Hi friends, and thanks for stopping by to read about how to ask ChatGPT: what’s the best way to tackle debt?
Have you used ChatGPT yet? It’s a conversational artificial intelligence chatbot. You type in a question and it answers in a conversational style tone.
ChatGPT is one of my travel tools. When I’m looking at several hotels in an unknown town, I’ll ask ChatGPT which one they recommend based on my requirements. I’ll also ask ChatGPT for recommendations. Sometimes I’ll ask for an itinerary of things to do in a new place.
If you haven’t done so, give it a try. You can’t beat free advice!
Busting debt
I’ve written a few articles here about busting debt. I know what it’s like have tons of credit card debt and personal loans to repay.
Trying to pay off debt when I was in a relationship with someone who was financially irresponsible was very frustrating. As fast as I could pay something off, he’d go out shopping and run up the credit card bill again.
I did a lot of reading – books, forums, blog posts – trying to figure out how to pay off debt. When I became single and still struggling to pay off debt, I realized that most of the articles were written about people who weren’t like me. Most of them were couples and one or both were earning $100,000/year or more. Most of the time they got into debt due to overspending and leading an extravagant lifestyle.
Versus me. All my life I’ve been a low-income earner. I never cracked $50,000/year. My debt was because of medical or dental bills, vet bills, car repairs, unemployment, and cash advances to pay the rent when I didn’t have enough money in the bank.
My debt came from using my credit cards to survive. I know there are many other single women out there just like me. Low income and struggling with debt. That’s why I wrote these articles to help others just like me get rid of debt:
Single Women and Debt Reduction
Taking Control of Debt on a Low Income
Don’t Let Carryover Debt from 2024 Ruin Your New Year: Take Action Now
Debt Anxiety
Yup, debt anxiety is a real thing and it can cause health issues.
There was a news story in British Columbia about debt anxiety:
British Columbians’ debt anxiety mounting amid inflation, interest rate hikes.
- 3 in 5 British Columbians are worried they won’t be able to pay their debts due to rising interest rates.
- 2 in 5 British Columbians are $200 or less away from insolvency.
- 15% are using credit cards to pay bills.
- Over a third of the respondents said they have between $25,000 and $50,000 in debt.
- The majority say credit card debt is the main source of financial problems.
- Over a quarter say their debt is due to financial mismanagement.
- 20% are using credit cards just to cover basic living expenses.
- 10% are using credit due to health or injuries.
- 8% are using credit due to relationship breakdowns.
- Most don’t have emergency funds.
- Many spend over 50% of their income on housing.
And here’s the reality kicker. Are the residents of British Columbia all that much different from the rest of the people in Canada and the United States? Financial challenges are everywhere, but us low income earners are in the most dire straits. We don’t have what it takes to find a higher paying job. Our income is staying the same but our basic needs are becoming more expensive.
ChatGPT helps pay off debt
OK, I got a little sidetracked there with some paying off debt links and debt anxiety, so let’s get back to ChatGPT.
I recently read an article about a woman who says ChatGPT helped her pay off over $11k in debt.
She had $23,000 in credit card debt and after one month had paid off $11,000.
Whoa Nellie! Is ChatGPT that good?
Some of ChatGPT’s suggestions were to look for money she might have forgotten about.
Right away she finds $100 on Venmo. I don’t use that app myself but I think it’s used mostly from transferring money from one person to another. Say I go out for dinner with you and you’re trying to break a $100 bill and get change. You pay with cash and then I e-transfer you the money through Venmo for my share of the meal.
So here’s the biggie. Her husband (yeah, I know unrelatable – another debt story about a couple and dual incomes) mentions a brokerage account. Didn’t we have one? Oh yeah. They look and lo and behold – there’s $10,000 sitting there.
OK. Now how in the hell does someone forget about $10,000? Or forget they have a brokerage account?
They used that money and paid off nearly half the credit card debt.
Wrapping it up – that whole article based on the title was misleading. Clickbait! You’d think Yahoo would do better.
Bad example
Like I said, I’ve read too many articles about people paying off debt who are not like me.
And if you’re like me, a low-income woman, you can’t relate to these people either.
There’s no way I’m ever going to lose track of $10,000. No way I’ll even lose track of $50!
I’m never gonna “find” a significant amount of money that I forgot about. I might find $20 that I stuck in a pocket when I went for a walk and forgot to put back in my wallet. And why would I stick a $20 in my pocket? Just in case I get hungry or thirsty when I’m walking. Or see the ever-elusive ice cream truck!
No way is the money fairy going to be smiling on me and drop a crap load of forgotten money in my lap.
Does ChatGPT work for debt advice?
I think ChatGPT might be a good tool if you’re looking to pay off your debt. Go and start up conversation to get some ideas.
I’ve said it many times around here. You try different methods to pay off your debt and stick with what works for you.
I gave it a try and asked ChatGPT how I can tackle paying off $25,000 in debt. I just got the standard answers about writing all the debt down, choosing the debt snowball or debt avalanche, creating a budget, and avoiding new debt.
Then I asked “what’s one thing I can do today?” And here’s the answer:
Great — let’s get you moving today with one powerful, simple step:
✅ Today’s Action: Make a “Debt Snapshot”
Sit down for 30–60 minutes and write out every debt you owe on one page (paper, spreadsheet, or app). For each one, list:
- Name of the lender
- Total balance
- Minimum monthly payment
- Interest rate
- Due date
Why This Matters:
You can’t fix what you can’t see. This list becomes your roadmap to getting out of debt. Many people avoid this step because it feels scary — but knowledge is power, and it will actually help you feel more in control.
Bonus Step (Optional but Empowering):
Pick the smallest debt or the one with the highest interest and pay a little extra toward it today — even $10 or $25. That act gets the momentum going.
Once you have the snapshot, come back and I’ll help you pick the best next step based on what you’re facing. Want a template or example to get started?
(Me again) Hmmm…. I didn’t get any quirky answers like create debt art out of a watermelon and auction it off.
Debt snowball or debt avalanche?
A lot of people use either the debt snowball or debt avalanche method to pay off debt.
Both of them have you list off all your debts. The snowball has you list them in order of how much you owe – lowest amount to highest. The avalanche has you list them in the order of how much interest you pay, from the highest to lowest interest rate.
I used the snowball method. Once you pay off the smallest debt, you’ve knocked it out and that gives you motivation to keep going and tackle the next one.
The avalanche could take a little longer to see results and get the momentum going. Out of all your debts, say your highest interest is 20% and you owe $10,000. That’s still going to take you a long time to pay it. Maybe years. You don’t see any headway and you get discouraged and quit and go back to your old habits.
Trying to pay off debt feels like a losing battle
I’ve been there. I know what it likes struggling to pay off debt. And I’ve come out the other side. I’ve been debt-free for a few years now. I rarely use my credit card because I’m low income and I can’t afford to buy stuff.
But I am a nomad and I do have to use credit cards for travel expenses. I pay the credit cards off in full each month because I now have the savings in my bank account to do so. And I managed to sock away these savings by using the money that I’d previously used every month paying off my credit card debt.
It’s hard to find extra money to throw at debt when we’re already living a bare bones existence. Where else can we cut back?
Our options are to make more money and cut back on expenses.
Finding a second job to earn more money is often easier said than done. Deliver pizza. Become a Door Dash or Uber Eats driver and deliver food.
Can you downgrade your phone plan?
I pay $150 a year for my phone.
Yup you read that right.
$150. A. Year.
The biggest part of that is about $100/year for data, an eSim that is good in about 135 countries. Just about everywhere I travel to, when that plane touches down, I can make phone calls, send texts, and use the Internet. And my secret isn’t just for full time travellers. It works just the same if you’re not leaving the country, maybe even be a few bucks cheaper if the eSim is just a regional plan. Click here for my article about how to avoid big phone bills.
Do you need cable? Or can you cut it off? At least while you’re in the paying off debt phase and then sign up again when you’re in a better financial situation. Watch your TV shows for free the next day on your TV station’s website. You can also watch older TV shows and movies on Pluto TV and YouTube. Free!
Ask ChatGPT
So, should you ask ChatGPT: what’s the best way to tackle debt?
Absolutely. I think ChatGPT should be one of the tools you use to help get advice on paying off your debt.
But it shouldn’t be your main source of information.
Perhaps asking ChatGPT for a monthly list of goals to put in action for debt reduction might be useful. Take what works and leave behind what doesn’t apply to your situation. I think most of us already know we haven’t forgotten about any sources of cash!
What do you think? Will you give ChatGPT a try and see if it works to help you get rid of debt? Or have you already tried it and didn’t find the advice applicable to your situation?
Published by Cheryl @ The Lifestyle Digs on August 1, 2025.
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