The Ultimate Guide to Managing Debt in Your 20s (How I Paid Off $20K in 2 Years)

When I graduated college, I had two things: a shiny diploma... and $20,000 in debt.

Student loans, credit cards, and one questionable couch purchase from IKEA later, I was broke and overwhelmed.

But here’s the good news: two years later, I’m debt-free — and no, I didn’t win the lottery or sell feet pics (not that I didn’t consider it).

Step 1: Face the Ugly Number

The first thing I did was sit down, open a spreadsheet, and list every single debt I had:

$12,000 – Federal Student Loan
$4,500 – Credit Card Debt (thank you, Taco Bell & Target)
$3,500 – Personal Loan from a bank that calls me way too often

I called it my “debt graveyard.” It was painful, but necessary. You can’t fight what you don’t face.

Step 2: Choose Your Payoff Strategy (Snowball vs Avalanche)

I went with the debt avalanche method — paying off the highest interest rate first. It made the most sense mathematically.

But the debt snowball — paying off the smallest debt first — is great if you need quick wins to stay motivated.

Example:

Credit Card @ 22% → Pay first
Student Loan @ 5% → Pay minimum

Key tip: Pick a method and stick with it. Financial FOMO is real but deadly.

Step 3: Make a “Bare Bones” Budget (Then Actually Use It)

I cut back hard — no Starbucks, no random Amazon hauls, no Uber unless I was late-late.

My bare-bones budget looked like this:

Rent: $800
Groceries: $200
Debt payments: $500+
Fun: $50 (I cried a little)

I used the app YNAB (You Need A Budget) — it’s worth every penny.

Step 4: Make More Money (Side Hustle Mode Activated)

Let’s be honest: saving is great, but earning more changed the game for me.

I started:

Freelance writing ($100/article)
Dog sitting on Rover
Selling old tech on Facebook Marketplace

Every extra dollar went straight to debt. I called it the "Kill the Loan Fund."

Step 5: Automate Everything (and Avoid Lifestyle Creep)

I set automatic payments for every loan. No excuses, no missed due dates.

And even when I got a raise, I didn’t upgrade my life. No new phone, no fancy car. I kept living like I was broke — on purpose.

Final Thoughts: Debt Doesn’t Define You, But It Can Drain You

Getting out of debt in your 20s isn’t easy — but it’s 100% doable.

You don’t need to be perfect. You just need to be persistent.

And when you finally make that last payment? There’s no better feeling. I celebrated with cheap champagne and danced like no one was watching. (Except my neighbor. Sorry, Steve.)

Useful Tools I Used:

YNAB (budgeting app)
Credit Karma (track score & balances)
Debt payoff calculator (free online tools)

Hashtags

#DebtFreeJourney #BudgetingTips #FinancialFreedom #PayOffDebt #StudentLoans
#CreditCardDebt #MillennialMoney #AdSenseTopics #USFinanceTips #SideHustleWin

mangkihong

2025년 4월 2일 수요일