378. Overcoming Debt Setbacks and Finding Your Path to Financial Freedom

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In this episode of the Debt-Free Dad podcast, Kati shares her personal journey through financial setbacks and how she has managed to stay on track toward debt freedom despite numerous challenges. Hit hard by unexpected financial burdens in 2025, including job loss and medical expenses, Kati emphasizes the importance of resilience and community support. She outlines practical tips for managing spending, saving, and rebuilding after financial setbacks. Tune in for inspirational advice and learn how to take control of your finances and live a stress-free life. Subscribe for more empowering stories and strategies from Brad Nelson and the Debt Free Dad team.

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Episode Transcript

Kati (00:00):
Do you ever feel like you'll never get out of debt?
I'll be honest, 2025 threw somecurveballs and financial
setbacks my way.
If you've listened to the DebtFree Dad podcast here for any
length of time, you probablyknow that I have been working to
pay off a fairly high amount ofdebt over the last few years.

(00:20):
It's been one of the hardestyet proudest accomplishments of
my life.
While the finish line for mygoal of being debt-free has
moved a little further out intothe future, I am so grateful for
the framework of this programand the encouragement from this
community, which has given mestrength to get back on track,
stay the course, and keepworking.

(00:42):
Stay tuned if you've fallen offthe wagon and need to find your
way back to the path.

Announcer (00:50):
You're listening to the Debt Free Dad podcast with
Brad Nelson.
Brad and his co-hostsexperience the anxiety of living
paycheck to paycheck beforelearning the fundamentals of
financial success.
They are now on a mission toempower regular people to pay
off their debt for good andenjoy happier, less stressful
lives.
Keep listening forinspirational interviews, tips,

(01:12):
tricks, and practical advice togain financial freedom.

Kati (01:17):
Thank you for listening to the Debt Free Dad podcast,
where we help everyday, normalpeople like you take control of
your finances and live ahappier, less stressful life.
I'm Katie, your host fortoday's episode.
And I've been on my journey todebt freedom for seven and a
half years now.
And in that time, I've paid offover $242,901 in student loans,

(01:43):
car loans, medical bills, andcredit card debt, all on a
single income.
In January of 2025, exactly oneyear ago, I had been pretty
optimistic about accomplishing alot of big goals.
My side business, which I hadbeen steadily building for
almost four years, was growingand thriving.

(02:04):
The income had been helping meconsistently pay off debt while
also giving me some fun money toenjoy.
Then on January 24th, 2025,unexpectedly and without any
warning, the company that I wasrepresenting closed their doors
and declared bankruptcy.
It was a shock to me and all ofmy teammates.

(02:26):
Everything I had built was gonein a flash.
And while I didn't admit it tomany people, there was a bit of
depression that settled into mysoul for several months after
that.
Watching my friends scatter tofind other opportunities as I
tried to figure out what Ishould do.
But honestly, I just sat on thecouch a lot, in a daze, unable

(02:49):
to find a passion or drive tojump into anything else right
away.
I am so grateful for the greatfriends and supportive family
members that helped me with hugsand talking through things as I
went through grief, shock, anddeciding that maybe I needed a
break, do some soul searching,and get some rest.

(03:10):
Because I was also physicallystruggling with some unexplained
back and hip pain.
Thankfully, my chiropractor wasable to give me a lot of relief
with adjustments and strengthbuilding exercises, but I also
incurred some big bills forx-rays and different treatments
over the course of the year.
And I purchased a much needednew mattress.

(03:31):
Then throw in my firstcolonoscopy and getting my
wisdom teeth out over thesummer.
My emergency funds were flyingout the door faster than they
had in a long time.
And I wasn't able to replenishmy savings quite as quickly as I
had in the past without thatextra income.
In the past years, I would havespent many weekends during the

(03:55):
summer, all the way throughChristmas, setting up a booth
for my side business at events.
I've missed being out andabout, meeting new people, and
the money that came from thosesales.
But my body is thankful forsleeping in on Saturday mornings
after long weeks at my day job.
Plus, my back likely wouldn'thave improved as much as it has

(04:17):
if I had been loading andunloading all my gear and
standing for hours on end atthose events.
My family and friends weregetting 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 seeingeveryone catching up and
celebrating our growingfamilies.

(04:39):
It was just starting to add upwith all the gifts and travel
expenses.
And I'll sheepishly admit toyou that I started swiping my
credit card for the first timein over six years.
While not having that extraincome, I'm not proud of it, and
I've definitely curbed myspending after watching that

(04:59):
balance creep up.
But I wanted you to hear thisbecause none of us is perfect.
I promise we have all beenwhere you are.
We fall off the wagon, andsometimes it takes us a while to
get back on board.
Thankfully, if you've beenworking on building the habits
and mindsets that have gottenyou out of debt and seeing any

(05:21):
amount of progress, you're notstarting from zero.
You're starting with theknowledge and experience that
this program does work if youare willing to put in the effort
and commitment.
So if you're feeling ashamed,embarrassed, stressed,
struggling, please know you arenot alone.

(05:44):
If your holiday shopping got abit out of hand, or you've been
going out to eat a lot moreoften, just know that you can
pump the brakes today and getback on track with just one
simple decision.
You do not need to wait untilnext Monday or next month to
make changes.
You can start right now.

(06:06):
Just pause and take one smallstep in the right direction.
If you need an accountabilitypartner, I am right here for
you.
Make the commitment toyourself, to your family, that
you are going to put one foot infront of the other and keep
doing the work that gets youback on the right trajectory of

(06:28):
hitting your goals.
Here are some tips to help you.
Number one, wait 24 hoursbefore making a purchase.
Evaluate if it's a want thatfills a temporary void or an
actual need.
And if it's a need, is itsomething you need right now?
Or can you put a budget inplace to save up and buy it with

(06:52):
cash in a few weeks or a fewmonths instead of swiping the
credit card today?
Number two, like mama alwayssaid, you've got food at home.
Skip the drive-through.
Have some quick, inexpensive,easy prep, big batches like
spaghetti, pulled pork, a roastwith veggies that gives a lot of

(07:14):
portions.
This can stretch to feed thefamily for a few meals or help
you meal prep for those busynights.
Number three, has it been aminute since you last totaled up
the debt that you've paid off?
If you see that your bottomline has gone down since the
last time you did a quickfinance check, even if it's a

(07:34):
few hundred dollars, it's agreat reminder that you are
making progress.
This will help give you thatmotivation and some momentum to
keep going when it feels likeyou're stuck, standing still, or
rolling backwards.
And number four, start stashingaway some savings.
Even if you feel like it's asmall amount, whether it's five

(07:56):
or fifty dollars per paycheck orfive hundred dollars a month,
something is always better thannothing.
I'd love to know what you'redoing or have done to get
yourself out of a funky feelingor get your mindset back on
track.
Share it in the comments onthis episode.
And until next time, thank youfor listening to the Debt Free

(08:18):
Dad podcast.

Brad (08:19):
Now listen, if you're ready to break free from living
paycheck to paycheck, which ifyou're listening, I hope you
are.
You want to reduce financialstress, you want to build
savings, you want to finally payoff debt for good, but you're
not sure where to get started.
Don't worry, we've got to coverhere at debt free dad.
Simplify my money is sent eachSunday to your email.
We make it easy.
And simplify my money, it'syour step-by-step roadmap to

(08:41):
better financial control.
And you're also gonna learneasy to follow strategies to
manage your money effectively.
You're gonna get stress-freemoney decisions that will help
you simplify your financial lifewith proven tips that actually
work.
You're also gonna gain thetools and the confidence to
tackle your financial goals headon.
You can sign up for Simplify MyMoney by clicking the link at

(09:01):
the top of the show notes.
Thanks for joining us ontoday's show, and we will see
you guys on the next episode.

Announcer (09:12):
Thanks for listening to the Debt Free Dad podcast.
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rating and review.
We so appreciate it.
For resources, show notes, andlinks mentioned in today's show,
visit debtfreedad.com.

(09:33):
Catch you next week.