I Paid Off $107K in Debt While Still Enjoying Life. Here's How

Repaying $107,000 worth of debt -- not including our mortgage -- took my husband and me seven long years. Our journey was less of a straight path than a meandering journey that included some wins, do-overs and a lot of lessons learned.

We had about $45,000 in debt the first time we decided to get our finances in order. The total mainly included student loans, credit cards and car loans. But over the years, our resolve to stay focused faltered when we faced a costly tax mistake. We also detoured to pursue business opportunities. And I succumbed to frugal fatigue, which has derailed many people’s efforts to improve their finances

I had thought one of the easiest ways to free up money to pay off debt was trimming my entertainment budget. Eliminating nonessential expenses such as travel, movie tickets or group outings can quickly add up to substantial savings. But I learned that if I was going to remain focused on our goal, I had to figure out how to enjoy life while paying off debt, so I didn’t run out of steam and sabotage all my hard work.

What is frugal fatigue?

Whether you’re working to pay off debt or put more money into your savings, it’s important to pay attention to how the process affects you mentally and emotionally.  

Dr. Jasmonea Joyriel, a licensed clinical psychologist, defines frugal fatigue as “burning out from your money-saving or wealth-building efforts.” Putting all of your energy and resources toward a distant goal can take away from your current needs if you’re not careful, she said. This can become a burden that weighs you down and makes it harder to stick to your goal.

I can relate to this struggle. The extended period of belt-tightening required to make a dent in our debt caused us to rebel against our stated goals. In the beginning, our payoff progress moved at a snail’s pace. The thought of eliminating all fun for years to come made us less willing to make the hard choices and stay focused. So when our car needed expensive repairs, we treated ourselves to a new car lease, making the excuse that our decision would help avoid future mechanical breakdowns.

In hindsight, the lease increased our overall debt and reduced the disposable income we had to attack debt aggressively. After the new car smell wore off, I felt deflated because we’d actually moved farther away from our goal. 

I realized that to avoid another setback, I needed to allow myself to enjoy life a little so I didn’t burn out on my goal. Once I figured out how to incorporate paying off debt into a lifestyle that I enjoyed, it became less of a chore and something I learned to live with long-term.

How I enjoyed life while paying off debt

Striking the proper balance between staying focused on debt payoff and enjoying life is a mix of art and science, said Jaime Eckels, a certified financial planner with Plante Moran Financial Advisors.

“If you set a goal, for example, to have debt paid off in five years, build [the fun stuff] into your plan. Maybe that means staycations, game nights with friends or potluck dinners so you can still enjoy life,” Eckels added.

Here are the steps I took to keep my spirits up while paying off debt. There are plenty of ways you can incorporate joy into your debt payoff plan, but these could help you get started.

✔️ Finding free or low-cost activities

Many cities and municipalities offer a range of free or low-cost activities, especially in the summer. I’ve taken free dance classes in the park, enjoyed free concerts during a summer festival and seen a few summer movies at the lake. 

Check out the calendar of events for your local or neighboring city to find details on events. Universities also offer plenty of interesting speakers and activities that are often free and open to the public but may not be highly publicized. 

✔️ Taking the summers off

I love to travel, but expensive trips didn’t mesh with our debt payoff goals. To stay motivated, I allowed myself to take a hiatus from aggressive debt payments to fund mini trips in the summers. 

These excursions were often road trips to visit friends or family members. My husband’s family lives in Maryland near Washington, D.C. A metro ride into the city included visits to as many free museums as I could stand. Visiting my parents in South Florida meant we didn’t have to pay for a hotel or rental car to spend our days at the beach. 

Extending our overall repayment schedule was a small price to pay for these trips, which provided a welcome break and allowed us to stay motivated to reach our goal. 

✔️ Learning a new skill

YouTube University is a great place to pick up a new skill to keep you engaged while paying off debt. Using what I learned from free online resources, I started a blog and podcast about my debt payoff journey. Documenting my progress was a great way to stay focused. During long stretches without exciting updates, I would review posts that celebrated reaching interim milestones and interview guests who’d achieved debt freedom to keep myself motivated. 

✔️ Visiting my local library

The library was a valuable resource for me during this period. Of course, I saved money on personal finance books -- I read plenty while improving my financial literacy skills. But my public library also hosts interesting speakers and panel discussions, as well as offering free passes to local museums.

✔️ Getting outside

Spending time outdoors is an excellent way to enjoy life without straining your budget. A simple walk has both physical and mental health benefits that can help you relieve stress and boost your mood. I liked to visit the lake near my home, ride my bike and meet a friend for a game of tennis at a public park. All of these activities added joy to my life without the need to spend a dime.