I never thought I’d write these words. My name is Lyra Vonn, and I’m a wife and mom to two incredible kids. Just over a year and a half ago, my husband and I were buried under $40,000 of debt. Student loans, credit cards, and a car payment all seemed to loom over us like dark clouds. It felt impossible to catch up, much less get ahead.

Fast forward 18 months, and I’m thrilled to say we’re debt-free. The path wasn’t easy, but it was worth every sacrifice, every late-night budgeting session, and every tough choice along the way. If you’re reading this, I want you to know that it’s possible. Here’s exactly how we did it and how you can, too.

Taking the First Step

We didn’t start aggressively attacking our debt until we were faced with a wake-up call. It was a random Tuesday evening when I logged into our online banking to check our balances. Between holiday shopping and unexpected car repairs, we were dangerously close to maxing out our credit cards. My stomach sank.

That same night, my husband and I sat at the kitchen table after the kids were asleep. We laid it all out in black and white. Our total debt was $40,000—not including our mortgage. We were overwhelmed, embarrassed even, but we also knew we couldn’t keep living this way. It was time to make a change.

Step 1: Creating a Budget That Worked for Us

The first thing we did was build a budget. And when I say “budget,” I don’t mean one of those unattainable plans that you give up on after two weeks. We needed something realistic yet focused on our goals.

Here’s how we approached it:

  • Tracked Every Dollar: For the first month, we wrote down every single expense. By knowing exactly where our money was going, we found areas to cut back.
  • Prioritized the Basics: We focused on the essentials like housing, groceries, and transportation. Everything else was scrutinized.
  • Gave Every Dollar a Purpose: We started using the zero-based budgeting method. Essentially, every dollar we earned had a "job," whether it was covering bills, paying off debt, or going into savings.

We adapted as needed, but sticking to this budget became the cornerstone of our debt-free plan.

Tip for You:

Use budgeting apps or printable templates to simplify the process. We used EveryDollar, which made it easy to track our progress.

Step 2: Cutting Expenses

This was, hands down, the hardest part. We had to face some uncomfortable truths about our spending habits. Weekly takeout? Gone. Shopping for clothes just because I “deserved it”? Out the window. Annual vacations? Put on hold.

Here’s what made the biggest difference:

  • Meal Planning: Our grocery bill was eating up a chunk of our budget. By meal planning and sticking to a grocery list, we cut our food expenses by 40%.
  • Canceling Subscriptions: We ditched streaming services, monthly box subscriptions, and even paused our gym memberships.
  • Downsizing "Extras": We negotiated our internet and cellphone bills, shopped for new car insurance, and stopped paying for extras like premium cable.

It was tough, but we didn’t feel deprived. When you have a clear goal, you find joy in watching your progress instead of your spending.

Step 3: Finding Ways to Increase Income

While cutting back helped, we knew slashing expenses alone wouldn’t be enough to pay down $40,000. We needed to bring in more money to make a real dent.

Here’s what worked for us:

  • Side Hustles: My husband started driving for a rideshare service on weekends, and I picked up freelance writing gigs when the kids were asleep.
  • Selling Unused Items: We emptied out our garage, toy bins, and closets and sold items online. It’s amazing how quickly the little things add up.
  • Asking for Raises: My husband negotiated a raise at work, and I took on extra responsibilities at my job to earn a promotion.

We poured every extra dollar into our debt payments. At first, it didn’t feel like it was making much of a difference, but over time, the numbers started to shift.

Step 4: The Debt Snowball Method

Once we had both our budget and extra income streams in place, we committed to the debt snowball method. This approach involves:

  1. Listing your debts from smallest to largest (by balance, not interest rate).
  2. Focusing all extra payments on the smallest debt while making minimum payments on the others.
  3. Once the smallest debt is paid off, rolling those payments into the next debt on the list.

The first debt we tackled was a $1,200 credit card balance. Knocking it out felt like a huge victory and gave us the momentum to keep going. By the time we got to the bigger debts, we were motivated and confident we could handle anything.

Step 5: Staying Motivated

Staying motivated for a full 18 months wasn’t easy. Sometimes, we asked whether it was worth it. But here’s how we stayed on track:

  • Celebrating Milestones: Every time we paid off a debt, we’d have a small family celebration. Even just a picnic at the park with homemade sandwiches felt special.
  • Visual Progress: We had a chart on the fridge that tracked our debt payments. Watching the number shrink each month was incredibly motivating.
  • Reminding Ourselves Why: For us, being debt-free meant financial stability for our kids and the ability to save for the future. Keeping that “why” front and center was key.

Lessons Learned

Looking back, there are a few things I’d share with anyone starting their debt-free journey:

  • Don’t Wait for the Perfect Time: Life will always have obstacles. Start where you are and adjust as needed.
  • Communicate with Your Partner: My husband and I didn’t always agree on what to cut, but honest conversations kept us both on the same page.
  • Progress, Not Perfection: Some months, we didn’t pay as much as we hoped. Instead of giving up, we refocused and kept going.

The Other Side of Debt

Today, our lives are completely different. Not only are we free from the stress of debt, but we’ve also built better habits that will serve us for years to come. We’re saving for emergencies, starting to invest for retirement, and even planning a family vacation for next summer—paid entirely in cash.

If you’re feeling stuck in your debt, I want you to know it is possible. Take that first step, no matter how small. With a plan, discipline, and a little creativity, you can break free.

Actionable Next Steps for You:

  1. Take stock of all your debts to know exactly what you’re working with.
  2. Create a budget that fits your family’s needs and goals.
  3. Look for ways to cut expenses or generate extra income.
  4. Stay consistent and celebrate every win, no matter how small.