How I Paid Off Thousands of Dollars of Debt Quickly

If you're feeling overwhelmed by debt, you're not alone. I was in the exact same position—struggling with thousands of dollars in debt, unsure of how to get out, and stressed about how I would ever be able to live debt-free. Here's how I did it and how you can too.

The Turning Point

I was at a breaking point when I realized how much debt I had accumulated. Between credit card balances, student loans, and a personal loan, the numbers were staggering. I had no clear plan, no real understanding of how to dig myself out, and the weight of it all felt suffocating. But one thing became clear: I had to take responsibility and start making changes—fast.

Moving In with Relatives

One of the first steps I took was to drastically cut down on living expenses. I made the difficult decision to move in with my relatives. This decision wasn’t easy, but it was a game-changer. By paying low rent, I was able to redirect the money I would have spent on housing toward paying off debt. This step alone saved me hundreds each month.

Getting a New Job (and Then Two Jobs)

Next, I focused on increasing my income. I found a new job that offered a higher salary than my previous one, but I didn’t stop there. I kept working at my other job part time, working evenings and weekends online from home. It was exhausting at times, but the extra income went straight into paying down debt. Having two jobs also taught me discipline and time management, as I had to balance my personal life with my professional responsibilities.

Working From Home to Save on Gas and Eating Out

I also looked for ways to cut costs on the things I used to take for granted. When I had the chance to start working from home, I took it. Not only did I save money on gas, but I also avoided the temptation to eat out for lunch every day. Cooking at home became a way of life, and meal prepping on Sundays helped me stay on track. 

Creating a Budget and Tracking Every Dollar

One of the most impactful things I did was create a budget. I had never really thought about budgeting before—I'd always just spent as I went. But once I started tracking every dollar, I saw where my money was going, and it was eye-opening. The goal was simple: pay off as much debt as possible while still covering my essentials. Some people think creating a budget has to be complex, but it doesn't. It could be as simple listing out monthly income and expenses on a piece of paper. I used an Excel spreadsheet. I keep it very simple. There are also many budgeting apps online that are free. If you prefer to do a manual budget, here's a budget planner you might like.

Using Coupons, Discounts, and Cash Back Rewards

I became a master of using coupons, shopping discounts, and leveraging cash-back rewards. Whether it was clipping coupons for groceries, waiting for sales to buy clothes, or using cash-back apps for purchases, I always found ways to save a little here and there. It might have seemed like small amounts at the time, but those little savings added up quickly. Try Rakuten and Honey to earn cash back while shopping online!

Cooking at Home and Meal Prepping

Eating out was one of my biggest weaknesses before I started my debt-free journey. I loved the convenience, but it was also draining my bank account. I decided to take control of my meals. Cooking at home became my new normal. I’d spend a few hours on Sundays meal prepping for the week, and I’d avoid the temptation to grab take-out on busy days. Not only did this save money, but it also helped me maintain a healthier lifestyle. Here are some meal prep containers and Matt Kearn's book Meal Prep on a Budget.

Practicing Frugal Living

Frugality became my mindset. I learned how to be content with less. I shopped at discount clothing stores and thrift shops, finding clothes that were just as good as what I would have bought at full price. I stopped splurging on things I didn’t need, like the latest tech gadgets or fancy coffees. It wasn’t always easy, but I constantly reminded myself that every dollar saved was a step closer to being debt-free.

Combining Finances with My Husband

In addition to cutting costs and increasing income, I combined finances with my husband. While this step may not be for everyone, it was a smart move for us. By pooling our income, we were able to tackle our shared debt faster and save even more on living expenses. We also held each other accountable when it came to sticking to our budget and staying focused on our goals.

Reading Books and Learning About Personal Finance

I knew that if I wanted to get serious about paying off debt, I had to educate myself. I read countless books on personal finance, debt management, and frugal living. Some of my favorites were The Total Money Makeover by Dave Ramsey, Rich Dad, Poor Dad by Robert T. Kiyosaki, and The Psychology of Money by Morgan Housel. I listened to podcasts, read blogs, and learned everything I could about how money works and how to make it work for me.

Starting to Invest in Dividend-Paying ETFs

As I paid down more and more of my debt, I began thinking about the future. I wanted to build wealth, not just live paycheck to paycheck. That’s when I started investing. I chose to invest in dividend-paying ETFs (Exchange-Traded Funds) because they offered a simple, low-cost way to build wealth over time while generating passive income. Although it wasn’t a quick fix, starting early with small, consistent investments helped set the stage for my financial future.

The Results: Debt-Free and Financially Empowered

After months of hard work, sacrifices, and learning, I finally paid off my debt. I was no longer weighed down by bills and the stress of living paycheck to paycheck. And even though I was initially focused solely on paying off debt, I had gained something even more valuable: financial confidence.

Paying off debt was just the beginning. By learning about personal finance, practicing frugality, and making strategic financial decisions, I set myself up for a future of financial stability and wealth-building.

Final Thoughts: You Can Do It, Too

The journey to paying off debt isn’t easy, but it is possible. By making a few sacrifices, working hard, and learning as much as you can about managing your money, you can take control of your finances and become debt-free.

So, if you’re facing mountains of debt, remember: small, consistent actions can lead to big changes. Start by looking at your expenses, increasing your income, and educating yourself. And most importantly, keep your eye on the prize—financial freedom.

With time, determination, and the right mindset, you’ll be on your way to paying off your debt. You’ve got this!