From $67,000 in Debt to Complete Freedom in 23 Months

On January 1, 2022, I couldn't sleep. Not from New Year's excitement, but from the crushing weight of $67,000 in debt spread across credit cards, student loans, a car loan, and medical bills. My minimum payments were $1,847 per month. I was making $68,000 per year and drowning.

On November 29, 2023, I made my final payment. 23 months. $67,000 gone. Complete freedom.

This isn't a story about extreme frugality or eating rice and beans for two years. It's about strategic planning, calculated sacrifices, and discovering that paying off debt can actually be addicting once you build momentum.

Use our debt payoff calculator to create your own debt freedom plan.

The Debt That Nearly Broke Me

The Complete Disaster (January 2022)

Credit Cards: $18,432

Chase Sapphire: $7,234 at 23.99% APR
Capital One: $4,821 at 26.99% APR
Discover: $3,123 at 24.99% APR
Store cards: $3,254 at 28.99% APR

Student Loans: $31,450

Federal: $22,000 at 5.8%
Private: $9,450 at 8.2%

Car Loan: $14,230

2018 Honda Accord at 6.9%
48 months remaining

Medical Debt: $2,888

Emergency room visit
Collections threatening

Total: $67,000 Minimum payments: $1,847/month Interest per month: $897

I was paying almost $900 monthly just to stand still.

The Wake-Up Moment

January 15, 2022. Discover card declined at grocery store. In front of everyone. For $47 worth of food.

I had hit the limit on my last available credit card. No safety net. No options. Just debt.

That night, I did the math:

Continue minimum payments: 12 years to pay off
Total interest paid: $41,000
Total cost of $67,000 debt: $108,000

I realized I was trading my entire 30s to banks. That's when everything changed.

The Strategy: Modified Avalanche

Why Not Dave Ramsey's Snowball?

Everyone recommended the debt snowball (smallest balance first). I ran the numbers:

Snowball Method:

Time to payoff: 28 months
Total interest: $14,200

Avalanche Method (Highest rate first):

Time to payoff: 25 months
Total interest: $11,400

My Hybrid Method:

Knocked out two small store cards first (psychological wins)
Then strict avalanche by interest rate
Time to payoff: 23 months
Total interest: $10,823

Saved $3,377 and 5 months by mostly following math, not just emotion.

Month 1-3: Building the Foundation

The Complete Budget Overhaul

Old Budget (Living in denial):

Never tracked spending
"Roughly" knew expenses
Surprised by bills monthly
Always broke by the 20th

New Budget (Every dollar assigned):

Income (After tax): $4,200
Fixed Expenses:
- Rent: $1,400
- Utilities: $150
- Insurance: $180
- Phone: $45
- Internet: $60
Total Fixed: $1,835

Debt Minimums: $1,847
Remaining: $518

Food: $250
Gas: $100
Everything else: $0
Extra to debt: $168

That's right. Zero entertainment. Zero clothing. Zero anything unnecessary.

The Side Hustle Sprint

Knew I couldn't cut my way to freedom. Had to earn more.

Month 1 Side Income:

Uber/Lyft: $342 (Friday/Saturday nights)
Facebook Marketplace flips: $128
Plasma donation: $280
Freelance writing: $0 (building portfolio)
Total: $750

Every penny went to debt.

The First Victory

March 2022: Paid off JCPenney card ($432 balance)

It was tiny, but the psychological impact was massive. One account closed. Forever.

Month 4-6: Finding the Rhythm

Income Explosion

Breakthrough: Landed first freelance client at $50/article. Wrote 20 articles that month.

Month 6 Income:

Day job: $4,200
Uber/Lyft: $623
Freelance writing: $1,000
Marketplace flips: $234
Total: $6,057

For the first time, I had real ammunition against debt.

The Debt Avalanche in Action

Payoff Order by APR:

~~JCPenney: 28.99%~~ ✓ Paid Month 3
~~Target Card: 28.99%~~ ✓ Paid Month 4
Capital One: 26.99% ← Current target
Discover: 24.99%
Chase: 23.99%
Private student loan: 8.2%
Car loan: 6.9%
Federal student loans: 5.8%

The Momentum Shift

June 2022: Paid off Capital One ($4,821)

Suddenly had $150/month extra from eliminated minimum payment. Threw it all at Discover. The avalanche was building speed.

Month 7-12: The Obsession Phase

Living Like No One Else

My life became weird by normal standards:

Daily Routine:

5 AM: Wake up, freelance write
7 AM: Breakfast (eggs and oatmeal, every day)
8 AM - 5 PM: Day job
5:30 PM: Gym (kept $20 membership for sanity)
6:30 PM: Dinner (meal prepped Sunday)
7-10 PM: Uber or writing
10 PM: Track spending, check debt balances
11 PM: Sleep

Weekends:

Saturday 6 AM - 2 PM: Uber/Lyft
Saturday afternoon: Grocery shop, meal prep
Sunday: Marketplace flips, writing, planning

I was working 70-80 hours per week. But I could see the finish line.

The Sacrifice List

What I Gave Up:

Restaurants (saved $400/month)
New clothes (wore same 10 outfits)
Netflix/subscriptions (saved $87/month)
Dating (couldn't afford it)
Vacations (skipped friend's wedding)
Hobbies (everything free or nothing)

What I Kept:

Gym membership ($20)
Spotify ($10)
Sunday coffee shop visit ($5)
Monthly dinner with family

You need some small pleasures or you'll crack.

Major Milestone

December 2022: All credit cards paid off. $18,432 eliminated.

No more 24%+ interest rates. I actually cried making that last payment.

Month 13-18: The Hard Middle

Debt Fatigue Is Real

Month 14 was my lowest point. I'd been grinding for over a year. Still had $48,000+ to go.

The Temptations:

Friends posting vacation photos
Black Friday sales everywhere
Coworkers buying new cars
Family asking "when will you be normal?"

What Kept Me Going:

Debt thermometer on wall (colored in progress)
Monthly interest saved calculations
Reading debt-free success stories
One splurge meal monthly (progress reward)

The Raise That Changed Everything

March 2023: Got promoted. Salary went from $68,000 to $78,000.

Old me: Would have lifestyle inflated Debt-focused me: Kept living on $68,000

Extra $625/month after taxes straight to debt.

The Car Loan Debate

Financially, should have kept the 6.9% car loan until the end. But I hated that payment.

July 2023: Sold the Accord for $19,000

Loan balance: $11,200
Profit: $7,800
Bought 2010 Civic cash: $6,000
Extra to debt: $1,800

Driving a older car temporarily? Worth the freedom.

Month 19-23: The Final Sprint

Student Loan Strategy

The Decision: Pay off private loans first (8.2%), then federal (5.8%)

Federal loans have more protections, so I kept them as last priority.

September 2023: Private loans gone ($9,450) October 2023: Halfway through federal loans

The Last $10,000

The final $10,000 felt both endless and flew by.

Accelerators:

Work bonus: $3,000 (after tax)
Tax refund: $2,100
Sold everything unnecessary
Worked every holiday (double pay)

November 29, 2023: Final payment of $1,247.83

Student loans gone. Everything gone. Debt-free.

The Numbers That Matter

Total Paid: $67,000 in 23 Months

Average monthly payment: $2,913

Minimum payments: $1,847
Extra payments: $1,066 average

Income During Journey:

Day job (after tax): $96,600
Side hustles: $28,400
Bonuses/refunds: $5,100
Asset sales: $3,900
Total: $134,000 in 23 months

Where It All Went:

Debt payments: $67,000
Living expenses: $42,000
Interest paid: $10,823
Taxes on side income: $8,200
Emergency fund: $3,000
Margin of error: $2,977

Side Hustle Breakdown

Total Side Income: $28,400

Uber/Lyft: $11,234

892 hours total
$12.59/hour after gas
Worth it for flexibility

Freelance Writing: $13,200

Started at $50/article
Ended at $200/article
142 articles total

Marketplace Flips: $2,466

Best flip: Bought bike for $50, sold for $300
Average profit per flip: $47

Plasma Donation: $1,500

First 8 donations paid most
Not sustainable long-term

The Psychological Journey

The Stages of Debt Payoff

Stage 1: Panic (Month 1-2)

Overwhelming fear
Analysis paralysis
Tempted to ignore it

Stage 2: Anger (Month 3-4)

Mad at past self
Resentful of restrictions
Motivated by rage

Stage 3: Momentum (Month 5-12)

Seeing real progress
Addicted to payments
Competitive with self

Stage 4: Fatigue (Month 13-16)

Exhausted from grind
Questioning everything
Highest quit risk

Stage 5: Sprint (Month 17-23)

Can taste freedom
Nothing can stop you
Obsessed with finish

Relationship Costs

Lost two relationships during this journey.

Relationship 1: Ended month 4

She wanted normal dates
I could only afford free activities
"You care more about debt than us"

Relationship 2: Ended month 15

Different financial values
She had $45K in debt, wasn't concerned
I couldn't watch someone ignore the problem

The right person will understand the journey. These weren't the right people.

Social Isolation Reality

What I Missed:

Bachelor party in Vegas
Multiple birthday dinners
Concert tickets with friends
Cousin's destination wedding
Every "let's grab drinks" invite

The Truth: Some friends disappeared. The real ones understood and stuck around.

Strategies That Accelerated Payoff

The Power of Micro-Payments

Paid something toward debt EVERY DAY.

Why Daily:

Reduced interest charges
Maintained momentum
Prevented lifestyle inflation
Made it a habit

Even if just $5, money hit debt daily.

The Cash Envelope Comeback

Went old school for variable expenses:

Weekly Cash Envelopes:

Groceries: $60
Gas: $25
Miscellaneous: $15

When envelope empty, that category was done. No exceptions.

The Debt Avalanche Spreadsheet

Created a spreadsheet showing:

Every payment's impact
Interest saved per payment
Days cut off total timeline
Running total eliminated

Seeing "$47 payment saved $127 in interest" motivated every extra payment.

The Side Hustle Optimization

Learned to stack activities:

Uber during peak hours only ($25+/hour)
Write articles between rides
Listen to audiobooks while driving
Flip items near Uber pickups

Maximized every hour worked.

Mistakes I Made

Mistake #1: No Emergency Fund First

Paid $1,200 to fix car with credit card in month 8. Had to pay it off again. Should have had $1,000 emergency fund first.

Mistake #2: Too Extreme Initially

First month, budgeted $150 for food. Cracked by day 20, binged on restaurant food, spent $400 total. Sustainable is better than perfect.

Mistake #3: Didn't Negotiate Rates

Could have called credit cards to lower APR. Pride stopped me. Probably cost $1,000+ in extra interest.

Mistake #4: Ignored Taxes on Side Income

Didn't save for taxes on freelance income. Owed $3,200 April 2023. Had to pause debt payoff for a month.

Life After Debt

The First Month Free (December 2023)

What I Did:

Stared at $0 balances daily
Took first real vacation in 2 years (paid cash)
Increased 401k to 15%
Started investing $1,000/month
Bought clothes that fit

What I Didn't Do:

Finance anything
Get new credit cards
Lifestyle inflate dramatically
Forget the journey

The New Monthly Budget

Income: $4,200 (day job) No debt payments: $0

New Allocation:

Rent: $1,400
401k (15%): $630
Roth IRA: $500
Brokerage investing: $500
Emergency fund: $300
Living expenses: $600
Fun money: $270

From $0 to invest to $1,430/month. That's the power of debt freedom.

Net Worth Transformation

January 2022:

Assets: $2,000
Debts: -$67,000
Net Worth: -$65,000

January 2024:

Assets: $11,000
Debts: $0
Net Worth: +$11,000

76,000 swing in 24 months.

Your Debt-Free Blueprint

Step 1: The Reality Check (Week 1)

List Everything:

Every debt (balance, rate, minimum)
All income sources
Every expense
Calculate payoff timeline at minimums

Face the full truth. No hiding.

Step 2: Choose Your Method (Week 2)

Snowball: Smallest balance first (psychological wins) Avalanche: Highest rate first (mathematical optimal) Hybrid: 1-2 small wins, then avalanche

Pick what you'll actually stick to.

Step 3: Find Extra Money (Month 1)

Cut Expenses:

Meal prep (save $300+)
Cancel subscriptions (save $100+)
Negotiate bills (save $50+)

Increase Income:

Ask for raise
Start side hustle
Sell unused items
Work overtime

Need minimum $500 extra monthly to see real progress.

Step 4: Build Momentum (Month 2-6)

The Crucial Period:

Pay something extra daily
Track progress visually
Celebrate small wins
Find accountability partner
Don't quit when hard

Most quit here. Don't be most people.

Step 5: Sprint to Finish (Month 7+)

When You See The Light:

Increase intensity
Throw every bonus at debt
Sell things you thought you needed
Work every extra shift
Obsess over the finish

The Tools That Helped

Apps and Spreadsheets

Mint (Free): Tracked all spending YNAB ($14/month): Worth every penny for budgeting Debt Payoff Planner (Free): Visualized progress Personal Spreadsheet: Tracked everything manually too

Books That Changed My Mindset

"Your Money or Your Life" - Understood true cost of debt
"The Total Money Makeover" - Motivation and community
"I Will Teach You To Be Rich" - Post-debt planning

Communities

r/DaveRamsey: Daily motivation Facebook Debt-Free Groups: Success stories Local FPU Group: In-person accountability

You need people who understand the journey.

The Wisdom Gained

What Debt Really Costs

It's not just interest. It's:

Sleep lost to worry
Opportunities missed
Relationships strained
Dreams deferred
Health affected by stress

The true cost is immeasurable.

What Freedom Feels Like

Debt-Free Means:

Every paycheck is yours
Can take calculated risks
Sleep without worry
Help others in need
Build actual wealth

It's not about the money. It's about options.

Would I Do It Again?

Every. Single. Day.

Those 23 months of sacrifice bought me the rest of my life. I'm 29 years old and completely free. By 40, I'll be wealthy. By 50, retired if I choose.

That's worth missing some parties and driving an older car.

Your Turn

You might have $10,000 in debt. Or $100,000. Doesn't matter. The process is the same:

Decide you're done being in debt
Make a realistic plan
Increase income, decrease expenses
Pay something extra every day
Don't quit when it gets hard
Sprint when you see the finish

In 12, 24, or 36 months, you could be writing your own debt-free story.

The best time to start was when you got into debt. The second best time is today.

What will you pay off first?

Ready to create your debt-free plan? Use our Debt Payoff Calculator to see exactly when you'll be free. For budgeting strategies, check our Budget Calculator. Remember: Every empire starts with eliminating what holds you back.

Debt-Free Journey 2025: How I Paid Off $67,000 in 23 Months