In this video, I’m talking about how I paid off over $120,000 in debt. Although this happened over 10 years ago, many of the principles are timeless and will still work today💰

In this short video, I’ll go over:

✅ How I used Dave Ramsey’s recommendations to meet my goal

✅ How to use practical and spiritual principles to meet your financial goals

✅ Tips on organizing your money

Check out my video on Youtube for a full breakdown.

How I Paid Off $120,000 in Debt

Paying off $120,000 in debt may sound like a monumental task, but through a mix of practical steps and spiritual principles, I was able to completely eliminate that burden. I hope that by sharing my story, you’ll discover insights and strategies to help you on your own debt-free journey. Below, I’ll break it all down into actionable steps with a blend of faith and financial wisdom.

Starting the Journey

My story begins nearly 20 years ago. I was a newly married stay-at-home mom, homeschooling my children. While this lifestyle was meaningful, it put immense pressure on our finances. We had considerable debt, garnishments on our income, and a modest household budget supported by a single salary. The situation looked grim, but I knew we needed to make a change to secure a better future for our family.

At the time, my church played an influential role. The pastor frequently spoke about the importance of financial stability and getting out of debt—not only to create a better life for ourselves but to serve a higher purpose and have the financial wherewithal to help others. Inspired by this wisdom and supported by spiritual teachings, we decided to tackle this challenge head-on.

The Practical Steps

The practical steps we took were guided largely by financial principles from Dave Ramsey’s teachings, which I learned about through his radio program and in his book, The Total Money Makeover. These steps included:

Creating a Budget

We built a detailed budget, ensuring every dollar had a purpose. This helped us track our expenses and allocate money toward debt reduction. A budget is simply a spending plan that puts you in control of your finances, and it was instrumental for us. Even if you’re new to managing money, tools like spreadsheets or paper-based planning can work wonders.

The Debt Snowball Method

We began using the “debt snowball method.” This method involves:

1. Listing all debts from smallest to largest.
2. Paying off the smallest debt first while making minimum payments on others.
3. Rolling those payments into the next debt until momentum builds.

It wasn’t long before we were making significant progress, with payments growing to $1,000–$2,000 per month. Over time, this strategy allowed us to completely erase our remaining balances.

Cutting Expenses and Increasing Income

We made sacrifices by cutting back on unnecessary expenses and focusing only on essentials. At the same time, I started working from home while homeschooling, which helped bring in extra income to accelerate our progress. Adding extra sources of income to expedite debt repayment is key!

The Spiritual Principles

Equally important on our debt-free path were the spiritual principles that nurtured my mindset and strengthened my faith throughout the process:

Declaring and Speaking Debt Freedom

One spiritual step I relied on was the power of declarations. Inspired by scriptures like Mark 11:23–24, I would repeatedly decree that I was debt-free. Speaking life over my finances through affirmations like “Wealth and riches are in my house,” from Psalm 112 created a positive and faith-based mindset.

Applying Biblical Lessons

I also drew inspiration from scriptures such as 2 Kings 4, which tells the story of a widow who was instructed by the prophet Elisha to sell oil to pay her debts. This passage reminded me that solutions could come through small steps rather than waiting for one big financial breakthrough. By handling payments one at a time, I began to see steady progress.

Another key example came from Matthew 17, where Peter was instructed to find a coin in a fish’s mouth to pay taxes. This showed me that God could provide very specific instructions in unexpected ways, and it strengthened my faith during challenging moments.

Combining Practicality with Faith

Faith and action went hand in hand throughout my debt-free story. Reading scripture, trusting God’s provision, and acting on financial wisdom created a powerful combination. These principles not only paid off debt but also opened the door to a brighter financial future, including opportunities in real estate investment.

Take the First Step

If you’re ready to start your debt-free journey, I encourage you to take action today. Whether it’s creating a budget, speaking affirmations over your finances, or simply believing that debt freedom is possible, you can start small and build momentum.

Download my free eBook, “Get Out of Debt Now: A Free Guide on Accelerating Debt Elimination,” to take your first step toward financial freedom. With practical tips and spiritual insights, this guide will help you create a plan to eliminate debt and build the life you’ve always envisioned.

Together, with determination and faith, you can achieve financial freedom!