In our journey to financial empowerment, especially as women seeking to grow and protect wealth in a halal way, there’s a crucial step we cannot ignore: debt.
Before thinking about investing or growing your money, we must first clean the slate. That means understanding what debt really is, how it impacts your financial freedom, and how to eliminate it for good.
⚖️ What Is Debt?
At its core, debt is any money you’ve borrowed and are obligated to repay—often with interest, which adds another layer of importance to paying off debt quickly and responsibly.
📌 Types of Debt:
| Type | Description |
|---|---|
| Secured Debt | Backed by collateral (like your home or car) |
| Unsecured Debt | No collateral, like credit cards or personal loans |
🚫 Why Debt Is the Enemy of Investing
- Debt limits your freedom to make choices.
- Interest-based debt creates a spiritual and financial burden.
- Debt repayments (especially with interest) consume money you could be using to build your future.
In simple terms: you can’t grow wealth on shaky ground.
📈 Action Tip: Two Proven Methods to Pay Off Debt
You can choose either of these methods to start eliminating debt based on your personality and motivation style:
💥 The Avalanche Method – Smart & Strategic
- List all your debts from highest to lowest interest.
- Pay the minimum on all debts.
- Any extra funds? Direct them to the debt with the highest interest first.
- Move to the next highest once one is paid off.
✅ Best for: Those who are numbers-focused and want to save the most money long-term.
❄️ The Snowball Method – Motivating & Emotional
- List all debts from smallest to largest balance.
- Pay the minimum on all.
- Use extra cash to pay off the smallest first.
- Get a “quick win” and build momentum.
✅ Best for: Those who need motivation and visible progress to stay on track.
💬 “Choose the method that helps you stay consistent. Debt freedom is a journey—pick the path you’ll actually stick to.”
🛠 Tools to Help You
FinSHE provides easy-to-use templates to:
- Track all your debts in one place
- Calculate your payment plan
- Visualize your progress
If you’re joining one of our workshops or 1:1 sessions, you’ll get access to these tools as part of your financial roadmap.
✨ Final Thoughts
Investing is powerful—but not when it comes at the cost of debt lingering in the background.
Especially when dealing with interest, your priority should be to pay off debt first, build your emergency fund, and then step into investing with a clear conscience and strong foundation.
You deserve to build wealth from a place of integrity, clarity, and strength. Let FinSHE help you get there.