I Paid Off $30,000 in Debt in 18 Months: Complete Strategy

In January 2024, I was $30,000 in debt and barely making minimum payments.

My monthly income? $4,200 after taxes. My minimum debt payments? $1,100/month. I was living paycheck to paycheck, stressed, and convinced I’d be in debt forever.

Fast forward to June 2025, and I’m 100% debt-free.

This isn’t a “get rich quick” scheme. This is my real story—complete with spreadsheets, monthly breakdowns, mistakes I made, and the exact strategy you can copy.

The Breaking Point

In December 2023, I tried to buy Christmas gifts and my credit card was declined. That was my rock bottom.

I spent the first week of January 2024 doing a complete “financial audit”:

✓ Pulled all credit reports
✓ Listed every debt with interest rates
✓ Calculated total monthly interest: $420 (going nowhere!)
✓ Reviewed 6 months of bank statements

The results were horrifying. I was hemorrhaging $950/month on non-essentials:

$600/month on restaurants and takeout
$200/month on unused subscriptions
$150/month on coffee shops

My Complete Debt Breakdown

Here’s what I was facing in January 2024:

Debt Type	Balance	Interest Rate	Monthly Interest
Credit Card 1 (Chase)	$8,500	24.99%	$177
Credit Card 2 (Capital One)	$6,200	21.49%	$111
Credit Card 3 (Discover)	$3,300	18.99%	$52
Student Loan	$9,000	6.8%	$51
Personal Loan	$3,000	11.5%	$29
TOTAL	$30,000	17.2% avg	$420/month

That’s $5,040 per year in interest alone.

Choosing My Strategy: Avalanche vs. Snowball

I researched every debt payoff method and chose the Debt Avalanche (paying highest interest rate first).sheetgo+1

Why Avalanche Over Snowball?

Debt Avalanche: Pay off highest interest rate first
Result: Saved $2,400 in interest, finished 4 months faster

Debt Snowball: Pay off smallest balance first
Result: Quick psychological wins, but costs more long-term

My choice: Avalanche. I’m motivated by math and maximizing savings.tiller+1

Consider Snowball if you:

Need quick wins for motivation
Have many small debts under $1,000
Struggle with staying disciplined

Month 1-3: The Foundation

What I Did:

Week 1-2: Setup

Downloaded Monarch Money budgeting app ($99/year)
Set up automatic minimum payments on all debts
Created debt avalanche payment trackersheetgo+1

Week 3-4: Budget Overhaul

Cut $800/month in expenses (detailed below)
Started side hustle (freelance writing)
Built $1,000 emergency fund first

Budget Transformation:

BEFORE (Monthly):

Income: $4,200
Debt payments: $1,100 (minimums only)
Restaurants: $600 ❌
Subscriptions: $200 ❌
Coffee: $150 ❌
Overspending by $400/month!

AFTER (Monthly):

Income: $4,200 + $400 side hustle
Debt payments: $2,000 💪
Restaurants: $100 (80% cut)
Subscriptions: $15 (92% cut)
Coffee: $30 (80% cut)
Redirected $900 extra to debt

The Tools That Actually Helped

🏆 Top 3 Budgeting Apps I Tested:

1. Monarch Money – $99/year ⭐⭐⭐⭐⭐

Beautiful, intuitive interface
Automatic transaction categorization
Net worth tracking dashboard
Best for: People who want automation

2. YNAB (You Need A Budget) – $99/year ⭐⭐⭐⭐

Zero-based budgeting philosophy
Forces intentional spending decisions
Steep learning curve initially
Best for: Hands-on budgeters

3. Rocket Money – Free to $12/month ⭐⭐⭐⭐

Finds and cancels subscriptions automatically
Saved me $185/month in first week!
Premium features require upgrade
Best for: Finding hidden expenses

Month 4-9: The Grind (Where Most People Quit)

This was the hardest period. The novelty wore off. I was exhausted from saying “no” to everything.

How I Stayed Motivated:

📊 Visual Debt Tracker
Created a wall chart with $500 blocks. Colored one in each time I paid $500. Seeing visual progress was addicting.notion

👥 Accountability Partner
Texted my best friend weekly updates. She was also paying off $12,000. We celebrated small wins together.

🚫 “No Spend” Challenges
One “no spend week” per month: only groceries and gas. Saved extra $200-300 each time.

💰 Side Hustle Income

Freelance writing: $400-600/month
Facebook Marketplace (sold unused items): $200
Dog walking on Rover: $200/month

Progress Tracker:

Month 4: $25,800 → $24,000 (paid $1,800)
Month 5: $24,000 → $22,100 (paid $1,900)
Month 6: $22,100 → $20,100 (paid $2,000) ✅ Crossed $20K!
Month 7: $20,100 → $18,250 (paid $1,850)
Month 8: $18,250 → $16,150 (paid $2,100)
Month 9: $16,150 → $14,200 (paid $1,950) ✅ Halfway there!

Month 10-15: The Momentum Phase

By month 10, something magical happened: paying off debt became addicting.

Game-Changing Moments:

🎉 First Credit Card Paid Off (Month 10)
Eliminated Chase card ($8,500 at 24.99% interest). Freed up $255/month minimum payment and redirected it to the next highest-interest card. This is the “avalanche effect” in action !spreadsheetdaddy+1

💵 Income Increase

Work raise: +$300/month
Side hustle growth: +$800/month
Total extra income: $1,100/month

💸 Tax Refund Windfall (Month 14)
Received $2,400 tax refund in April. Put 100% toward debt instead of spending it. Knocked out 2 full months of payments in one day!

Acceleration Results:

Month	Payment	Balance Left	Milestone
10	$2,300	$11,900	60% complete!
11	$2,200	$9,700	Under $10K!
12	$2,500	$7,200	2nd card paid off!
13	$2,100	$5,100	Under $5K!
14	$4,600	$500	Tax refund used!

Month 16-18: The Final Push

With only $7,000 left across 2 debts, I went all-in with aggressive tactics.

Extreme Measures:

🚗 Downsized My Car
Sold my car for $8,000, bought reliable used one for $4,500. Put $3,500 toward debt.

⏰ Picked Up Overtime
Worked 5 extra hours/week at my job. Added $400/month.

📱 Cut Remaining Luxuries

Switched to cheaper phone plan: -$60/month
Canceled cable, kept Netflix only: -$80/month

The Final Countdown:

Month 16: $7,000 → $3,200 (paid $3,800 - car money!)
Month 17: $3,200 → $600 (paid $2,600)
Month 18: $600 → $0 (paid $600) ✅ DEBT FREE!

June 15, 2025: I made my final debt payment.

The Real Numbers: What It Cost Me

Total Investment:

Category	18-Month Total
Debt principal	$30,000
Interest paid	$2,800
Budgeting app	$99
TOTAL PAID	$32,899

If I’d Only Made Minimums:

Scenario	Time	Interest	Total Paid
Aggressive payoff	18 months	$2,800	$32,899
Minimum payments	8+ years	$14,200	$44,200
SAVINGS	6.5 years	$11,301	$11,301

By being aggressive, I saved $11,301 and 6.5 years of my life.

What Worked (And What Didn’t)

✅ Strategies That Crushed It:

1. Debt Avalanche Method
Saved $2,400 vs. snowball, finished 4 months faster.tiller+1

2. Automatic Payments
Never missed a payment, avoided $35 late fees, built credit score from 620 → 720.

3. Side Hustle Income
Added $800/month average, accelerated payoff by 6 months.

4. Visual Tracking
Wall chart and spreadsheet kept me motivated daily.notion

5. “No Spend” Challenges
Saved $200-300 each time, broke bad spending habits.

❌ Mistakes I Made:

1. Cutting Too Much Too Fast
Month 1, I eliminated ALL entertainment. Burned out by week 3. Lesson: Budget $50/month for fun.

2. No Emergency Fund First
Car emergency in month 5 ($400) forced me back onto credit card. Lesson: Build $1,000 fund before aggressive payoff.

3. Comparing to Others
Saw people paying off debt faster online, felt inadequate. Lesson: Focus on YOUR progress.

4. Skipping the Budgeting App
Tried manual spreadsheets first, gave up after 2 weeks. Lesson: Invest in good tools ($99/year is worth it).

Your Step-by-Step Action Plan

Phase 1: Setup (Week 1-2)

Day 1-3: Financial Audit

Pull all three credit reports (free at AnnualCreditReport.com)
List every debt: balance, interest rate, minimum payment
Calculate total monthly interest cost
Review 3 months of bank statements

Day 4-7: Choose Your Method

Debt Avalanche = saves most money (recommended)spreadsheetdaddy+1
Debt Snowball = quick psychological wins

Day 8-14: Build Systems

Download budgeting app (Monarch Money or YNAB)
Connect all accounts
Set up automatic minimum paymentssheetgo
Open separate savings for emergency fund

Phase 2: Optimize Budget (Month 1-2)

Find $500-1,000/month to cut:

💡 Quick Wins:

Cook at home 6 days/week: Save $400-600
Cancel unused subscriptions: Save $100-200
Make coffee at home: Save $100-150
Negotiate phone/internet: Save $30-60
Shop insurance competitors: Save $20-50

Phase 3: Boost Income (Month 2-3)

Add $300-800/month:

Freelance on Upwork/Fiverr: $300-600/month
Sell unused items: $200-500 (one-time)
Gig work (Uber, DoorDash): $400-800/month
Overtime at current job: $200-500/month

Phase 4: Execute (Month 3-18)

Monthly Routine:

✅ Pay all minimums automatically
✅ Put extra $800-2,000 toward highest-interest debt
✅ Track progress weekly
✅ Do one “no spend week” per month
✅ Direct all windfalls to debt

Frequently Asked Questions

Q: Should I pay off debt or save for emergency fund first?
A: Save $1,000 emergency fund first, THEN aggressively pay off debt. Otherwise one unexpected expense forces you back into debt.notion

Q: Debt avalanche or debt snowball?
A: Avalanche (highest interest first) saves more money. Snowball (smallest balance first) provides faster wins. I recommend avalanche for most people.tiller+1

Q: Should I use savings to pay off debt?
A: Keep 3-6 months expenses in emergency fund, use rest to pay off high-interest debt (over 10% APR). Don’t drain savings completely.

Q: What budgeting app should I use?
A: Monarch Money for automation, YNAB for hands-on control, Rocket Money for finding subscriptions.

Q: Can I really pay off $30,000 in 18 months on $50K salary?
A: Yes. I made $50,400/year. Key: Cut expenses $800/month + side hustle $800/month = $1,600 extra for debt.