How I Faced My Debt (and How You Can Too)

When I first sat down to face my debt, I wanted to do anything but. Honestly? I felt sick to my stomach. I didn’t want to see the numbers. I didn’t want to acknowledge the mess.

But deep down I knew—the only way forward was through.

So, I made myself a strong cup of coffee, pulled out my laptop, and started crunching the numbers.

It wasn’t pretty. It wasn’t a Pinterest-perfect budgeting moment. It was raw. Humbling. But it was also the most empowering first step I could have taken.

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Here’s exactly how I started my debt payoff journey—and how you can too.

Step 1: Face the Numbers (Even if They Scare You)

The very first step is simply knowing what you owe. I wrote down every single debt:

• The total balance owed
• The interest rate (so I could prioritize which to pay off first)
• The minimum payment due each month
• Due dates

Then, I totaled it all up. No sugarcoating. That big scary number became my reality check—but also my starting line.

Your Action Step: Write down every single debt you have. Face the number—it’s the only way to take control.

Step 2: Cut the Fluff From Your Budget

Once I had the numbers, I had to see what money we actually had to work with. I separated our spending into three categories:

• Essentials (housing, utilities, groceries, transportation, insurance)
• Negotiables (subscriptions, eating out, extra shopping)
• Goodbye Expenses (unused memberships, unnecessary upgrades)

If it wasn’t a true need or a value-aligned want, it went.

Your Action Step: Go through your budget line by line. What can stay? What can be cut?

Step 3: Create a Zero-Based Budget

I started using a zero-based budget, which means every dollar had a job. By the end of each paycheck, there were no “unassigned” dollars floating around (because that’s when money tends to disappear).

Here’s how I broke mine down:

• Necessary Expenses: Mortgage, groceries, utilities, gas
• Debt Payoff: Minimum payments + extra toward my top-priority debt
• Savings: Emergency fund + sinking funds
• Spending Money: A small guilt-free category so we didn’t feel deprived

Your Action Step: Assign every dollar from your paycheck.

(If you’d like a pre-built biweekly budget template, I recommend using this budget tracker that makes it easy to manage weekly and monthly spending. Just make a copy and start budgeting!)

Best part is – it’s free!

Step 4: Sell What You Don’t Need

I made a list of everything we could sell: old shoes, unused clothes, even a broken lawnmower.

Below are some of the things I sold to quickly payoff debt and increase our emergency fund.

• Shoes + clothes: $200+
• Farm animals (we live on a farm): $4,000+
• A Suburban that did not run: $1,180
• A Yukon we rarely drove: $4000
• A broken lawnmower: $400

Your Action Step: Walk through your house with a notepad. Write down everything you haven’t used in the last 6 months. Assign a realistic resale value—and sell it. Every dollar goes toward debt or savings.

Step 5: Build a Starter Emergency Fund

Before I threw everything at debt, I built a cushion. Even just $1,000 in the bank gave me breathing room. That way, a flat tire or surprise bill didn’t send me right back into debt.

Your Action Step: Save at least $1,000 as fast as you can. Then, aim for 3–6 months of expenses over time.

Step 6: Separate Your Accounts

This was a game-changer. Instead of having all our money in one account, I separated it by purpose.

Here’s how I setup our bank accounts:

Ally is used for…

• Spending Account (daily spending – no monthly bank fee’s, overdraft fee’s, + paid earlier)
• Grocery Account (food + household supplies)
• Emergency Fund Account (High-yield – currently at 3.5%)
• Sinking Fund Accounts (High-yield + multiple mini-savings for things like holidays, car repairs, etc.)

Our local bank (Arvest) is used ONLY for:

• Bills Account (at my local bank, used only for recurring bills)

Having my paycheck automatically split into these accounts meant I didn’t have to rely on willpower—the money was already where it needed to be. (My company uses Insperity –> if yours does to you can update this in your account).

If you’d like to give Ally a try, you can use my referral link. As of 8.26.2025, Ally is offering a $100 bonus for new accounts.

Click Here –> Ally referral link

Step 7: Set Clear Monthly Goals

I created two goals every month:

• Debt Goal: A set amount to pay down
• Savings Goal: A set amount to add to my emergency or sinking funds

Tracking progress kept me motivated. I personally use the Debt Payoff Planner app to see how much progress I’ve made over time. The app is very affordable, easy to use, and worth the price. I have now been using it for over a year.

Here you can see a little of what the app has to offer.

Step 8: Have the Hard Conversations

If you have a partner, talk about your money. Debt payoff can’t be “your” plan or “their” plan—it has to be your shared plan.

For us, this meant being honest about what we could (and couldn’t) spend, what sacrifices we were willing to make, and what the vision was for our future.

Step 9: Keep the Vision Alive

Debt payoff isn’t just numbers—it’s mindset. Here’s what kept me going:

• Visualizing life after debt: freedom, peace, more choices
• Gratitude journaling: staying grounded instead of focusing only on the debt
• Affirmations: “I am in control of my money. I am building wealth.”

Step 10: Track Everything (Daily)

I printed blank monthly calendars and wrote down:

• Bill due dates
• Debt payments
• Daily spending

I also started using the Monarch app (with a widget on my phone) to track daily transactions. I love that it links to all my accounts, debts, and investments—so I don’t have to log into five different apps every day.

If you’d like to support my content, you can use my referral link—you’ll also get 50% off your first year!

If you would like to try the app click here –> Monarch app

Your Action Step: Find a tracking system that works for you—whether it’s paper calendars, an app like Monarch, or both.

Final Thoughts

This journey isn’t easy. It takes grit, focus, and sometimes saying “no” when you desperately want to say “yes.” But every payment you make is a step toward freedom. Every budget you stick to is proof that you’re in control.

And one day, you’ll look back at that overwhelming day you sat down to face your numbers—and realize that was the day you started changing everything.

✨ Your Turn: Which step do you need to take today? Write it down, commit to it, and start your own journey to financial freedom.

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