Lessons From $107,000 in Debt

When my husband and I were drowning in over $107,000 of consumer debt, I thought sheer determination would carry us through. I had a degree in economics, spreadsheets, and all the “head knowledge.” But what I didn’t have? The wisdom to avoid some very costly mistakes.

It took us six long years to finally reach debt freedom. And while I wouldn’t trade the lessons learned, I often wish I could hop in a time machine and save myself the stress, tears, and wasted time.

Today, I want to share the 3 biggest mistakes we made while paying off debt—and more importantly, what you can do differently so your journey is faster, smoother, and less overwhelming.

If you’re just starting your debt-free journey, these tips will help you avoid the pitfalls I fell into and give you the tools to stay consistent without burning out.

🎧 Prefer to listen? Hit play and dive in while folding laundry or commuting.

Mistake #1: Skipping the Starter Emergency Fund

Like most people eager to get rid of debt, I thought, Why waste time saving when I could be paying off debt faster?

So, we jumped right in—without a safety net. And that’s how we ended up putting utility bills, car repairs, and even our groceries on credit cards when emergencies hit.

The truth is: life doesn’t stop for your debt payoff plan. Cars break down. Kids get sick. The house leaks. Without savings, every little hiccup becomes a setback.

Why an Emergency Fund Matters

An emergency fund gives you breathing room and keeps you from sliding backward into debt. Even a small $1,000 starter emergency fund can:

• Cover minor car or house repairs

• Prevent credit card swipes during emergencies

• Give you peace of mind while aggressively paying off debt

Think of it as your financial buffer. It’s not there to make you rich—it’s there to keep you sane.

How to Start Your Emergency Fund

1. Set a target of $1,000 (or one month of expenses if that feels safer).

2. Sell items around your home—unused furniture, clothes, or electronics.

3. Cut non-essential expenses temporarily (eating out, subscriptions, extras).

4. Direct all found money—bonuses, tax refunds, side hustle income—into this fund until it’s fully stocked.

💡 Pro tip: Keep this money in a separate savings account so you’re not tempted to “borrow” from it for everyday spending.

Mistake #2: Creating a Budget That Was Too Strict

Here’s where my all-or-nothing personality backfired.

We built a budget that looked perfect on paper—but it allowed zero room for joy. No coffee dates. No family outings. No hobbies. Just bills, groceries, and debt payments.

You can probably guess how long that lasted. Spoiler: not very.

The Problem With “No Fun” Budgets

When you cut out every source of enjoyment, your budget feels like punishment. Eventually, you rebel against your own rules. You overspend. You give up. You slide back into old habits.

The result? Budget burnout.

The Fix: Budget Every Dollar (Including Fun Money)

Instead of cutting everything, I now teach my coaching clients to:

• Budget every dollar coming into your household

• Include a fun money category—yes, even during debt payoff

• Give each spouse/partner their own no-judgment allowance

This doesn’t mean hundreds of dollars for vacations or luxury items. It can be as simple as $25 a month for coffee, books, or a night out. The point is to have money that’s yours to enjoy—without guilt.

By allowing a little fun, you’ll actually stick to your budget long-term. And consistency is what makes debt freedom possible.

Want a budgeting plan that actually sticks? Join my free workshop: 15 Minutes to Money Clarity.

Mistake #3: Trying to Do It Alone

When we started our journey, I didn’t even know financial coaches existed. And community? Forget it. We were doing this debt-free thing completely solo.

Yes, I had my husband—but we weren’t always on the same page. That led to fights, frustration, and discouragement. Looking back, I know that outside support and accountability would have sped up our journey by years.

Why Accountability Matters

• Encouragement when the process gets hard

• Perspective when you feel stuck

• Celebration of small wins that keep you motivated

• Practical strategies from people who’ve been there

Without accountability, it’s easy to slip into shame spirals or give up when life gets tough. With accountability, you’re reminded that it’s about progress, not perfection.

How to Find Support on Your Debt-Free Journey

• Join a financial coaching program (like my Alliance Coaching Program).

• Connect with a community of like-minded families paying off debt.

• Find an accountability partner—a friend, spouse, or fellow debt rebel.

The bottom line: Don’t do this alone. Having someone in your corner makes all the difference.

The 3 Keys to Paying Off Debt Without Regret

Looking back, the biggest lessons I learned are simple but powerful:

1. Start with a $1,000 emergency fund. It’s your safety net.

2. Create a realistic budget with fun money. Avoid burnout.

3. Get accountability and support. Don’t go it alone.

If you can nail these three areas, you’ll avoid the mistakes I made and reach debt freedom faster than you thought possible.

Your Next Step: Get 15 Minutes to Money Clarity

If you’re nodding your head right now but still wondering, Where do I even start?—I’ve got you covered.

I created a free workshop called 15 Minutes to Money Clarity, designed to help busy parents finally feel organized with their budget.

In just 30 minutes, you’ll:

✔️ Build a simple action plan for your money
✔️ Learn how to create a budget you’ll actually follow
✔️ Feel confident about your next financial step

👉 Register here: JewlzTheBudgetNerd.com/clarity

You don’t need a perfect plan. You just need the right focus at the right time. Let me help you get there—without the mistakes I made.

Final Thoughts

Paying off debt isn’t just about numbers—it’s about mindset, strategy, and community. Yes, it takes discipline. Yes, it takes sacrifice. But it doesn’t have to be miserable, and you don’t have to do it alone.

Remember:

• Protect yourself with an emergency fund.

• Build a budget that makes room for joy.

• Surround yourself with accountability and support.

Do that, and you’ll not only reach debt freedom faster—you’ll enjoy the journey along the way.

You’ve got this, Rebel. 💪