How We Paid Off $27,000 of Debt in 18 Months While Renting
I’m writing this at the same Nashville kitchen table where we once cried over credit card statements. Six months ago we sent the final payment on $27,000 of high-interest debt—all while paying $1,850 a month in rent. Here’s exactly how we did it, what it felt like, and the decisions we’d repeat in a heartbeat.
Where We Started
In spring 2023 we were juggling three debts: $9,800 on a rewards card that turned toxic, $11,600 on our car, and $5,600 left over from a “we’ll pay it off later” wedding loan. We brought home about $6,200 a month after taxes. By the second week of every month we were arguing about gas money and groceries. Interest charges ate the raise I’d worked so hard for.
One Sunday we printed three months of bank statements and highlighted every swipe. Coffee runs, Target strolls, takeout we didn’t even enjoy—$900 a month we couldn’t explain. That night I opened the Mortgage Calculator on this site just to see the amortization table. Entering our debt balances into the fields made the interest hit home. We decided the budget had to change immediately.
The Three Feelings That Forced Action
- • Shame: I advise clients for a living. Making minimum payments while preaching financial freedom didn’t sit right.
- • Anxiety: Breakdowns on road trips made me sweat because the car loan owned our weekend plans.
- • Hope: We wanted to buy a starter home within three years. Debt was stealing that dream one month at a time.
How We Built the Plan
We went zero-based. Every dollar of take-home pay had a job before the month began. I mapped paydays on the calendar, scheduled two rent transfers, and lined up debt payments in between. We cut streaming services to the bare minimum, meal-prepped on Sundays, and gave ourselves a $120 “joy budget” so we didn’t burn out.
| Timeline | Focus | What We Did |
|---|---|---|
| Months 1–3 | Starter emergency fund and a zero-based budget | We capped every discretionary category and hit a $1,000 cash cushion before attacking balances. |
| Months 4–8 | Credit card avalanche | Every spare dollar went to the 23% APR card. We made half-payments every payday to keep momentum. |
| Months 9–12 | Auto loan payoff | We doubled the car note and threw bonuses straight at principal to crush interest. |
| Months 13–18 | Wedding loan + new habits | We treated the final $7,600 like a part-time job: all freelance income went to the balance until it hit zero. |
Emotional Turning Points
Month 5 we wiped out the credit card. Relief was real—and then our alternator died. Old us would have swiped a different card. New us pulled from the starter emergency fund, grabbed the Investment Calculator, and reran the plan. I biked to work for a week while the car sat in the shop. Embarrassed? Not anymore. It felt powerful.
By month 11 we’d sold the dusty photography gear, listed furniture we never used, and hosted a socially distant yard sale. Seeing $960 in cash ready to drop on the auto loan made the sacrifice worth it. Every item out the door was a vote for our future.
What Worked for Us
- • Biweekly money check-ins: We updated balances every payday so the progress bar never went stale.
- • Debt-free thermometer: A $27,000 → $0 chart taped to the fridge gave us a visual high five every time we colored in another block.
- • Side gigs we could sustain: Weekend photo shoots, freelance editing, and the occasional Uber Eats shift plugged every gap.
The Day We Became Debt-Free
On a gray Monday morning the last wedding loan payment cleared. A notification buzzed, I whispered “That’s it?” My husband drummed the steering wheel and let out the biggest laugh. For the first time, buying a home felt possible instead of theoretical.
Where the Money Goes Now
- Down payment fund: We redirect the old debt payments to a high-yield savings account. Every two weeks we revisit the Mortgage Calculator to test updated price ranges and taxes.
- Emergency fund: We’re building six months of essential expenses—rent, groceries, insurance—so surprise repairs don’t send us backward.
- Fun money stays: We budget $150 a month to celebrate progress. Debt-free doesn’t mean joy-free.
If You’re Starting Your Own Payoff Journey
List every balance with the interest rate beside it—treat it like an investment plan. Use the Investment Calculator to model extra payments. Then plug your total debt into the Mortgage Calculator amortization tool to see how extra principal accelerates the payoff. Celebrate every block you color in. We did.
If I could talk to the version of me who was drowning in minimum payments, I’d say this: “Sip your coffee, breathe deep. This grind will make you more patient, more creative, and more generous.” Being debt-free isn’t just a balance sheet achievement—it’s a signature on the kind of life we want to build in the United States, one intentional choice at a time.