless superpower you can use to help you blast through debt, and it costs absolutely nothing.

Focus on Physical Fitness Goals

Mind and body are connected.

Try walking 10,000 steps in one day.

Your mood will boost, and you’ll be less likely to want to buy something off Amazon when you’re done.

Now, try fasting for 36 hours.

You’ll be angry and want to buy random food things you’ve never even tried!

The point is that you can alter your mood if you alter your physical state.

So, if you’re constantly getting consumer goodies from the computer, try these tips:

• Walk 8K Steps a Day: Just like the one stated above. Move your feet, and you will feel better. If you feel better, you will be happy with what you have and spend less. I don’t have to bring any studies to prove that. I challenge you to find out!
• Master a 12-Hour Fast: About 95% of serotonin is produced in the gut. Serotonin is the “happy molecule”. Fasting can raise healthy gut bacteria. So, for example, a 7 pm-7 am fast may be beneficial in combatting bad moods, which lead to spending.
• Sleep: Sleep! At least 8 hours of bedtime. You can do many things, but try reading the Mood Cure to help you get those Zzzs to fight the moody spending sprees.
• Eat Whole Foods: Simple. If it’s a fruit, vegetable, grass-fed/organic meat, free-range eggs, have at it. Nowadays, you can get affordable healthy foods at places like Costco and even Walmart!

Use those tips, increase your mood, and spend less!

This comes from experience. I have eaten like shit and spent like shit. I got healthier, felt better, and the bank account grew!

Now, on to the next mind management tips.

Dopamine Fast

There’s some science behind this.

Not gonna go into too much.

Google “Andrew Huberman dopamine fast” if you want to know more.

But…

It’s essentially delaying gratification on things you regularly do that bring you joy to increase discipline/dopamine hits on the things you don’t want to do.

So, in this instance, making saving money fun.

I can attest to the whole dopamine fast thing and helping me enjoy “boring” things.

“Oh, Charles, how did you do it?”

Okay, I’m not a pro, but here’s what I did to get results:

• For one week, say no to 15 things daily, and you usually say yes. So, for example, work without music, drive without music, don’t Doom Scroll, don’t triple-check that the coffee maker is off, don’t watch TV at night, and ignore the Firefox splash page news articles.

Just do a bunch of little things like that, and before you know it, you will enjoy doing things like work or maybe even the dishes.

Invest in Yourself

Last but not least, just invest in yourself in the manage mind phase.

What do I mean?

Watch free YouTube videos about budgeting, investing, or side hustles.

For example, I became a millionaire with real estate while in the military because, on my limited off time, I invested in myself by watching free videos on how to make money.

I did not spend one penny on that knowledge.

The whole time, I was learning and saving, and when I knew enough, I had saved enough to take action on that plan.

If you do the same and get addicted to learning vs. spending, you will conquer debt in months vs. years.

Step #3: Erase

You’ve made it to the last phase!!

This is where stuff gets awesome.

You now have all the tools to start kicking butt.

But what exactly is the Erase phase?

It’s the phase where you make sure debt never ever comes back.

And you do that with the following stages below:

1. No Unnecessary Consumer Debt: Things such as credit card debt, personal loans, and payday loans.
2. No Debt Period (My Favorite): Become completely debt-free! So, no car payments, no mortgages, no nothing! This is the most stress-free way to be. I can speak from experience. (leveraged debt is a whole nother subject for a later time.)
3. Your Net Worth is Equal to Your Previous Debt: If you had $80,000 in debt, you aim to achieve $ 80,000 net worth.
4. Your Annual Income is Equal to Your Previous Debt: If you had $80,000 in debt, aim to achieve $80,000 of gross annual income.
5. Your Monthly Income is Equal to Your Previous Debt: Baller status. If you had $80,000 in debt, you aim to achieve $80,000 gross income monthly. Get those Everest goals.

The whole purpose of this Erase step is to make debt your bitch.

It held you down long enough.

Now you’re gonna erase it and make so much damn income that it is impossible to come back.

You suffered enough.

Now, it’s time for you to run your life, not debt.

Recap

Dude or dudette, here’s what we went over:

• The ICE method stands for Identify, Control, Erase.
• Before you even start to pay off debt, you need to Identify every penny coming in and going out, what is your debt-free number or age, the root cause of why you’re spending money, and what you want to do when you get debt-free.
• Next, you need to control your debt by doing things like making a budget, saving 50% of your paycheck, working on your discipline, and practicing gratitude.
• Finally, erase that fucking debt. Show it who is boss by eliminating all of your debt and then creating monthly or annual income greater than the original debt amount so it never shows its face again!

Look, life is friggin tough.

You can make it easier.

Debt destroys relationships.

It kills your sleep.

It steals time.

Do yourself a favor.

If you are in debt seriously, consider looking into this ICE method.

I watched my parent’s relationship suffer because of debt.

I watched countless military coworkers get divorced because of debt.

Start taking action today.

One penny at a time.

One money-saving walk at a time.

Before you know it, you’ll be stress-free doing whatever you want!

Take care.

Thanks for reading, and have a blessed day.

Peace!