My debt-payoff journey with tips and strategies that made the biggest impact.

Debt can feel like a huge burden, and I know firsthand how stressful it can be. At the beginning of this year, I was determined to finally tackle my $5,000 debt head-on. I knew it wouldn’t be easy, but with a clear plan and some dedicated strategies, I managed to pay it off in just six months! I’m excited to share what worked for me in hopes that it might help you, too. Here’s a step-by-step look at my debt-payoff journey:

1. Set a Clear, Achievable Goal

The first thing I did was set a realistic goal for paying off my debt. I looked at my income, expenses, and other financial commitments to determine what I could consistently put toward my debt each month. My goal? To pay off $5,000 in six months, which meant allocating around $833 monthly. It felt like a stretch, but setting a specific goal gave me something concrete to work toward.

2. Created a Budget Focused on Extra Payments

I realized that my regular budget wasn’t leaving me with enough to make substantial payments, so I adjusted it. I categorized my spending into essentials (like rent, utilities, groceries) and non-essentials (eating out, entertainment, etc.) and then limited my non-essential spending. By redirecting that extra cash toward my debt, I found myself making bigger payments each month.

3. Prioritized the Snowball Method

I decided to use the snowball method, where I focused on paying off my smallest debts first. Knocking out those small debts gave me a sense of accomplishment and kept me motivated. After paying off one debt, I rolled over that payment to the next debt payment, building momentum and increasing the amount I could pay each month.

4. Picked Up a Side Hustle (or 2)

To help me reach my goal faster, I started a side hustle (this blog) and I took on freelance work (Uber Eats) that allowed me to earn a little extra each month, which I dedicated entirely to my debt payments. The extra cash from my side hustle helped me get closer to my goal faster than I would have with just my regular income. This made a HUGE difference in how much I was able to put towards debt payments.

My Uber schedule was simple: Friday, Saturday and Sunday nights I would get in the car and deliver food and/or groceries from 5pm-9pm. Working 12 hours a week, I was able to make $400-$500 extra every month. And i got to drive around and check out cool restaurants and places that I wouldn’t normally find on my own.

5. Made Payments Every Payday

Instead of waiting until the end of the month, I made a debt payment every time I got paid. This method helped me stay disciplined, reduced the amount of interest I was accumulating, and made each payment feel more manageable.

6. Used ‘No-Spend’ Challenges to Free Up Cash

I added a few no-spend days each month where I avoided spending on anything that wasn’t a necessity. These challenges forced me to get creative with meals, entertainment, and activities, freeing up extra cash that went straight toward my debt.

Yes, this might mean staying home more, but it was worth it to free up the extra cash that was going towards paying minimum payments. Now I can go out more and not have that debt looming over my head.

7. Automated Payments to Stay Consistent

To avoid any temptation of spending the money elsewhere, I automated my debt payments. I set it up so that a portion of my paycheck would go straight to my debt each time I got paid. This helped me stay consistent and stick to my goal without having to think about it too much.

This also helped to reduce my stress about the debt. I knew that it was getting paid off and I didn’t have to worry about missing a payment. This is where step #2 really came in handy, because making a goal and figuring out exactly how mch I could put towards the debt made me feel like I could do this.

8. Celebrated Small Wins

Paying off debt can feel daunting, so I made sure to celebrate each milestone. Every time I paid off a certain amount or cleared a specific debt, I took a moment to celebrate (in a budget-friendly way!). These small celebrations kept me motivated and reminded me of the progress I was making.

Instead of going out for a fancy desert and drinks, I would splurge on a sale bakery item at the store instead. And even better, most times it would last for more than one night!

9. Found Creative Ways to Reduce Monthly Bills

I looked at my regular bills and found areas to cut down on costs, such as canceling subscriptions I wasn’t using, switching to a more affordable phone plan, and reducing my energy consumption at home. These small changes freed up even more money to put toward my debt each month.

I have gotten myself down to 2 subscriptions this way… I currently have HBO Max which is free through my phone plan (have you checked yours?) and Amazon Prime Video.

TIP: If I really want to watch a show on another streaming service, I make sure that I have the time to binge watch it and then use a random e-mail address to sign up for the 2 week or 30 day free trial. BUT you have to remember to cancel the subscription before it ends so you don’t get charged! So set a reminder on your phone a few days before the free trial ends.

10. Stayed Motivated by Visualizing the End Goal

Staying motivated is key when paying off debt, so I kept a visual tracker to mark my progress. Watching the amount decrease each month felt rewarding and reminded me why I started. I focused on the freedom I’d feel once my debt was gone, which kept me going on days when it felt challenging.

You can make a simple bar chart in word or on Canva for free and print it out to hang on your wall so that you can see (and be motivated by) you progress every day.

The Results

After sticking to this plan for six months, I managed to pay off the entire $5,000! It took commitment, sacrifice, and a lot of planning, but the feeling of being debt-free was worth every effort. If you’re working toward paying off debt, I hope these tips help you find strategies that work for you. Remember, every little bit counts, and each step you take is progress!

Here’s to financial freedom! 💸