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Semantic Logger
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We've just switch to Semantic Logger (https://github.com/reidmorrison/semantic_logger) at work for logging in a context-sensitive way. All the logs are going back into the local database via a custom appender, which isn't ideal but at least puts all the data in an easy-to-query space.
Considering you would rather be without third-party, I would suggest Sentry which is open-source and allows for a self-hosted solution https://develop.sentry.dev/self-hosted/. It works similar to Honeybadger, but you can control everything yourself.
There is a drop-in engine supporting writing to database instead: https://github.com/richpeck/exception_handler But I have never used it personally and I don't know if it's compatible with Rails 7 (should be though).