Episode: 356 - How Brenda Philhower Paid Off Over $40,000 in Debt
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When Brenda Philhower first joined our Roots community, she was juggling credit cards, bills, and overwhelming financial stress. Fast forward three years, and she and her husband Cliff have paid off nearly $42,000 in debt—on a single income—and finally feel like they're in control of their money.
Brenda’s story is one many of us can relate to: no budget, lots of debt, and plenty of life’s unexpected expenses. But what changed everything for her wasn’t just a spreadsheet or a fancy tool—it was learning how to build better money habits, having support and accountability, and finally believing that financial freedom was possible.
From Chaos to Clarity
Like many of us, Brenda didn’t grow up learning much about money. As she entered adulthood, credit cards became an easy fallback—but they slowly led her deeper into debt. Between birthdays, holidays, and unexpected expenses, the debt piled up fast.
Brenda shared that before joining Debt Free Dad, she and Cliff didn’t use a budget. Overspending—especially on things like food delivery—was common. The emotional weight was real. At one point, they even filed for bankruptcy after a job loss.
But she didn’t give up. She stumbled across our podcast on Facebook, and after trying other programs that felt overwhelming and complicated, she joined Roots.
“When I started getting into it, it was like, wow—this is easy. We just need to change our behaviors and make sure that we keep our debt down.”
The Habits That Made the Difference
One of Brenda’s biggest takeaways? Budgeting.
She now tracks every expense, sticks to a monthly budget, and makes sure every bill is paid on time. That might sound simple—but simple works.
Even more impressive, she and Cliff made the shift from a bi-weekly to a monthly income—something that can throw any budget into chaos. But with discipline and planning, they’ve made it work.
Brenda also highlighted a strategy we love to talk about in Roots: the 24-hour rule. If they’re tempted to buy something—especially a splurge like DoorDash—they ask, “What would Brad do?” and give it a full day. More often than not, they decide not to buy it.
Teamwork and Communication
After 38 years of marriage, Brenda and Cliff learned how to work as a team when it came to their finances. For the first time, they really started talking about money—what they were spending and where it was going. That alignment has been a huge part of their success.
The Emergency Fund That Changed Everything
Unexpected expenses haven’t stopped. In fact, they recently had to replace their air conditioner. But this time, it wasn’t panic—it was preparation. Because they had savings in place, they could pay the bill without turning to credit cards.
“We don’t have to worry about credit cards. It’s just incredible.”
Brenda now keeps their emergency fund in a separate account and gives herself time to transfer money when it’s needed. That small buffer has brought huge peace of mind.
Living Frugally, Intentionally, and Creatively
Brenda’s found smart ways to stretch every dollar. She’s a master yard sale hunter and runs a local group. She finds brand-new craft kits at a fraction of the price and uses them to make heartfelt holiday and birthday gifts. It’s helped them keep costs down while still celebrating the people they love.
Her Advice to Anyone Just Starting Out
When asked what made the biggest difference in their success, Brenda didn’t hesitate:
“The budgeting. It shows you where your money’s going and where you can make changes. And it’s not complicated.”
She added:
“I thought we’d be forever in debt. But now, we’re no longer worried about how we’ll pay the next bill or afford medicine. Just do it—you have nothing to lose and everything to gain.”
Resources Mentioned
The Totally Awesome Debt Freedom Planner https://www.debtfreedad.com/planner
To learn how to take the stress out of your finances so you can breathe again, follow this link: https://www.debtfreedad.com/lwp-masterclass-opt-in-page-podcast
Connect With Brad
Website- https://www.debtfreedad.com
Facebook - https://www.facebook.com/thedebtfreedad
Private Facebook Group - https://www.facebook.com/groups/debtfreedad
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TikTok - https://www.tiktok.com/@debt_free_dad
YouTube - https://www.youtube.com/@bradnelson-debtfreedad2751/featured
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Transcript:
Brad Nelson:
In today's episode, Brenda Philhauer shares how she went from constantly juggling bills, credit cards, and financial stress to paying off over $40,000 in debt and building a solid savings habit. We talk about what finally made things click for her after trying other programs, how the support she found has made such a huge difference, and the simple habits that have helped her feel more in control of her money than she's ever felt before. Stay tuned, guys. You're not gonna wanna miss this conversation.
Announcer:
You're listening to the Debt-Free Dad Podcast with Brad Nelson. Brad and his co-hosts experience the anxiety of living paycheck to paycheck before learning the fundamentals of financial success. They are now on a mission to empower regular people to pay off their debt for good and enjoy happier, less stressful lives. Keep listening for inspirational interviews, tips, tricks, and practical advice to gain financial freedom.
Brad Nelson:
Welcome to today's show. My name is Brad Nelson, founder of Debt Free Dad. I paid off about $45,000 of debt. I've been debt free now for more than 12 years. I've also been fortunate to help thousands of other people save and pay off tens of millions of dollars with the work that we do here at Debt Free Dad. Now, after listening to this episode, if you are ready to take things to the next level, you're ready to break free from living paycheck to paycheck, you want to reduce financial stress, you want to build a savings and finally pay off your debt for good. But Maybe you're like many people out there. You're just not sure where to get started. Well, we've created some incredible free resources here at Deaf Free Dad to help you get there. And I'll be sharing some details about how you get started with those later on in today's show. As I mentioned, I'd like to welcome Brenda to the podcast here. She and her husband, Cliff, have been married for 38 years and have built a life together filled with meaningful moments. They have two daughters, Alicia and Danielle. And at home, they're kept entertained by Bear, their energetic three-year-old puggle. He's Brenda's second puggle, and his playful antics definitely keep everyone on their toes. So hey, Brenda, welcome to the Deaf Free Dad podcast. So glad that you are joining us.
Brenda Philhower:
Well, thank you for having me.
Brad Nelson:
I'm so excited to have you on. You've been in Roots for a little over three years, and you've had a lot of ups and downs, but also a lot of fantastic wins and success. And I can't wait to share what you've been able to do with all of our listeners because I know firsthand it's our Roots members and the people that we've helped that are really motivating people out there that are finding our podcasts and who are wanting to improve their finances. So I just want to really thank you seriously for spending some time with us here and hanging out a little bit.
Brenda Philhower:
You're very welcome. I'm glad to be here. Any way I can help.
Brad Nelson:
Yeah, absolutely. So what I would love to know as we get started is what was your experience with money prior to getting started with Debt Free Dad and even maybe going back as a child and maybe how that kind of related to how you started to manage your finances as an adult? Can we start there?
Brenda Philhower:
Well, as a child, I really didn't know anything about money. My parents took care of that. I was never involved in it. As I got older, got out on my own. I ended up with credit cards, which was my biggest mistake. But I've had issues with we were worried about if we could get groceries, if we could get our medicines because we were so far in debt. I decided to join Debt Free Dad back in December, but I didn't get started until March due to illness that I had had. Yeah. But it's just been amazing what we've been able to accomplish through Debt Free Dads.
Brad Nelson:
Yeah. What would you say? I know you mentioned credit cards, but what was the struggle? Was it impulse of spending? Was it overspending? Was it just having a lack of a plan, not living on a budget? What do you feel like maybe contributed to some of that and some of that stress that you were dealing with back then?
Brenda Philhower:
It was definitely overspending. We didn't even use a budget at all. We extended ourselves with holidays and birthdays because both of my daughters were born in February, even though it was almost 10 years apart. So it was like just after Christmas, we were having birthday parties and just certain things that we were spending on that we shouldn't have.
Brad Nelson:
Yeah. Well, you're living the life that most of us are accustomed to, right? I know what that feels like. It's just one thing after the next, right? It's always this next thing that came up, whether it was a good thing like a birthday or a holiday or a celebration of some sort, but then there were also the life emergencies that we never had a real plan for, right? You just constantly are using the credit cards to save you.
Brenda Philhower:
Yeah.
Brad Nelson:
Yeah. So I think a lot of us could deal with that. From a stress level and emotional standpoint, how would you rate that? Was it pretty high, pretty significant? Was this something you were constantly worried about and struggling with?
Brenda Philhower:
Yes, it was a level 10. I was always worried, how are we going to pay the bills? We actually went through a bankruptcy at one point due to me losing my job and us not having that extra money. So thankfully, we were able to work it out and keep our house. And we were still going into the same routines, using the credit cards when we shouldn't. And Debt Free Dad has just shown us The way to go.
Brad Nelson:
Yeah. Yeah, so let's talk there. So you found out about Deaf Free Dad. Now, how did you first find out what we were doing and how we were helping people? Did you find a podcast, or how did that get started for you?
Brenda Philhower:
I actually saw you on Facebook. Okay. It was one of your podcasts that was showing, and I tried a couple of others, and they were so complex and so difficult to use. And I kind of waited for a couple of months and then I decided to join. And when I started getting into it, it was like, wow, this is easy. We just need to change our behaviors and make sure that we keep our debt down and use the planner that we've gotten from you. We use a budget now.
Brad Nelson:
Yeah. Yeah. Can you talk a little bit about the behavior side of it? Because, you know, when we first start as when you're a member in Roots, like that's one of the things that we focus on right away is behaviors, habits, choices. And can you share like when you first got started, what were some of the things that kind of stuck out to you that you realized like, yikes, like we really got to straighten that up? Or was there any areas that were kind of surprising to you as you got started?
Brenda Philhower:
Yeah. The food deliveries like DoorDash. We weren't thinking about what we were spending. on so we started using what we call in here is the wwbd what would brad do yeah so you know 24 hours we would wait and then we were like no we don't really need it or yes we do need it but we always we're trying to make sure that we always pay in cash
Brad Nelson:
yeah Yeah, I love that you're using that because we talk about that 24 hour rule on the podcast. And so I love that you brought it up because it's worked for you. You know, just giving sometimes those purchases just a little bit more thought. It allows just that emotion to buy, like just kind of simmer down a little bit and you kind of come back with a clear head of like, you're right, we don't really. We don't really need a lot of this stuff. And one of the questions that we had sent over to you and kind of what we were prepping for the episode, you had brought up the word budget and how even today you said we never really lived on a budget, but now you are. Can you share how budgeting has helped you with all of this?
Brenda Philhower:
It keeps our spending down, way down. I also keep track of everything that we do spend. And I say, well, this is what we need to work on this month. It also makes sure that all the bills get paid and get paid on time. Because we had to go from a biweekly salary to a monthly salary. So that was a big hurdle that we had to get over. But it sure helped a lot.
Brad Nelson:
Yeah. Now you mentioned, yeah, we mentioned in your introduction that you and your husband, you've been married for 38 years, which is congratulations, by the way. Thank you. That's amazing. But were you guys on the same page with finances prior to starting this? Did you see any improvement there as the two of you worked through this?
Brenda Philhower:
I did see improvement. We both realized where the spending was going and what we were spending it on. So we made sure that we connected together and said, okay, we're going to do this.
Brad Nelson:
Yeah. Yeah. I mean, we're going to talk about the amount of debt you've paid off here, but you guys also were really successful in building up your emergency fund. And you can share a little bit of this. You built it up, but then had some emergencies come up. But how beneficial has that emergency fund been for you? And I guess from a stress level, even having something to fall back on, can you kind of go through that a little bit and just how much of a difference maker that is?
Brenda Philhower:
It's been a big difference. We don't have to worry about credit cards. We do have it in a separate account. So we transferred. It takes about two to three days to transfer the money. But we have an idea before that we will need it. And we use it instead of using credit cards. So we're not paying crazy amounts of interest on it.
Brad Nelson:
Right.
Brenda Philhower:
Unfortunately, we did have to replace our AC. But I've looked at our budget again. And They're saying, yeah, we'll only have to pay $150, but I'm looking at it and I'm saying we can pay $300. Yeah. We are going to try to pay it off, keeping our fingers crossed before next June because it will be interest-free if we can do that.
Brad Nelson:
Yeah. And I love that you brought that up too because, you know, as you mentioned, when you first started, you had some medical stuff that prevented you from really starting the way you wanted to. Mm-hmm. So you got a little bit of a late start, but you mentioned you've had to replace your AC. I mean, you've had some things kind of pop up. This has definitely not been a cakewalk throughout this whole journey. I mean, you've definitely have had some challenges pop up, right?
Brenda Philhower:
Yes, very much. I haven't been able to work for about 13 years. So we only have his income. So we definitely watch what we're spending, especially now. We are hopefully going to be debt-free. within two years. And then I'm hoping another three to four years to pay off the house.
Brad Nelson:
Right.
Brenda Philhower:
Yeah. Be about seven years. Yeah. We'll be totally debt free.
Brad Nelson:
Yeah. That's incredible. And the amount of debt you paid off, can you share real quick? Cause this is incredible.
Brenda Philhower:
It's close to 42,000. $42,000
Brad Nelson:
in debt paid off in the last three years. And you're doing that mostly on a single income. Cause like you said, you haven't been working. That's incredible. How does it feel when you see
Brenda Philhower:
that number?
Brad Nelson:
Yeah. Yeah, I love it. And again, we're talking about the basics. You guys didn't do anything really fancy or outside of the box. You lived on a budget. You prioritized saving. You really started to pay attention to behaviors. I love it because it's proof. Again, we talk about this stuff over and over again on the show. And the basics really do work. They really can help you improve. It takes time. Like you said, you've been doing this for three years, but what a difference maker it's made for you guys. It's just incredible.
Brenda Philhower:
It is. We're no longer worried about how we're going to pay our next bill or if we're going to have money for a doctor or medicines. It's just
Brad Nelson:
incredible. Yeah. Great feeling. A couple of the other things you do too that I find interesting is you're a preparer now. You prepare early. You save up for Christmas. You do a lot of home crafts. You have gotten really strategic about going about this and it's really helped you save a considerable money. You've Stop by yard sales, promise sales. You've been very much more intentional with some of that. Can you share a little bit of that too?
Brenda Philhower:
Yes. I run a yard sale group, a local yard sale group. And I go to these yard sales and some of these crafts, brand new, never been opened. I get them at a fraction of the cost where in the regular stores, even in Walmart, it's cheaper to go to the yard sales. Right. I just make crafts. It helps with keeping the cost of Christmas down as well as birthdays. It's really incredible.
Brad Nelson:
Yeah. So if you had to start all the way over again and, you know, say we got new listeners, they're listening to this. They haven't started. They haven't done anything. If you had to start all the way back over from day number one, what do you feel you would focus on the most? Because you've done this for three years. What do you think has made that biggest difference for you?
Brenda Philhower:
I would say the budgeting. It's the biggest difference because it shows you where you're spending, where you can change the spending, saving up money. It's just incredible the way the budgeting works. And it's not complicated. So that's really incredible.
Brad Nelson:
Did you ever think anything like this would be possible for you?
Brenda Philhower:
No. I thought we would be forever in debt.
Brad Nelson:
Yeah. I find that so fascinating. I did too. I had that same mindset. I just felt like I was never going to get out. But you start making those little wins, getting that progress. You turn around and you see like something you've achieved over $40,000 in debt paid off in three years. It's just incredible. For a lot of people, finance is a very taboo topic. We're a very spend-focused society, consumption society. So when you get out of debt, you tend to get some weird looks like if you share it with people. Do you get any weird feedback from people? Like you guys were getting out of debt. Do you guys share any of your journey with anybody?
Brenda Philhower:
We did with a couple of friends and they were like, Well, you've got the money now. Why not spend it? You've got the credit cards. Yeah. It'll boost your ratings. And I'm like, no, it hasn't boosted ours. It's actually done the opposite. Yeah. Yeah. But they're now seeing what we're accomplishing. So
Brad Nelson:
raising some eyebrows a little bit.
Brenda Philhower:
Yes, it is. Yeah. They're
Brad Nelson:
pretty amazed about it. I love it. I love it. Congratulations to you guys. It's so cool. Thank you. If someone was on the fence and hesitating to get started, whether they joined Roots or did anything, what would you encourage them after everything you've been through and gone through? What would you say to them to encourage them to at least get started with something?
Brenda Philhower:
I would actually tell them to join. You have nothing to lose and everything to gain. I didn't think it would work when I first started. But when I got into it and looked at it, I'm like, I can do this. We can work it out. And I'm excited that I'm going to be debt free soon. It's just incredible. Just do it.
Brad Nelson:
Awesome, Brenda. Well, again, I want to just say thank you so much for jumping on and sharing and just encouraging other people. And again, showing them that the basics. really do work. And you've been consistent with it. You've stuck with it. And your results are speaking to that. I mean, it's just been incredible what you guys have been able to do. So huge congratulations to you guys.
Brenda Philhower:
Thank you. And thank you for all that you're doing for everyone.
Brad Nelson:
Well, I appreciate that. It's a privilege. I love having our Roots members on who are showing that still even today, in this day and age, normal everyday people still can get out of debt, improve their finances, reduce stress. And you guys have proven that. I just love it.
Brenda Philhower:
Yeah, it's definitely a lot
Brad Nelson:
less stress. Now, if you're ready to break free from living paycheck to paycheck, you want to reduce financial stress, you want to build a savings and finally pay off your debt for good. But again, maybe you're just not sure where to get started. Don't worry. We've got you covered here at Debt Free Dad. Simple, I found my money. I'll see you next time.
Announcer:
Let's talk about death, baby. Let's talk about your money. Let's talk about all the good things, all the bad things that may be. Let's talk about death. Let's talk about death.
Brad Nelson:
Tune into Death Free Death. Tune into Death Free Death. Celebrations here today, along with Brenda's amazing journey and story that she shared. But the first one here is Susan. Susan says, I've paid off $5,750 since starting in January. At this time, it's about a five-month period. So she's averaging well over $1,000 a month in additional debt payoffs. Susan, congratulations. That is phenomenal. Tara says, I paid off my truck this weekend. Amazing feeling having that Cardo paid off. Nothing drives better than a paid for car. Tara, congratulations. I know firsthand that feels amazing. And then Paige, Paige says, I paid $1,350 towards my first community credit card. All that money was made from dog sitting this past month. Paige, I love that you are focusing on those income producing activities, doing something you enjoy at the same time and making money to pay down your debt. That's a win-win. Awesome, awesome job. Hey, as always, guys, congratulations to all of you guys who are taking a stand for your financial life and you're wanting better. Hey, we get that getting out of debt is not easy, but with our help and with your consistency and discipline, we promise you guys this will be some of the best work that you guys do in your entire life. Thanks for joining us on today's show, and we will see you guys on the next episode.
Announcer:
Thanks for listening to the Debt-Free Dad podcast. Connect with us on Facebook, TikTok, YouTube, and Instagram. Just search Debt-Free Dad. If you found value in today's episode, please leave us a rating and review. We so appreciate it. For resources, show notes, and links mentioned in today's show, visit DebtFreeDad.com. Catch you next week.
