By Mint Money Guide Team
December 2, 2025
In January 2019, I hit rock bottom financially. I was 28 years old, earning $58,000 per year, and buried under $80,000 in debt:
Every month, I sent $1,847 in minimum payments to creditors. That's nearly half my take-home pay vanishing before I paid for rent, food, or anything else. I couldn't save. I couldn't invest. I couldn't breathe.
I tried ignoring it. I tried budgeting. I even tried the debt snowball method everyone recommends. Nothing stuck.
Then I discovered the debt avalanche method. In just 4 years, I paid off all $80,000, saved over $12,000 in interest compared to other methods, and completely transformed my financial life.
Here's the exact strategy I used, the mistakes I made, and how you can replicate my results to become debt-free faster than you think possible.
The debt avalanche method is a debt repayment strategy where you pay off debts in order from highest interest rate to lowest, regardless of balance.
How it works:
Why it works:
Interest is the enemy. Every day you carry high-interest debt, you're paying the bank instead of building wealth. By targeting the highest-interest debt first, you minimize the total interest paid and become debt-free faster.
The debt snowball method (popularized by Dave Ramsey) says to pay off the smallest balance first for psychological wins. The avalanche method says to pay off the highest interest rate first for mathematical efficiency.
Debt Snowball Pros:
Debt Snowball Cons:
Debt Avalanche Pros:
Debt Avalanche Cons:
My take: If you're mathematically minded and motivated by saving money, use the avalanche. If you need quick wins to stay motivated, use the snowball. But know that the avalanche will save you thousands.
In my case, the avalanche saved me $12,000 in interest compared to the snowball method. That's $12,000 I invested instead of giving to banks.
Here's exactly what I owed in January 2019, ordered by interest rate (avalanche order):
1. Credit Card #1 (Target RedCard): $4,200 at 24.99% APR
2. Credit Card #2 (Chase Freedom): $6,800 at 22.99% APR
3. Credit Card #3 (Capital One): $4,000 at 19.99% APR
4. Credit Card #4 (Discover): $3,000 at 17.99% APR
5. Personal Loan: $8,000 at 12% APR
6. Car Loan: $22,000 at 7.5% APR
7. Student Loans: $32,000 at 5.5% APR
Total debt: $80,000
Total minimum payments: $1,847/month
Total interest accruing: $329/month ($3,948/year)
I was drowning in interest. Nearly $4,000 per year was going straight to banks, and that's WITH making minimum payments. If I only paid minimums, I'd pay over $130,000 total—$50,000 in interest alone.
That number shocked me into action.
The hardest step was acknowledging the problem. I'd been avoiding my debt for years, only paying minimums and hoping it would magically disappear.
What I did:
My goal: Pay off all $80,000 in 5 years or less
With minimum payments at $1,847/month and my take-home pay around $3,800/month, I only had $1,953 left for rent, food, and everything else. I was barely surviving, let alone finding extra money for debt.
I had to make dramatic changes:
Change #1: I moved back home for 18 months (saved $1,200/month)
This was humiliating at 28 years old. But it was temporary, and it supercharged my debt payoff. I went from $1,100 in apartment rent to $200 helping with groceries at my parents' house.
Change #2: I sold my car and bought a $5,000 beater (eliminated $487/month payment)
I sold my financed car, paid off the $22,000 loan, and bought a 2010 Honda Civic with 140,000 miles for $5,000 cash (from my emergency fund, which I replenished later). No car payment freed up nearly $500/month.
Change #3: I started a side hustle (added $600-1,000/month)
I picked up freelance web development work on Upwork. Most months I made $600-800 extra; some months hit $1,200.
Change #4: I cut expenses ruthlessly
Total extra money found: $2,800/month
This meant I could throw $2,800/month at debt beyond minimum payments. Combined with the $1,847 in minimums, I was now attacking debt with $4,647/month total.
Following the avalanche method, my first target was Credit Card #1 (Target RedCard) with $4,200 at 24.99% interest.
My payment strategy:
Result: Paid off in 1.5 months (by mid-February 2019)
Seeing that first debt disappear was addictive. I immediately moved to Credit Card #2.
Once Credit Card #1 was gone, I redirected that entire $3,052 payment to Credit Card #2 (Chase Freedom, $6,800 at 22.99%).
Now I was paying:
Result: Paid off in 2.3 months (by late April 2019)
Two credit cards down in just 4 months. The momentum was real.
Month 0 (January 2019): Starting Point
Month 1.5 (Mid-February 2019): Credit Card #1 eliminated
Month 4 (Late April 2019): Credit Card #2 eliminated
Month 7 (August 2019): Credit Card #3 eliminated
Month 9 (October 2019): Credit Card #4 eliminated
Month 14 (March 2020): Personal loan eliminated
Month 18 (July 2020): Moved out of parents' house
Month 20 (September 2020): Car loan eliminated (already sold car, but paid off negative equity)
Month 30 (July 2021): Student loans halfway paid off
Month 41 (June 2022): Student loans eliminated
I crushed my 5-year goal and finished in under 3.5 years.
If I had used the debt snowball method (paying smallest balance first), here's how it would have looked:
Snowball order:
Result with snowball: Would have taken 45 months and paid $19,200 in total interest
My result with avalanche: Took 41 months and paid $7,100 in total interest
Savings: $12,100 and 4 months faster
That $12,100 is money I invested instead of giving to banks. It's now worth over $18,000 thanks to compound growth.
Challenge #1: Living at home at 28 was embarrassing
Solution: I reminded myself it was temporary. I'd rather be embarrassed for 18 months than broke for 18 years. Ego is expensive.
Challenge #2: Friends didn't understand why I couldn't go out
Solution: I told close friends about my debt payoff journey. Real friends supported me and suggested cheaper hangouts (hiking, potlucks, game nights at home).
Challenge #3: Side hustle burnout
Solution: I worked 50-60 hour weeks for nearly 2 years. It was exhausting. I took one weekend per month completely off to recharge, and reminded myself this was temporary.
Challenge #4: Wanting to give up
Solution: I created a visual debt tracker on my wall. Every time I paid off $1,000, I colored in a section. Seeing progress kept me motivated.
Challenge #5: Unexpected expenses derailing progress
Solution: My car needed a $1,200 repair in month 8. I had to pause aggressive debt payments for one month to save for it. That's okay. Life happens. I got back on track the next month.
Then (January 2019):
Now (2023 onward):
That $1,847 I used to send to creditors? Now it goes to my future. I max out my Roth IRA, contribute to my 401(k), invest in a taxable brokerage account, and still have money left for fun.
Step 1: List all your debts
Create a spreadsheet with:
Step 2: Order debts from highest to lowest interest rate
This is your avalanche order. The top debt is your first target.
Step 3: Calculate total interest you'll pay with minimum payments only
Use online calculators or spreadsheets. This number will shock and motivate you.
Step 4: Find extra money
Ways to find $500-2,000+ extra per month:
Step 5: Attack the highest-interest debt
Make minimum payments on everything, then throw every extra dollar at the highest-interest debt.
Step 6: When first debt is gone, move to the next
Take the entire payment you were making on the first debt and add it to the minimum payment of the next highest-interest debt.
Step 7: Track progress visually
Use a chart, thermometer, or coloring page to visualize your debt payoff journey. Seeing progress maintains motivation.
Step 8: Celebrate milestones
When you pay off a debt, celebrate (inexpensively). Go out for a nice dinner, take a day trip, buy yourself something small. Acknowledge the win.
Step 9: Don't take on new debt
Cut up credit cards if needed. Freeze them in a block of ice. Do whatever it takes to stop using debt while you're paying it off.
Step 10: Stay consistent
Some months will be hard. You'll want to give up. Don't. Stay consistent, and in 2-5 years, you'll be completely debt-free.
Strategy 1: Balance transfer to 0% APR credit card
If you have good credit, transfer high-interest credit card debt to a 0% APR balance transfer card (usually 12-18 months interest-free). Pay it off aggressively before the promo period ends.
Strategy 2: Debt consolidation loan
Take out a personal loan at a lower interest rate to pay off high-interest debt. This simplifies payments and reduces interest, but only if you get a significantly lower rate.
Strategy 3: Negotiate lower interest rates
Call credit card companies and ask for a lower rate. If you've been a good customer, they often comply. Even a 3-5% reduction saves hundreds.
Strategy 4: Use windfalls
Tax refunds, bonuses, gifts, inheritance—throw 100% at debt. A $3,000 tax refund could eliminate an entire credit card.
Strategy 5: Pause retirement contributions temporarily (controversial but effective)
If you're paying 20% interest on credit cards but only earning 8% in your 401(k), it mathematically makes sense to pause retirement contributions and attack debt. Only do this for high-interest debt, and only temporarily.
Use online calculators like:
Input your debts and see exactly:
If you're truly living on minimum wage with no room to cut expenses or increase income, the avalanche method still works—it just takes longer.
Focus on these micro-changes:
Even an extra $25/month accelerates payoff and saves interest.
Step 1: Build a 3-6 month emergency fund
Take those debt payments and redirect them to savings until you have 3-6 months of expenses saved.
Step 2: Invest aggressively
Step 3: Save for goals
Step 4: Give back
Once you're financially stable, consider helping others on their debt-free journey or donating to causes you care about.
Paying off $80,000 in debt was the hardest thing I've ever done. I sacrificed nights out, vacations, new clothes, and my pride (living at home at 28).
But every single sacrifice was worth it.
Now I sleep peacefully. I don't stress about bills. I'm building wealth instead of paying banks. I have options. I have freedom.
If I can pay off $80,000 on a $58,000 salary, you can become debt-free too. It doesn't matter if you owe $5,000 or $500,000. The method is the same:
The avalanche method isn't sexy. It's not a magic trick. It's math and discipline.
But it works.
Start today. List your debts. Order them by interest rate. Make a plan. And take the first step toward financial freedom.
Your debt-free life is waiting. Go get it.
Written by
Expert financial strategists dedicated to helping you achieve financial freedom through proven wealth-building methods.
This article is for informational and educational purposes only and should not be construed as financial, investment, tax, or legal advice. The content represents the opinions and experiences of the author and is not personalized to your individual situation. Before making any financial decisions, you should consult with qualified professionals who can assess your personal circumstances. Past performance does not guarantee future results. Investing involves risk, including the potential loss of principal. Mint Money Guide and its authors are not responsible for any actions you take based on the information provided in this article.
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