I’m going to be painfully honest right now.

Somehow, over the years, we (my late husband and I) have gotten ourselves in a bit of a bind with debt. I’m very embarrassed to admit that I pay more for credit card payments than living costs. This is just not a sustainable lifestyle, and someday, I would like to retire…preferably debt-free.

I’m a librarian, so I did my research before starting our budget and payoff plan. What would be the best, quickest, and least painful way to become debt-free before my full retirement age (which, to be perfectly honest, isn’t that far away)? 

Much of my research has led me to articles like this one. 

13 Common Mistakes That Slow Down Your Journey to Debt Freedom

Story by Kristin Stones – 

1. Failing to prioritize an emergency fund
   • I’m not going to lie; I’m bad at this. I only have $25 monthly automatically going into savings (this is discretionary money, not retirement money). Granted, I don’t touch this money, but it hasn’t increased much in the last five months since I started my plan. Not nearly enough for an emergency. I have focused so much on paying down credit card debt that if I were to have an emergency, I would have to use a credit card to pay for it. I need to do better.

2. Making only minimum payments
   • I have a plan for this. On our credit card bills (I’m sure this is true for everyone), there is a section that says something to the effect if you pay the minimum, it will take X number of years to pay off and then gives you an amount to pay if you want to pay them off in three years. I’ve chosen the three-year plan for all our credit card payments. So, no matter what, I’ll be paid off in three years and will have saved a ton of interest.
3. Not having a clear payoff plan
   • I’m happy to say I’m excelling at this one. Since October, I’ve stuck to a budget, paid all our credit cards on time, and paid more than the minimum and sometimes more than the “three-year” amount. Yay me!
   • Could I settle these debts instead of paying them off fully? Sure, but there is a catch to settlement. Settled debts are noted on your credit report. This causes a couple of problems,
     • It could lower your credit score.
     • It could take years for them to drop off your report, making it harder to get lenders to work with you later.

I could try for debt consolidation, but I’ve researched this so much that I’m now a nervous Nelly about it. I may rethink this later, but right now, I feel I’m on the right track.

4. Continuing to use credit cards
   • I use my debit card or cash only, with two exceptions.
     • Ordering online: I can dispute charges with a credit card, but I understand that I can’t with a debit card.
     • If the order is large enough, my credit card cashback offer or points make it worth it. I have browser extensions. Capital One is my preferred one, which finds coupons and gives cash back (this is not a plug for Capital One or any of the other extensions. It is just my preferred, i.e., they aren’t paying me). So, if I have a large purchase that I need to make, it makes sense to use my credit card.
     • The caveat to these two exceptions is that I pay them off the next month.
5. Borrowing from retirement accounts
   • I’m ashamed to admit it, but I had to do this before I started my budget and payoff plan. I don’t do it anymore. Now that I’ve paid off enough credit cards, I put that extra money to overpay or pay off the next card.
6. Ignoring high-interest debts first.
   • I use the snowball method of paying off debt. This means I pay the lowest balance first, then the next, and the next, etc. This is a psychological thing for me. I feel like I’m making progress and have a sense of achievement. As those small balances disappear, I’ll move on to the remaining high-interest debts.
7. Canceling credit cards immediately
   • I never do this. As the article says, “Paying off a credit card feels satisfying, but canceling it could hurt your credit score.” My credit score has increased by 30 points since paying down even a tiny part of my debt, and I won’t do anything to mess that up. 
8. Living without a budget
   • I didn’t have a budget for a long time, and you can see where it got me. I now have monthly budget spreadsheets extending to September 2025 that I update every time I pay a bill or purchase an item. It takes minutes, but I am never worried about where I am spending or what I have left to spend. It is freeing. While my budget spreadsheet could be more granular, i.e., separating food, medications, and entertainment, I don’t see the value. 
9. Letting unexpected expenses derail progress
   • This is why I need to focus a little more on my emergency fund. As with most Americans, I am a paycheck away from genuine hardship. 
   • I have to say that I built a larger-than-needed “food, medications, and entertainment” budget that usually covers most unplanned or planned costs (dog grooming, car oil changes, or a new tire). 
10. Failing to address spending triggers
    • This is emotional spending for me. When I get depressed, I don’t head for the carton of ice cream; I head for online shopping. I know this about me. I like to think that this makes me self-aware, but I am really only concerned about this one thing. LOL! To address this, I’ve started a “put it in the cart, then wait two days” approach before hitting the buy button. It has saved me hundreds of dollars because I usually figure out I don’t need the item(s).
11. Overlooking balance transfer options
    • We used to get these all the time, but they stop sending them when you get way over your head. I suspect that when I get more in control of my debt, they will return, and I will take advantage of them.
12. Neglecting to celebrate milestones
    • I celebrate with small things. I love to repurpose items from thrift stores. I’ll buy a half-price thing at the thrift store and turn it into something else. When I paid off a credit card the other day, I headed to the thrift store. I found a tall wicker plant stand and a small table lamp. The total spend was seven dollars. I made them into an outside porch light that I love. Additionally, I love to garden. Instead of buying expensive planters, strawbales, and soil, I’ve negotiated with a general contractor for the strawbales he’s using to insulate hydrants for the winter. I’ll use them as raised garden beds when he is done with them. I’m very excited! I’ll save $150 for bales, and he will save money on disposal. Win! Win!
13. Relying on Debt alone for big purchases
    • “Some people delay paying off debt because they keep borrowing for big expenses, like vacations or furniture. If it’s not urgent, save up first instead of adding more debt. Learn to delay gratification while you’re working on financial freedom.” I don’t plan big vacations anymore. I’m perfectly happy with taking our travel trailer to a local state park and spending a long weekend. After I get closer to my goal, I’ll start saving for a big trip as a reward.

This is about changing my habits and paying off my debt. Over the years, as my income grew, so did my (our) spending habits. I’m moving back to my frugal lifestyle of 20+ years ago. That was my comfort place. We made half the money I make now, but we saved a lot more and had a lot less stress over money. I want to get back to that place.

I am proud to say that since October, I’ve stuck to a budget, paid all our credit cards on time, and paid more than the minimum. 

I have paid off over $25,000 in debt in five months using this plan. My ultimate goal is to pay off my private student loans, Federal student loans (on the public student loan forgiveness plan), travel trailer, and credit cards by December 2026, twenty-seven months after starting my budget and pay-off plan.

Ambitious? Yes, but I believe it is doable.