How I’m Paying Off $50K in Debt in Under 2 Years

Debt is the worst.

You become a slave to the banks that lent you money.

Honestly, I wish I learned personal finance sooner.

When I started college in 2013, I thought it was free money (oops)!

So I did what any college bro would…

I balled out on organic groceries…

Wait what???

Alright, I gave myself too much credit but I also used it on extras.

• A new DSLR camera

• A luxury apartment near campus

• A degree I won’t use much

Do I regret it?

Somewhat.

But sometimes the hard way is your best teacher. Especially if you were brought up on gifts and big purchases on credit.

So today, I’m sharing the plan I’ve been working on to pay off $50K in debt in under 2 years.

Why pay down debt?

My wife and I discussed our futures.

And I’ve convinced her to look at the horizon.

Because after all, we’re in this for life right? I may have left Money X, but I learned a thing or two about marketing psychology 🤫

So why is this a priority now?

We want to improve our home but the loans are taking a chunk out of our pockets.

Two years ago, we paid down $47K from the student loan I used for the coding boot camp, a car loan, and a credit card.

Now, we have two more targets—a land mortgage and a personal loan we used to move the house.

Some people think:

“Why not just live life? You’re never going to pay off debt anyways.”

Sad, but real words I don’t agree with.

Because paying off debt gives me a sense of inner peace.

You feel in control when you don’t owe anyone money—whether it’s the slimy government or a greedy loan company.

Fueled by the many mistakes of my 20s, I’m making up for it by sacrificing superficial now for freedom later.

A big win in my eyes.

If you’re looking to pay off debt quickly, these are the two best ways:

The Snowball Method

Start with the smallest debt first.

Make the minimum payments on all your debts, but focus any extra money from side jobs, bonus income, etc. on that smallest debt. Once paid, roll over the combined payment into the next smallest debt, and so on.

It’s like a snowball that builds momentum and confidence as you see your debt getting smaller.

I recommend this for quick wins to boost confidence sooner.

Next is the one I’m using.

The Avalanche Method

Here you focus on the debt with the highest interest rate first.

The biggest benefit is saving money from interest in the long run. It may take longer to pay off the initial debts but when interest rates are high, this one makes more sense.

But there’s one more thing you should consider for each method:

A backup plan.

Even if you’re going hard on debt, you need savings for emergencies.

In Dave Ramsey’s Baby Steps, he recommends $1,000, but this isn’t sufficient these days (inflation).

I’m aiming for 2-3 months of expenses as a bigger safety net. You never know when things will hit the fan like losing a job, clients, or a sudden shift in the economy (like this upcoming election).

Better prepared than scared.

Either system makes you intentional with your money. Once set up, it’s low-maintenance and easy to execute.

However, tracking your income and expenses is key.

You need to know where your money is going if you’re going to pay debt fast. I use Monarch Money to track my budget automatically.

I like it because it’s easy to manage all your accounts and set budgets quickly. The algorithm can help categorize transactions and I spend very little time reviewing them for accuracy.

Try it free for 30 days if you’re interested.

So, here’s my plan you can follow or modify to your needs.

I’m starting with the personal loan. It’s $27K at about 12% interest with a monthly payment of around $615.

We’re focusing all our extra money on that one first.

Once that’s knocked out, we’ll roll that combined payment into the next one—the land loan.

By the time both are paid off, we’ll have an extra $889 a month in our pockets. That’s a huge relief, and it’s only going to get better as we build our income over time.

Next, we’ll decide on how we’re going to improve our land or pay down our mortgage.

Either way, we’ve hit a huge milestone (act as if your goals are already true)!

Pro Tips

If you’re serious about getting rid of debt, make it your top priority.

Health goals need to be put on maintenance and hobbies with high overhead should be eliminated for now. The more focused you are, the faster you’ll see results.

How to pay off your debt faster:

Increasing income

Whether it’s from your job, a side gig, or selling stuff you don’t need (enter minimalism), an extra $100 here and there makes a huge difference when it all adds up.

Decreasing my expenses 

And let’s be real, you don’t need a lot of fancy stuff to be happy.

My wife and I cut back on so many things, like eating out and random Amazon stuff. We aren’t bitter. We focus more on time as a family instead of material junk.

Bonus points for the health benefits of cutting off alcohol and junk food!

Hope this helps!

What’s your most annoying debt right now?

Let me know!

Stay calm, clear, and creative,

Brand Marz

P.S.

Tracking budgets is annoying and time-consuming.

That’s why I got Monarch to help my wife and I automate it.

We see transactions from all our accounts and see our debt going down every month.

I picked it up because it’s low-maintenance and easy to use.

We can both see the same accounts (so no more sneaky Amazon purchases 😏)

Check out Monarch free for 30 days if you want to save money and time.