How did you deal with debt … got any tips?

Seeking Advice
1

Hi all, the title says most of it. I’m curious:

  • Are you currently in debt or have you paid it off?
  • What helped you get out of it?
  • What motivated you to start working on it?
  • How did you stay focused on paying it off?
  • What steps worked best for you?
  • What are you doing now to avoid going back into debt?

Anything else you’d like to share would be great. Thanks in advance!

2

I’m still in debt—about $7,000 left out of the $20,000 I had five months ago.

What keeps me going is imagining how much more money I’ll have once I stop making debt payments. I’m also part of the FIRE community and dream of saving enough to retire early. Thinking about a future without a 9-5 grind is what motivates me most.

3

  • Are you in debt now or out of debt?
    Still in debt, but I’ve gone from $178k in student loans in 2013 to $37k now.

  • What tools do you use?
    I used Unbury.me to compare payment strategies like Snowball vs. Avalanche. I started with Avalanche but switched to Snowball because it felt more motivating. Mint also helped me keep track of my spending.

  • What motivated you to get started?
    I wanted more freedom—being able to move, travel, or buy a house without feeling stuck by debt.

  • What kept you motivated?
    Seeing progress with the Snowball method and knowing I was freeing up more money for other things.

  • What steps did you take?
    I doubled my income by changing jobs, which really sped things up. I also paid cash for everything else and stopped using credit cards entirely.

  • What are you doing now to stay out of debt?
    I only finance things like a house. For everything else, if I can’t pay cash, I skip it. I’m also open with friends about wanting to save money, which helps avoid expensive outings.

4

I paid off $14k of debt in under a year. Here’s how:

  1. I got a second job that paid $50 extra a week, which went straight to my debt.
  2. I created a strict budget and started living as cheaply as possible—think $20/week on food. I mostly ate rice and chicken thighs.
  3. I threw any extra money (bonuses, tax refunds, eBay sales) at my debt.

The sacrifices were tough, but it was worth it to see the debt go down!

5

I’m working on paying off about $25k in debt from bad financial choices. I’m using YNAB and have already paid off $8k. My goal is to be debt-free by next April.

I’ve put myself on a no-spend rule for now and cut back on extras like personal training sessions and unnecessary credit card spending. It’s tough, but I’m staying motivated by focusing on my goal of buying property in the near future.

6

We listed all our debts, ranked them from smallest to largest, and started paying them off one by one using the Snowball method. We also created a budget to see where our money was going and cut back on unnecessary spending.

Before starting, we saved $1,000 for emergencies, which helped us avoid new debt when unexpected things came up. Two years later, we’ve paid off $40,528 and only have $6,447 left on a student loan. We should be debt-free in four months!

7

@Marlow
Wow, that’s incredible! You’re so close. Keep going!

8

I’m tackling credit card and student loan debt. For me, the first step was overcoming the shame I felt about my financial situation. I calculated how much I owed, then opened up to a financially savvy friend who helped me make a budget and plan.

Once I had a clear strategy, I started feeling more in control. I also transferred balances to lower-interest cards and became obsessive about tracking my accounts. The mental shift has been a game-changer for me.

9

I transferred $20k of debt to a 0% APR card in February 2020. I’ve paid off $13k so far, leaving $7k to go. The pandemic helped because I picked up extra work-from-home gigs, and the stimulus check also went toward my debt. I plan to have it all paid off by September.

10

@Miko
What card did you use?

11

Delaney said:
@Miko
What card did you use?

Bank of America Americard with no balance transfer fee.

12

Miko said:

Delaney said:
@Miko
What card did you use?

Bank of America Americard with no balance transfer fee.

Thanks! I have that card but can’t get approved for anything new right now. Any tips for improving my chances?

13

@Delaney
What’s holding you back? I want to apply for a balance transfer card too, but I’m worried my 690 credit score won’t cut it.

14

Gale said:
@Delaney
What’s holding you back? I want to apply for a balance transfer card too, but I’m worried my 690 credit score won’t cut it.

I have 10 credit cards already with a total limit of $40k, but my credit history is short—just five years since I got my first card. That’s probably the issue.

15

I’m out of debt now. Here’s what worked for me:

  • Strict budgeting with cash only. I gave myself just $5/week for fun.
  • Learning skills to save money, like cooking and gardening.
  • Moving off-grid to lower my living costs and taxes.

The freedom that comes with being debt-free was my biggest motivation.

16

No debt except for the house. My partner and I paid off $31,500 in 13 months using Dave Ramsey’s baby steps. It was tough at first, but now we’ve got six months’ worth of expenses saved. Wouldn’t change a thing—except starting sooner!

17

My husband and I paid off our house and became 100% debt-free earlier this year. Here’s what helped:

  • We followed Dave Ramsey’s plan and used a paper envelope system for spending. Physically handing over cash made us think twice about purchases.
  • We created a visual chart and colored in a block for every $5k paid off. It was a great motivator!
  • We live well below our means even now, which lets us save and invest more.