Hello! Today I’m sharing an inspiring debt payoff story from a reader, Ashlee Binderim. Here’s how she and her husband paid off $162,000 in debt. Enjoy!
When you get married, you expect to ride off into the sunset and live happily ever after, right?
That honeymoon phase didn’t last long for us. It came to a screeching halt once we realized how serious our financial situation was. 
To set the scene: we were in our early twenties, still full-time students and working part-time jobs when we said “I do.” We were barely getting by and money was tight.
We knew we had debt going into the marriage, but we didn’t fully grasp the long-term impact. My husband’s parents earned too much to qualify him for need-based financial aid but not enough to cover college, so he took out $150,000 in student loans. While in school his loans accrued $15,000 in interest, bringing his total to $175,000.
I paid my way through college with financial aid and some scholarships, but still needed loans. I took out $11,000 in private loans and $20,000 in federal loans. I paid back about $10,000 while in school, leaving $21,000 that I carried into our marriage. We also bought a new car for $29,000. That added up to a staggering $225,000 in debt.
We were barely of legal drinking age and already facing $225,000 in debt. With a starting combined income under $3,100 a month, paying down that mountain of debt felt like chipping away at Everest with a pickaxe.
The loans held us back in nearly every area of life. We were already making payments comparable to a mortgage, so homeownership was out of reach. Investing and other long-term financial moves took a backseat. We had to say “no” to almost everything we wanted, and during our first year of marriage we struggled just to afford food.
So how did we pay off $162,000 in six years? Below is a year-by-year summary of our income and roughly how much we put toward debt each year.
How we paid off $162,000 in debt in 6 years
2016 – I made about $25,000 and my husband made $35,000, giving us roughly $3,100 a month combined. Our rent for a small one-bedroom was $1,050, leaving $2,050 for necessities. We didn’t have student loan payments yet, so we funneled every extra dollar toward debt. That year we paid off $13,800.
2017 – I graduated and took a full-time job making $51,000. My husband worked part-time and attended college full-time, earning about $35,000. Our take-home was about $5,100 per month. We moved to a converted hayloft where we did property maintenance in exchange for reduced rent and utilities—$760 per month.
That year we briefly paused financial goals while my husband needed many doctor visits to diagnose a rare vision-related condition. Thankfully our insurance covered most costs. In 2017 we put $22,100 toward debt and saved to prepare for refinancing my husband’s loans.
2018 – My husband graduated and accepted a full-time project manager role with a $71,000 starting salary. Combined with my $51,000, our gross income was $122,000 and our take-home roughly $7,500 monthly. We refinanced my husband’s loans into his name at 6.5% interest on $175,000. That produced a $1,315 monthly payment where much went toward interest. The loan servicer’s schedule would have kept us in debt for 15 years and resulted in over $135,000 in interest if we hadn’t accelerated payments.
In 2018 we put an extra $24,229 toward the loans on top of monthly payments, totaling $40,009 applied to the debt that year (keeping in mind a large portion of early payments covered interest).
2019 – This was the year we got serious. Both of us received raises and our combined income rose to $139,000 with about $7,900 take-home per month. We cut spending on insurances and subscriptions and made one of the toughest choices: we sold our brand-new car back to the dealership. Within hours we paid off $21,393 of debt and bought another used car for $1,500. It was humbling but it accelerated our progress dramatically.
We also faced another health-related setback requiring specialized treatment not fully covered by insurance. Despite this, we made huge progress: in 2019 we paid down $57,820, much of which included proceeds from selling the car back.
During this time I discovered a passion for helping others with money. I pursued a financial coaching certificate and began building a coaching business. As our credit improved, we refinanced our loans again, lowering interest to 4% while keeping payments the same. That cut our interest from about $600 a month to $250—a substantial difference.
2020 – I left my job in February to work full-time on the coaching business. The global events of 2020 hit our income, and I provided financial help to people for free during the crisis. Although we didn’t pay as much as planned, by November we were under $100,000 in total debt for the first time, making the goal feel achievable.
In 2020 we brought in $106,000 with about $6,000 take-home monthly. Stimulus checks and a company car for my husband reduced our expenses. That year we managed to apply around $33,488 toward debt during a difficult period for many families.
2021 – Our income was about $112,000 with $6,400 take-home monthly. As we approached the finish line, we sold a travel trailer, a small boat, an extra vehicle, and many household items. I also started selling fine art paintings. We refinanced student loans again to an all-time low of 2.25%, saving roughly $1,500 a year that now goes directly to principal.
By the end of 2021 we expected to have about $42,000 remaining and aimed to be debt-free by September 2022. Throughout this journey we encountered many obstacles and slow periods, but each month we paid down debt we felt lighter and more secure.
Three key strategies that helped us succeed
1. Get on the same page
If you’re in a committed relationship, aligning on finances is critical. If partners pull in different directions, progress stalls. When you agree to work together toward the same goals, you gain momentum and accountability. We recommend sitting down at the start of each month to create and review a budget—post it somewhere visible so it becomes a constant reminder.
2. Set priorities
You can’t do everything in a single year. Choose your top three financial priorities for the year and focus only on those. Trying to max out retirement, take multiple vacations, save aggressively for a house, and pay large amounts of debt all at once is unrealistic and overwhelming. By concentrating on a few key goals, you’ll say “no” to distractions and stay on track.
3. Still have fun
Understanding human psychology around money is important—our brains prioritize safety and resist change. Without small rewards, you’re more likely to give in to comfort behaviors like mindless scrolling or impulse purchases. Set aside a modest fun budget so you don’t feel deprived. This small allowance helps your mind adapt to new habits and makes sustaining long-term goals easier. Remember: paying off large debts is a marathon, not a sprint. Patience and delayed gratification teach valuable lessons and help you find joy in small wins.
Because we paid off over $162,000, we now know we can achieve any financial goal together. We became a stronger team through the process.
Here are several practical places we saved money that might help you:
- Car insurance — We regularly shopped for better quotes and saved about $700 a year on average by switching providers when rates rose.
- Phone bill — We downgraded from a major carrier to a more affordable provider, cutting $120 per month; now one line costs about $31 monthly.
- Sold items — Over six years we sold four cars, a travel trailer, a small boat, furniture, artwork, and more.
- Creative housing — We found nontraditional, lower-cost housing arrangements like a work-trade for reduced rent and other creative solutions.
- Refinanced student loans — We refinanced multiple times to take advantage of lower interest rates, improving how much of each payment goes to principal.
Refinancing drastically changed our payment breakdown. When we first refinanced at 6.5%, roughly $600 a month went only to interest. Later refinances saved us hundreds each month and accelerated our payoff.
Our payoff journey wasn’t linear. There were bumps, setbacks, and unexpected expenses. Still, we never earned more than $140,000 a year and managed to pay off the debt in half the time many would expect. It wasn’t easy, but it was possible because we aligned, prioritized, and allowed ourselves small rewards along the way.
We traveled to Texas, Montana, Oregon, Utah, Colorado, Nevada, Washington, and California while paying off debt. I hope our story inspires you and shows that significant progress is possible with consistency and teamwork.
Author bio: Ashlee and her husband began married life with over $225,000 in debt while both attending college and working part time. Over several years they learned to work together, reduce expenses, and prioritize aggressively. To date they have paid off $162,000. Ashlee is now a certified financial coach helping couples get on the same page and build financial security. She shares updates and resources through her platforms.
Do you have debt? Are you trying to pay it off?