Last updated Mar. 24, 2025 by Charles Zemub
Debt can feel overwhelming, like a heavy weight on your shoulders, making it hard to move forward. For Amanda and Josh Turner, a couple from Denver, Colorado, this was their reality. Burdened with $27,000 in credit card debt, they decided to take control of their finances, devise a strategy, and change their financial future forever. Through determination, strategic planning, and teamwork, they were able to pay off all their debt in just 18 months. Here’s how they did it:
The Starting Point: Recognizing the Problem
Amanda and Josh, both in their early 30s, were living paycheck to paycheck. Despite their decent income levels, they found themselves constantly stressed about their mounting credit card bills. Realizing that they were paying high-interest rates on their debts each month while making little progress toward the principal amount, they had a wake-up call. One day, after a particularly anxiety-inducing review of their finances, Amanda declared, "We need to make a change. This is not how we want to live our lives." Josh agreed, and they committed to tackling their debt problem head-on.
Taking Inventory: Knowing What They Owed
Their first step was to take a detailed inventory of their financial situation. The couple sat down one evening and collected all their financial documents. They made a list of all their credit card debts, including interest rates and monthly minimum payments. They discovered that they had debts on four different cards, ranging from $2,000 to $10,000, with interest rates as high as 22%. This clear overview was a shocking but motivating step that helped them start their debt repayment journey with a structured plan.
Creating a Realistic Budget
Amanda and Josh realized that they needed to have a better understanding of where their money was going each month. They began tracking their expenses by categorizing every expenditure into essentials and non-essentials. This process surprised them, as they found out they were spending more on dining out, subscriptions, and impulse purchases than they had initially realized. By creating a realistic budget, they identified areas where they could cut back and redirect those funds toward debt repayment. This exercise of budgeting was instrumental in setting a solid financial foundation.
Exploring Debt Repayment Strategies
With a clear picture of their financial situation and a budget in place, Amanda and Josh researched various debt repayment strategies. They came across two popular methods: the snowball method and the avalanche method. After careful consideration, they chose the avalanche method, focusing on paying off the card with the highest interest rate first while maintaining the minimum payments on the others. This approach made sense for them as it minimized the total interest paid over time, freeing up more money for principal payments.
Increasing Income: Side Hustles and Saving More
To accelerate their debt repayment process, Amanda and Josh knew they needed to increase their income. Amanda, a graphic designer, started freelancing on the side, offering her services on platforms like Fiverr and Upwork. Josh, a software engineer, began tutoring students in coding during weekends. These side gigs generated an extra $1,000 per month, which they fully dedicated to their debt repayment plan. Additionally, they adopted cost-saving measures such as cooking more meals at home, buying in bulk, and canceling unnecessary subscriptions.
Staying Committed: Monthly Check-Ins and Adjustments
Paying off $27,000 in credit card debt is no small feat, and Amanda and Josh understood the importance of staying committed to their goal. They developed a routine of monthly financial check-ins, where they would review their progress, celebrate small victories, and adjust their strategies if needed. During these sessions, they often indulged in debt-free activities, like hiking or visiting a local park, as a reminder of the fulfilling life they were building without financial burdens. This openness and regular communication were essential in keeping their motivation alive throughout the journey.
Achieving Financial Freedom: A Debt-Free Life
After 18 months of diligence, sacrifice, and teamwork, Amanda and Josh achieved something many people only dream of: they paid off all $27,000 of their credit card debt. The relief and pride they felt were immeasurable. They acknowledged that their journey wasn’t just about the money but about building stronger financial habits and a healthier relationship with spending. They decided to continue applying the budgeting and saving strategies they had learned to further secure their financial future.
Sharing Their Story to Inspire Others
Now debt-free, Amanda and Josh have made it their mission to help others take control of their finances. They started a blog called "Debt-Free Dreams" where they share their story, tips, and strategies with those looking to overcome their own financial challenges. Their story has inspired hundreds of followers, proving that with commitment and the right plan, it’s possible to break free from the shackles of debt.
✔ Short Answer
Amanda and Josh Turner successfully paid off $27,000 in credit card debt through strategic planning and relentless effort. They started by taking a thorough inventory of their debts and created a realistic budget by tracking their spending. Choosing the avalanche method, they focused on tackling the highest-interest debt first. By leveraging side hustles, cutting unnecessary expenses, and staying disciplined with monthly financial check-ins, they managed to pay off their debt in 18 months. Their journey underscores the power of teamwork, strategic thinking, and persistence in overcoming financial challenges and achieving financial freedom.
FAQs
How long did it take Amanda and Josh to pay off their $27,000 debt?
It took Amanda and Josh 18 months to pay off their $27,000 in credit card debt. Through disciplined budgeting, strategic debt repayment methods, and increasing their income via side hustles, they were able to eliminate their debt relatively quickly.
What strategies did they use to pay off their debt?
Amanda and Josh used the avalanche method to pay off their debt. They focused on eliminating the credit card with the highest interest rate first, which helped reduce the amount of interest paid over time. Additionally, they increased their income with side gigs and cut back on non-essential spending.
What role did side hustles play in their debt repayment journey?
Side hustles played a crucial role in Amanda and Josh’s debt repayment strategy. Amanda took on freelance graphic design projects, while Josh tutored coding students. These extra income streams allowed them to contribute an additional $1,000 monthly toward debt repayment, significantly speeding up the process.
How did they maintain motivation throughout their financial journey?
Amanda and Josh maintained motivation by conducting regular monthly financial check-ins where they celebrated small victories and adjusted their strategies. They involved themselves in debt-free activities and focused on the long-term benefits of a debt-free life, which helped sustain their determination.
What is the avalanche method and why did they choose it?
The avalanche method involves paying off debts starting with the one that has the highest interest rate, while making minimum payments on the others. Amanda and Josh chose this method to reduce the overall interest they would pay, allowing more funds to be directed to the principal amounts and accelerating their debt payoff timeline.
