Let’s face it: debt can feel like that uninvited guest who overstays their welcome. It looms over you, whispers in your ear during sleepless nights, and won’t leave, no matter how much you hint it’s time to go.
I’ve been there, drowning in $32,972 of bad debt as a single mom, wondering if I’d ever see the light at the end of the financial tunnel. Spoiler alert: I did. And I’m here to tell you that with some hard work, creativity, and a dash of sacrifice, you can too.
So grab a cup of tea (or that Starbucks I missed for nearly two years), and let’s dive into exactly how I paid off my debt in less than 24 months, all while raising my son, holding down a full-time job, and navigating life with the grace of a clumsy penguin.
The first step to tackling debt is knowing what you’re up against. I had to get honest with myself and face the terrifying truth of just how much I owed.
I grabbed a notebook (or you can use Excel if you’re fancy) and wrote down:
1. Every required expense.
2. All debts, balances, and interest rates.
Anything over 5% interest went into the “bad debt” column—you know, the kind that makes your bank account cry. Seeing it all laid out was overwhelming, but it gave me clarity. How can you tackle what you owe if you don’t know what you owe?
Next, I had to make some tough love decisions. I went full-on Marie Kondo with my finances: if it didn’t spark joy (or necessity), it had to go.
Here’s what I cut:
• Subscriptions: Bye Netflix and cable; hello free library movies.
• Groceries: I switched stores to one that didn’t make me feel like I was shopping for diamonds instead of food.
• Dining out: Adios takeout; hello meal prep.
• Skincare: Drugstore brands became my BFF.
• Health insurance: I adjusted my plan to save money (without sacrificing what I needed).
• Internet: Slowed it down just a notch—I wasn’t streaming anyway.
Did I miss my fancy lattes and overpriced beauty products? Absolutely. Did I miss the stress of being broke? Not one bit.
Cutting expenses was only part of the equation. To really make progress, I needed more income, so I got creative.
Here’s how I made extra money:
• Remote Job with Appen: I signed up to rate ads on social media, bringing in an extra $1,200/month. It was flexible, remote, and perfect for my schedule.
• Employer Wellness App: My job offered a fitness incentive program. I earned $200 every quarter just for moving my body.
• Dividends: I cashed out an easy $480/year instead of reinvesting my quarterly dividends.
These small income streams added up quickly, and every dollar went straight to paying off my debt. You can get ideas for side gigs and part-time income on Pinterest, www.sidehustlenation.com, or The Side Hustle Show Podcast.
Once my expenses were trimmed and extra income flowed, it was time to get laser-focused.
Here’s the plan I followed:
1. Target the highest interest debt first. This is called the avalanche method. (Who doesn’t want to imagine burying their debt in snow?)
2. Throw every spare penny at that debt. I didn’t just pay the minimum; I wasted all my extra income.
3. Track progress weekly. I used Excel for the big picture and my iPhone Notes app for daily spending.
Paying off one credit card at a time felt like a game—and every win motivated me to keep going.
Here’s the unsexy truth: consistency is the key to paying off debt. For 23 months, I reviewed every dollar I spent.
Sunday mornings became sacred for financial check-ins. I’d add up all my spending, adjust my budget, and make sure every dollar had a purpose. Was it tedious? Sure, but it worked.
By month 23, I had officially paid off $32,972 of debt. 🎉
And then, something unexpected happened: I received a case settlement. I could have splurged (trust me, I was tempted), but instead, I:
• Paid off my son’s car loan.
• Gifted him enough to clear his bad debt.
• Opened a Roth IRA and maxed out my yearly contribution.
• Stashed the rest in a high-yield savings account.
It felt amazing to use that money wisely, knowing I was building a stable future for myself and my son.
Fast forward to today, and here’s where I stand:
• Debt: I still have a small auto loan and a Parent PLUS student loan, both under 5%.
• Savings: I have a fully funded emergency fund in a high-yield account with Capital One and have saved 12 months of expenses.
• Investments: I’m maxing out my Roth IRA annually and contributing more to my 401(k).
• Goals: I’m saving for a short-term vacation rental property in South Carolina in another high-yield savings account, which I will purchase within two years.
Oh, and yes—I’ve brought Starbucks back into my life. (Moderation is key, folks.)
1. Sacrifice is Temporary: For 23 months, I lived on a super-tight budget. It wasn’t fun, but it was worth it.
2. Consistency is Everything: Small, consistent actions produce significant results.
3. Invest in Your Future: Once debt is under control, start building wealth.
If you’re ready to tackle your debt, here’s my advice:
1. Get Clear: Write down all your expenses and debts.
2. Cut Back: Look for any expense you can live without.
3. Find Extra Income: Explore remote work, side gigs, or selling unused items.
4. Make a Plan: Choose a debt payoff method (avalanche or snowball) and stick to it.
5. Track Progress: Review your budget weekly to stay on track.
6. Celebrate Wins: Reward yourself for milestones to stay motivated.
Remember, your financial situation doesn’t define you. You can change your story with dedication, focus, and creativity.
Paying off $32K in debt wasn’t easy, but it was one of the best decisions I’ve ever made. I now live with less stress, financial stability, and a clear path to my goals.
If I can do it as a single mom, you can too. Start small, stay consistent, and keep your eyes on the prize.
And when you’re sipping that well-deserved latte after paying off your debt, think of me—cheering you on every step of the way.
Here’s to your financial freedom!
Let’s Chat!
What’s your most significant financial goal? Please comment below—I’d love to hear from you and support your journey!
And if this story inspired you, share it on social media or with a friend who might need a little motivation to tackle their debt. Comment with queations or if you too want to pay off significant debt quickly.
With love, humor, and a whole lot of budgeting magic,
Jax
