Paying off a mountain of debt might seem impossible — but one determined borrower proved it can be done faster than you’d think. In just 12 months, they wiped out $20,000 of debt, and today, we’re breaking down exactly how they made it happen.
Spoiler alert: It wasn’t about winning the lotto or receiving a large rise. It was about a smart plan, lots of small wins, and sticking to the basics.
Step 1: Facing the Numbers (Even When It’s Scary)
The first big move? Sitting down and looking at the full picture.
This borrower listed every debt — credit cards, personal loans, and even a few lingering medical bills.
They wrote down:
- How much was owed
- Minimum monthly payments
- Interest rates
It wasn’t fun seeing it all on paper, but it created a clear starting point.
Lesson: You can’t fix what you don’t face.
Step 2: Choosing a Payoff Strategy
Next, they picked the avalanche method:
This means paying off debts with the highest interest rates first, while still making minimum payments on the rest. It helped save money on interest and maintained the momentum.
They also set a huge goal: “I want to be debt-free in 12 months.”
With that goal in mind, they calculated how much they needed to pay each month — around $1,700 — and broke it down into weekly targets to stay motivated.
Step 3: Slashing Expenses (Without Hating Life)
Rather than completely cutting out fun, they made smart trade-offs:
- Cooking at home instead of eating out
- Streaming one subscription instead of five
- Buying second-hand clothes (and finding some great deals!)
They also created a “fun money” budget — a small monthly amount just for guilt-free splurges.
Having a little freedom made it easier to stick to the plan without burning out.
Step 4: Finding Extra Cash
Paying $1,700 a month required more than just budgeting. They also boosted their income:
- Picked up a part-time remote job on weekends
- Sold old gadgets, clothes, and furniture online
- Cashed in unused gift cards
Every extra dollar went straight toward debt. Even small wins, like a $50 sale on Facebook Marketplace, added up faster than expected.
Step 5: Staying Motivated and Tracking Progress
One smart trick they used: visual progress trackers.
They created a simple chart on their wall and colored it in every time they paid off another $500.
Seeing the debt shrink made the goal feel real and achievable.
Plus, they celebrated every milestone (in inexpensive ways), like a picnic at the park or a DIY movie night.
The Final Result
Twelve months later, the borrower was debt-free — no credit card balances, no loan payments, and no financial stress hanging overhead.
More than just numbers, it changed their whole life:
- They built better money habits
- They had extra room in their budget to save and invest
- They felt in control of their future
Their biggest takeaway?
“The hardest part is starting. Once you’ve committed, every small step brings you closer.“
Final Thoughts
Paying off $20,000 in a year wasn’t easy, but it was absolutely possible with a plan, persistence, and a little creativity.
If you’re staring down your own debt, take a deep breath — and know that with small steps, smart choices, and steady action, you can write your own success story too.
Frequently Asked Questions (FAQs)
1. Is it really possible to pay off $20,000 in a year on a normal income?
Yes, it’s possible — but it usually requires a mix of reducing expenses, increasing income, and sticking to a strict plan. The key is consistency and finding ways to speed up payments whenever possible.
2. Which debt payoff strategy works best: snowball or avalanche method?
Both work, but it depends on your style. The snowball method gives emotional wins faster (by paying off smaller debts first), while the avalanche method saves more money by attacking high-interest debts first. This borrower used the avalanche method to save on interest.
3. How can I stay motivated during a long debt payoff journey?
Setting mini-goals, tracking your progress visually, and celebrating small milestones can keep you motivated. Also, reminding yourself of your “why” — financial freedom, less stress, more opportunities — makes a huge difference.
4. What if I can’t find extra money to put toward debt?
If budgeting alone isn’t enough, consider side gigs, selling unused items, negotiating bills, or cutting down on big expenses like rent or transportation. Even small extra amounts, when added consistently, can speed up your progress.