The start of a new year always brings a sense of renewal, and for me, 2025 is all about restarting my debt-free journey. Today, I face the reality of my finances head-on, taking inventory of my debt, and making a solid plan to tackle it.
Facing My Debt Head-On
If you’ve been following my journey, you know I’ve paid off debt before. Credit cards, personal loans, car, collections, etc just to name a few. However, after purchasing a home and dealing with other financial obligations, I found myself in a significant amount of debt again. This time, I’m determined to get back on track.
I know that I have:
- A mortgage
- Student loans
- Credit cards
- A collection account that I am currently making monthly payments on
Even though I have a rough idea of what I owe, I haven’t looked at my credit report or logged into my accounts in a while. Honestly, the thought of seeing those numbers makes me anxious, but I know that the first step to financial freedom is awareness.
My Current Debt Breakdown
Now, let’s get into the numbers. Here’s exactly what I owe:
Mortgage
- $273,161.83 remaining on my home loan
Student Loans
- $40,240
Credit Card Debt
I have multiple credit cards with balances:
- Navy Federal Credit Union: $9571.36
- Discover: $2,670.05
- Capital One Spark (business credit card): $944.18
- Capital One Quicksilver: $926.12
- Capital One Savor: $2,995.50 (used for my last apartment payment while transitioning into my house)
Collection Account
- I had a collection account over $2,000 that needed to be addressed before purchasing my home. Instead of paying it off in full, I opted for a payment plan, which I am currently managing. My current balance on this collection account is $2,508.23.
My Debt-Free Plan for 2025
Facing these numbers is tough, but I’m excited to create a plan and start making progress. Here’s my approach:
- List all my debts – Done! Writing everything down makes it real and gives me a clear picture of where I stand.
- Prioritize payments – I’ll focus on tackling my credit card debt first since it has the highest interest rates.
- Budget wisely – I’ll create a strict but realistic budget to maximize debt payments while still covering my essentials.
- Increase my income – Through my content creation, side hustles, and digital product sales, I’ll work on bringing in extra money to accelerate debt payments.
- Stay accountable – I’ll be sharing my journey here and on my YouTube channel to keep myself motivated and hopefully inspire others to do the same.
Restarting my debt-free journey isn’t easy, but I know it’s worth it. If I’ve paid off debt before, I can do it again. The key is consistency, discipline, and a solid plan. If you’re on a similar journey, remember—you are not alone! Let’s make 2025 the year we take control of our finances and build the future we deserve.
Are you on a debt-free journey? Share your progress in the comments below or connect with me on YouTube and Instagram!
Stay tuned for more budgeting tips, financial updates, and real-life money management strategies. Let’s get this debt paid off together!