Paid off $23,400 in personal loan debt in 18 months on a $58k salary. Here's exactly what I did and what I wish I'd known at the start.
not a flex post, more of a "here's what actually worked because i spent a lot of time reading posts like this before i started"
background: took out two personal loans in 2023, one for a car repair situation that spiraled, one i honestly shouldn't have taken. combined balance was $23,400 at an average APR of 21.4%. minimum payments were eating $480 a month and i was barely touching the principal
what i did:
first thing was refinancing. spent two weeks shopping rates and got approved through a credit union at 11.2% APR. that one move saved me roughly $3,800 in interest over the life of the loan. if you haven't compared rates recently and your credit has improved at all, do this before anything else
avalanche method for payoff order. threw everything extra at the higher rate loan first, minimums on the other. boring math but it works
found $640/month in actual cuts. not aspirational cuts, real ones. dropped two streaming services, paused a gym membership i wasn't using, stopped buying lunch three days a week, refinanced my car insurance. none of it was dramatic individually but together it was the difference
any unexpected money went straight to principal. tax refund, a small bonus, birthday money from my parents. didn't touch it
took 18 months. last payment was april 2026
what i wish someone had told me: the refinancing step is the highest leverage thing you can do first. i waited four months before doing it and that was a mistake. also the avalanche vs snowball debate is real — avalanche saves more money but snowball might keep you more motivated. know which type of person you are before you pick
happy to answer questions about any of it