Episode: 378 - Overcoming Debt Setbacks and Finding Your Path to Financial Freedom

Do you ever feel like you'll never get out of debt? I'll be honest, 2025 threw some curveballs and financial setbacks my way. If you've listened to the Debt Free Dad podcast here for any length of time, you probably know that I have been working to pay off a fairly high amount of debt over the last few years. It's been one of the hardest yet proudest accomplishments of my life. While the finish line for my goal of being debt-free has moved a little further out into the future, I am so grateful for the framework of this program and the encouragement from this community, which has given me strength to get back on track, stay the course, and keep working. Stay tuned if you've fallen off the wagon and need to find your way back to the path.

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.

Thank you for listening to the Debt Free Dad podcast, where we help everyday, normal people like you take control of your finances and live a happier, less stressful life. I'm Katie, your host for today's episode. And I've been on my journey to debt freedom for seven and a half years now. And in that time, I've paid off over $242,901 in student loans, car loans, medical bills, and credit card debt, all on a single income. In January of 2025, exactly one year ago, I had been pretty optimistic about accomplishing a lot of big goals. My side business, which I had been steadily building for almost four years, was growing and thriving. The income had been helping me consistently pay off debt while also giving me some fun money to enjoy. Then on January 24th, 2025, unexpectedly and without any warning, the company that I was representing closed their doors and declared bankruptcy. It was a shock to me and all of my teammates. Everything I had built was gone in a flash. And while I didn't admit it to many people, there was a bit of depression that settled into my soul for several months after that. Watching my friends scatter to find other opportunities as I tried to figure out what I should do. But honestly, I just sat on the couch a lot, in a daze, unable to find a passion or drive to jump into anything else right away. I am so grateful for the great friends and supportive family members that helped me with hugs and talking through things as I went through grief, shock, and deciding that maybe I needed a break, do some soul searching, and get some rest. Because I was also physically struggling with some unexplained back and hip pain. Thankfully, my chiropractor was able to give me a lot of relief with adjustments and strength building exercises, but I also incurred some big bills for x-rays and different treatments over the course of the year. And I purchased a much needed new mattress. Then throw in my first colonoscopy and getting my wisdom teeth out over the summer. My emergency funds were flying out the door faster than they had in a long time. And I wasn't able to replenish my savings quite as quickly as I had in the past without that extra income. In the past years, I would have spent many weekends during the summer, all the way through Christmas, setting up a booth for my side business at events. I've missed being out and about, meeting new people, and the money that came from those sales. But my body is thankful for sleeping in on Saturday mornings after long weeks at my day job. Plus, my back likely wouldn't have improved as much as it has if I had been loading and unloading all my gear and standing for hours on end at those events. My family and friends were getting married and having babies left and right. I was attending baby showers, bridal showers, and weddings a few weekends every month. Of course, I love seeing everyone catching up and celebrating our growing families. It was just starting to add up with all the gifts and travel expenses. And I'll sheepishly admit to you that I started swiping my credit card for the first time in over six years. While not having that extra income, I'm not proud of it, and I've definitely curbed my spending after watching that balance creep up. But I wanted you to hear this because none of us is perfect. I promise we have all been where you are. We fall off the wagon, and sometimes it takes us a while to get back on board. Thankfully, if you've been working on building the habits and mindsets that have gotten you out of debt and seeing any amount of progress, you're not starting from zero. You're starting with the knowledge and experience that this program does work if you are willing to put in the effort and commitment. So if you're feeling ashamed, embarrassed, stressed, struggling, please know you are not alone. If your holiday shopping got a bit out of hand, or you've been going out to eat a lot more often, just know that you can pump the brakes today and get back on track with just one simple decision. You do not need to wait until next Monday or next month to make changes. You can start right now. Just pause and take one small step in the right direction. If you need an accountability partner, I am right here for you. Make the commitment to yourself, to your family, that you are going to put one foot in front of the other and keep doing the work that gets you back on the right trajectory of hitting your goals. Here are some tips to help you. Number one, wait 24 hours before making a purchase. Evaluate if it's a want that fills a temporary void or an actual need. And if it's a need, is it something you need right now? Or can you put a budget in place to save up and buy it with cash in a few weeks or a few months instead of swiping the credit card today? Number two, like mama always said, you've got food at home. Skip the drive-through. Have some quick, inexpensive, easy prep, big batches like spaghetti, pulled pork, a roast with veggies that gives a lot of portions. This can stretch to feed the family for a few meals or help you meal prep for those busy nights. Number three, has it been a minute since you last totaled up the debt that you've paid off? If you see that your bottom line has gone down since the last time you did a quick finance check, even if it's a few hundred dollars, it's a great reminder that you are making progress. This will help give you that motivation and some momentum to keep going when it feels like you're stuck, standing still, or rolling backwards. And number four, start stashing away some savings. Even if you feel like it's a small amount, whether it's five or fifty dollars per paycheck or five hundred dollars a month, something is always better than nothing. I'd love to know what you're doing or have done to get yourself out of a funky feeling or get your mindset back on track. Share it in the comments on this episode. And until next time, thank you for listening to the Debt Free Dad podcast.

Now listen, if you're ready to break free from living paycheck to paycheck, which if you're listening, I hope you are. You want to reduce financial stress, you want to build savings, you want to finally pay off debt for good, but you're not sure where to get started. Don't worry, we've got to cover here at debt free dad. Simplify my money is sent each Sunday to your email. We make it easy. And simplify my money, it's your step-by-step roadmap to better financial control. And you're also gonna learn easy to follow strategies to manage your money effectively. You're gonna get stress-free money decisions that will help you simplify your financial life with proven tips that actually work. You're also gonna gain the tools and the confidence to tackle your financial goals head on. You can sign up for Simplify My Money by clicking the link at the top of the show notes. Thanks for joining us on today's show, and we will see you guys on the next episode.

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.