Debt-Free Journey: How Paying Off Debt Changed My Life and Brought Peace

I'm a big fan of personal freedom. It’s not just about the ability to make choices or travel the world—it’s about the peace of mind that comes with financial independence and having control over your own life. For years, I felt that my freedom was being stifled. The culprit? Debt. Because, as far as I’m concerned, carrying debt can lead us onto, and keep us on, rocky roads for far too long.

There was a time when I worked tirelessly to make lenders rich, only to watch the interest mount month after month, while I barely made a dent in the principal. It wasn’t until I took a hard look at my finances and committed to getting out of debt that I realized how much unnecessary stress, anxiety, and wasted money had been tied up in it. If I had been more focused and intentional sooner, I could have saved myself not only financial strain but also the emotional weight of constantly worrying about money.

So, what did it take to get debt-free? It wasn’t a quick fix, but it was absolutely worth it. In this post, I’ll share the steps I took, the methods I used, and the mindset shifts I had to embrace to pay off my debt—and how you can do the same.

Acknowledging the Problem and Setting a Goal

The first step toward becoming debt-free was acknowledging that things were going to be different for a while. I was determined to pay off my debt in a year. While this may sound like an ambitious goal (unless you wisely have much less debt), it was possible. I had to create a mindset shift: I had to make sacrifices in the short term for long-term financial freedom.

Of course, when I say "debt-free," I’m not talking about a mortgage. For most people, paying off a mortgage within a year isn’t realistic, and frankly, it wasn’t my focus. I was more concerned with smaller, more manageable debts: credit cards, personal loans, auto loans, and other high-interest debt that was draining my finances. But even with smaller debts, the sense of relief that comes with clearing them is immense.

Choosing the Right Debt Payoff Strategy: The Avalanche Method

Once I made the commitment to get out of debt, I knew I needed a plan. There are a lot of strategies out there for paying off debt—two popular ones being the Snowball and Avalanche methods.

The Snowball Method involves paying off your smallest debt first, regardless of interest rate, and then moving on to the next smallest, and so on. The idea is that by getting quick wins, you’ll build momentum and stay motivated to continue paying off your debts.

But for me, the Avalanche Method made more sense (after I first used the Snowball Method, but more on that in a minute). In this strategy, you focus on paying off your highest-interest debt first. This saves you money in the long run because you’re tackling the debts that are costing you the most in interest. Once the highest-interest debt is paid off, you move on to the next highest, and so on. While the Avalanche method may not provide the instant gratification of the Snowball method, it’s a more financially efficient way to get out of debt faster.

To put it simply, I wanted my money to work as hard as possible for me, and I didn’t want to waste another penny on interest when I could be putting that money toward saving or investing for the future.

I will add that I used the Snowball Method for the first month because I had two small debts that were easier to pay off and remove from the active ledger. Once I had that gratification, I moved on to the Avalanche method.

The Power of a Simple Spreadsheet

I know it sounds cliché, but getting organized was crucial to my success. I kept things simple by using a spreadsheet to track everything, and since I already did this for monthly expenses, it was easy to add a tab for debt payoff. In the spreadsheet, I listed all my debts—by creditor, interest rate, and balance. I also included realistic monthly payments and the extra amounts I could put toward each debt.

By laying everything out visually, I could see exactly where I stood. I could also identify where I could make adjustments or cut back in my budget to increase my payments. For example, if I received a bonus, I knew X dollar amount would go into savings, and any extra money would go directly toward paying off my debt rather than being absorbed into unnecessary expenses. I did cut back on saving for the first six months to focus on paying off debt, without tapping into existing savings except for emergencies.

Creating a Budget and Cutting Back

Speaking of expenses, budgeting was a critical part of my debt payoff plan. I had to get strict about my spending. While I didn’t go to extravagant lengths, I did make sure to prioritize my finances over fleeting desires. I started by looking at my current spending patterns and identifying areas where I could cut back.

One of the biggest factors that helped was that I was already a bit of a homebody. I didn’t spend money on dining out, expensive vacations, or gadgets that would only gather dust. This gave me a bit of an edge because I didn’t have to make huge lifestyle changes to trim my budget. However, I still found ways to cut back in other areas, like reducing my subscriptions, minimizing impulse buys, and sticking to a strict grocery budget.

Every dollar I saved in my daily life went toward my debt repayment, and seeing those numbers go down in my spreadsheet gave me the motivation to stay focused.

Discipline and Delayed Gratification

Let’s face it: paying off debt is not fun. It requires a level of discipline and self-control that many people, myself included, often struggle with. But that’s where the power of delayed gratification came in. I had to remind myself that the sacrifices I made today were going to pay off in the long run. Yes, it was hard to say no to impulse purchases, but every time I resisted the urge, I felt like I was inching closer to the life I wanted.

For me, it was also about reframing my thinking. I used to see debt repayment as a burden, but as I kept going, I started to see it as an investment in my future freedom. It was a temporary sacrifice for permanent financial security, and that made it easier to stay disciplined.

The Payoff: Financial Freedom and Peace of Mind

By the end of the year, I had paid off all my debt. The feeling of freedom that came with that was beyond words. I no longer had the weight of bills hanging over my head, and I could finally see the light at the end of the tunnel. Interestingly, I had always thought I was great with money, and in some ways I was when it came to managing my monthly budget, but for too long I had ignored the enormity of the debt's weight.

I didn’t stop there, either. After paying off my debt, I started rebuilding my savings and investing for the future. It's amazing how much faster savings accumulates when money isn't going to credit card interest and car loans. What I once thought was an insurmountable challenge had become a springboard to a brighter financial future.

Debt: One of Life’s Great Rocky Roads

Debt is often one of life’s greatest rocky roads. It creeps up on you slowly, then suddenly, it feels like you're carrying a heavy weight with every step you take. For many, it becomes an endless cycle of making minimum payments, watching interest pile up, and feeling stuck in a financial rut. It can feel like an insurmountable obstacle, but the truth is, once you start the journey toward being debt-free, the sense of freedom that comes with it is transformative.

It’s not just about money—it’s about regaining control over your life. You begin to realize that every dollar you earn can be put to use in ways that serve your goals and your well-being, rather than disappearing into someone else’s pocket. That’s when you truly understand what freedom feels like: the ability to make choices without the shadow of debt hanging over you, and the peace of mind that comes with financial security. Life’s rocky roads may be unavoidable, but when you’ve cleared the debt path, you’ve paved the way for so much more possibility.

It’s Never Too Late

If there’s one thing I want you to take away from this post, it’s this: It’s never too late to take control of your finances. Whether you have a small amount of debt or a large amount, the key is to stay disciplined, create a plan, and stay committed. Personal freedom is not just about what you can do—it’s about what you can do without the chains of debt holding you back.

Getting debt-free wasn’t easy, but it was one of the best decisions I’ve ever made. If I can do it, so can you. All it takes is a plan, a little sacrifice, and a lot of determination. Take that first step today—your future self will thank you.