Debt can feel like an invisible weight, constantly hanging over your head. For years, we were buried under $98,000 in consumer debt, including student loans, credit cards, car loans, and even a financed sewer pipe. It felt overwhelming, and at times, like we would never escape. But we did. Our debt free journey was tough but transformative. In this post, I want to share how our family broke free from debt, and how it transformed not only our financial future but also our approach to life.
It wasn’t easy, but it was worth every single sacrifice.
The Beginning of Our Debt Free Journey
Like many young families, we started off with dreams of a bright future but little understanding of how to manage our finances. We had student loans from college, credit card debt, and personal loans that we thought would be easy to manage. But over time, things got out of control. A new car here, a vacation there, and little by little, our debt started to pile up. Before we knew it, we were looking at a combined total of $98,000 in consumer debt.
We were living in a cycle of borrowing—buying things on credit and putting off the inevitable reality of repaying what we owed. The stress was overwhelming. The constant juggling of bills, the monthly payments, the endless interest—it all added up. We were living paycheck to paycheck, and the debt felt like it was suffocating us.
The Wake-Up Call
One day, we realized that our debt was controlling our lives. We were spending so much energy just managing our payments that we weren’t enjoying life, weren’t saving for the future, and definitely weren’t building the kind of future we wanted for our family. Our kids were growing up, and we didn’t want them to feel the weight of financial stress.
We decided to make a change. We didn’t want our children to grow up with the same burden we had. We wanted them to understand the importance of living debt-free. We were determined to get out of debt and teach them the value of living within our means.
Our Plan: The Debt Snowball Method
We knew we couldn’t just wish our way out of debt—we needed a plan. After doing some research and learning about Dave Ramsey’s Debt Snowball Method, we decided this would be our strategy.
Here’s how it works:
- List your debts: Start by listing all of your debts, smallest to largest, regardless of interest rate.
- Pay off the smallest debt first: Focus all your energy on paying off the smallest debt first while making minimum payments on the rest.
- Roll over payments: Once the smallest debt is paid off, take the money you were paying on that debt and apply it to the next smallest debt.
- Repeat: As you pay off each debt, you gain momentum, and the payments keep rolling over, getting bigger and bigger, until you’re debt-free.
We listed out all our debts: credit cards, student loans, car loans, and even a financed sewer pipe. It was painful to see it all written down, but it was the first step in gaining control.
Involving the Kids: Ripping and Stomping to Celebrate Each Milestone
One of the most important aspects of our journey was involving our kids. We wanted them to understand that getting out of debt wasn’t just a financial goal—it was a family mission. Each time we paid off $1,000, we celebrated. But not with a new toy or a dinner out—we had a little ceremony that turned the whole thing into an exciting, memorable experience.
We would rip up a large index card (with $1,000 written on it) and stomp on it as a family. Our kids loved this. It was a way for them to visually and emotionally connect to the journey. Every time a debt was eliminated, the whole family would gather, rip up a card, and celebrate with loud declarations that we were never borrowing money again.
It was simple, but it was powerful. By the end of our final year of paying down debt, our kids were excited every time we hit another $1,000 milestone. They understood that each ripped-up card was a step toward freedom—a step toward building a future without the chains of debt. If you’re looking for ways to visually track your own debt payoff journey, check out my guide to charts and methods for tracking debt payoff—it helped us stay motivated and focused throughout the process!
The Sacrifices We Made On Our Debt Free Journey
While it wasn’t all fun and games, the sacrifices we made were essential to reaching our goal. Here’s a glimpse at some of the tough choices we made along the way:
- Cutting back on non-essential spending: We stopped eating out, stopped buying things we didn’t need, and focused on cutting costs wherever we could.
- Selling items we no longer needed: We sold furniture, electronics, and other items that were just collecting dust. The extra money went straight toward paying down our debt.
- Living frugally: We embraced a simpler lifestyle. We reduced our utility bills, canceled subscriptions we didn’t need, and took on DIY projects to save money. We learned how to entertain at home and make the most of what we had.
- Increasing our income: We found creative ways to make extra money. We used every dollar we earned to tackle the debt faster. If you’re looking for side hustle ideas to boost your income and accelerate your debt payoff, check out my post on top side hustles to pay off debt!
It wasn’t always easy, and there were moments when we were tempted to throw in the towel. But with each payment, we saw the balance get smaller, and the dream of debt freedom started to feel more and more attainable.
Debt Freedom: A New Way of Living
Fast forward to today, and we’re proud to say that we are now debt free. Not only did we pay off $98,000 in debt, but we’ve also built a new relationship with money. We don’t just budget to get by; we budget to thrive. Our finances are now part of our family’s overall well-being, and we are intentional about how we spend, save, and invest.
The most important lesson we’ve learned through this process is that debt enslaves you. It takes away your freedom to make choices, to enjoy life, and to build wealth. But when you’re debt-free, you get to live life on your terms. You can make decisions based on what’s important to you—not on what the bank is demanding from you.
Our Advice for Others: Start Now, No Matter How Small
If you’re reading this and feeling overwhelmed by your debt, know that you don’t have to do it alone, and you don’t have to wait for the perfect moment. Start today. Make a plan. Even if it’s just one small step, it’s a step in the right direction.
Here are a few tips for anyone who’s just starting their debt free journey:
- Create a budget: Track your spending, cut out non-essentials, and focus on saving where you can.
- Get the whole family involved: Share your goals with your family, and make it a team effort. The more support you have, the easier it will be to stay motivated.
- Celebrate the small wins: Don’t wait until you’re completely debt-free to celebrate. Every $1,000 paid off is a victory!
- Stay committed: The road to debt freedom isn’t always smooth, but if you stay committed, you will get there.
Conclusion: A Debt Free Family, A Debt Free Future
Paying off $98,000 in debt was one of the most challenging things we’ve ever done, but it was also one of the most rewarding. Our family is stronger because of it. Our kids understand the value of money and the importance of living debt-free. And we’re more intentional about how we manage our finances now that we’ve seen firsthand how debt can weigh you down.
If we can do it, so can you. Take it one step at a time, stay committed, and know that the journey is worth it. Your future—your debt-free future—is within reach.
If you want to hear more about how we became debt-free and the practical steps we took to get there, check out my YouTube channel for more tips and advice.
