How I Got Out of $47,000 in Debt: My Real Strategy (With Spreadsheet)

Last updated: August 2025

The Moment That Changed My Life: Finding Out I Owed $47,000

The first step to getting out of debt is having the courage to face the numbers head-on. With a spreadsheet, dedication, and the right strategy, you can transform financial chaos into an organized plan toward freedom.

It was a typical Tuesday in March 2024 when I decided to do something I'd been putting off for months: add up all my debts. Sitting at the kitchen table with a cold cup of coffee and a stack of bills, I started typing numbers into a simple Excel spreadsheet.

• Bank A credit card: R$18,500

• Bank B credit card: R$12,300

• Car financing: R$8,900

• Personal loan: R$4,800

• Store card: R$2,500

• Total: R$ 47,000

When I saw that number on the screen, my stomach dropped. Forty-seven thousand reais. It was more than I earned in an entire year. How had it gotten to this point? How could someone who had always considered themselves financially "responsible" owe so much money?

At that moment, two things became clear: first, I needed a real strategy to get out of this situation. Second, I could no longer pretend the problem didn't exist.

If you're reading this article, you're probably going through something similar. Maybe you've also recently discovered the true extent of your debt, or maybe you've known for a while but don't know where to start. I want to share with you exactly how I managed to get out of debt using a strategy I created and tested in practice.

I won't lie: it wasn't easy, it wasn't quick, and it definitely wasn't linear. But it worked. And if it worked for me, it can work for you too.

The Naked Reality: How I Got to $47,000 in Debt

The first step to getting out of debt is having the courage to face the numbers head-on. With a spreadsheet, dedication, and the right strategy, you can transform financial chaos into an organized plan toward freedom.

Before I talk about debt repayment strategies, I need to be honest about how I got into this situation. Understanding the causes is crucial to creating a sustainable solution.

The Beginning: Small Slips That Became Avalanches

My debt story didn't begin with a major emergency or an irresponsible expense. It began with small slip-ups that, over the course of three years, turned into a financial avalanche.

2021: The First Signs:

•I started using my credit card for small "emergencies"

•I paid for a R$2,000 TV in 12 interest-free installments

•I financed a R$1,500 course because "it was an investment"

2022: The Snowball Started Rolling

•I lost my job and was unemployed for three months

•I used the card to pay basic bills (electricity, water, groceries)

•I took out a loan of R$3,000 to "reorganize myself"

•I got a new job, but with a salary 20% lower

2023: Total Loss of Control

•I moved to another city because of work (extra expenses)

•I financed a used car because I "needed it for work"

•I started paying only the minimum on my cards

•I took out more loans to pay off other loans

The Mistakes That Led Me to Rock Bottom

Looking back, I can pinpoint exactly where I went wrong:

1. I had no real control over my spending - I thought I knew where I spent money, but I didn't write anything down.

2. Confused need with desire - Justified unnecessary purchases as "investments"

3. I had no emergency fund - Any unforeseen event turned into debt

4. I only paid the minimum - I didn't understand how compound interest was destroying me

5. Going into debt to pay off debt - The classic mistake that accelerates bankruptcy

The Moment of Truth

In December 2023, I received a call from the bank offering another loan. My first reaction was, "Great, I'll be able to pay the January bills." It was at that moment that I realized I was completely addicted to debt.

It was like being a drug addict, but my drug was borrowed money. Each new loan gave me temporary relief, but worsened my situation in the long run.

That's when I made the hardest decision of my life: to stop running away from reality and face the problem head on.

My Step-by-Step Strategy: The Method I Created and Tested

Creating a detailed plan was crucial to my success. Every debt was mapped, every strategy tested, every result recorded. Organization transformed chaos into a clear path to financial freedom.

After discovering I owed R$47,000, I spent two weeks researching debt-payment methods. I read about the snowball strategy, the avalanche strategy, the 50/30/20 strategy, and several others. But none of them perfectly suited my situation.

It was then that I created my own debt-payment strategy, combining elements from different methods and adapting it to my specific situation. I called it the "Total Transparency Method."

Step 1: Complete Situation Mapping (Week 1)

The first step was to take a complete look at my financial life—not just my debts, but everything.

Detailed Debts:

•Total value of each debt

•Interest rate of each one

• Minimum monthly amount

•Expiration date

•Consequences of non-payment

Real Income:

•Net salary

•Extra income (freelances, sales)

•Benefits (food vouchers, etc.)

Essential Expenses:

•Housing (rent, condominium, property tax)

•Basic food

•Transportation to work

•Medicines/health

•Basic telephone/internet

Cuttable Expenses:

•Streaming (Netflix, Spotify, etc.)

•Delivery and restaurants

•Clothing and accessories

•Hobbies and entertainment

•Unnecessary signatures

Step 2: Creating the Control Sheet (Week 2)

I created an Excel spreadsheet that became my main tool. It had five tabs:

1. Overview - Summary of everything

2. Debts - Details of each debt

3. Monthly Budget - Income vs. Expenses

4.Payment Plan - Month-to-Month Strategy

5. Monitoring - Actual vs. Planned Progress

The spreadsheet automatically calculated:

•How long would it take to pay off everything?

•How much interest would I pay in total?

•Which debt to prioritize

•How much was left for extra payments

Step 3: Hybrid Prioritization Strategy

Instead of just following the snowball (lowest value first) or avalanche (highest interest first), I created a hybrid strategy:

Priority 1: Debts at Risk of Foreclosure

•Car financing (you could lose the asset)

•Loan with guarantor (could harm third parties)

Priority 2: Higher Interest Rates

•Revolving credit card (more than 300% per year)

• Special check

Priority 3: Lower Values (To Gain Momentum)

•Store card

•Small loans

Step 4: Radical Cost-Cutting Plan

I cut out everything that wasn't absolutely essential:

Immediate Cuts (Savings: R$890/month):

•I canceled Netflix, Spotify, Amazon Prime (R$65)

•I stopped ordering delivery (R$400)

•I cancelled the gym membership (R$89)

•I stopped buying clothes (R$ 200)

•Reduced trips to bars/restaurants (R$ 300)

•I canceled magazine/newspaper subscriptions (R$ 36)

Temporary Cuts (Savings: R$ 320/month):

•I changed to a cheaper cell phone plan (R$80)

•I canceled cable TV (R$ 120)

•I stopped going to the barber (I used to cut my hair at home) (R$ 60)

•Reduced transportation costs (more walking) (R$60)

Total Cuts: R$ 1,210/month

Step 5: Extra Income Strategy

I knew that simply cutting expenses wouldn't be enough. I needed to increase my income:

Immediate Extra Income:

•I sold items I didn’t use (R$2,800 in the first month)

•I started doing freelance design work (R$400-800/month)

•I offered consulting services in my area (R$ 300-600/month)

Planned Extra Income:

•I created an online course about my specialty

•I started writing paid articles for blogs

•I offered text review services

Step 6: Negotiation with Creditors

With the spreadsheet in hand, I called all my creditors. My strategy:

1. Be completely honest about my situation

2. Show my payment plan

3. Ask for a discount for cash payment

4. Negotiate longer terms if necessary

Negotiation Results:

•Card A: 40% discount for cash payment

•Card B: Payment in 24 interest-free installments

•Loan: 2% reduction in interest rate

•Store card: 60% cash discount

The Spreadsheet That Saved My Life: Free Download + Tutorial

Tracking my results month by month was essential to staying motivated. Seeing the graphs showing my debt reduction from R$ 47,000 to R$ 25,500 gave me the strength to keep going during the toughest times.

The debt management spreadsheet I created was crucial to my success. It's not just a calculation tool, but a complete financial management system.

Spreadsheet Features

Tab 1: Main Dashboard

•Overview of all debts

•Monthly progress in charts

•Estimated time to pay off everything

•Total amount of interest saved

Tab 2: Debt Registration

•Name of creditor

•Original and current value

•Monthly interest rate

•Minimum value

•Expiration date

•Status (up to date, overdue, negotiated)

Tab 3: Monthly Budget

•All recipes

•Fixed and variable expenses

•Amount available for debt payment

•Planned vs. actual comparison

Tab 4: Payment Simulator

•Different payment scenarios

•Comparison between strategies (snowball vs. avalanche)

•Impact of extra payments

•Calculation of total interest

Tab 5: Monthly Monitoring

•Record of all payments

•Evolution of outstanding balance

•Goals vs. reality

•Observations and adjustments

How to Use the Spreadsheet (Step-by-Step Tutorial)

Step 1: Download and Initial Setup

1. Download the spreadsheet (link at the end of the article)

2. Open in Excel or Google Sheets

3. Enable macros if prompted

4. Read the "Instructions" tab first

Step 2: Debt Registration

1. Go to the "Debts" tab

2. Fill in a line for each debt

3. Be precise with values and rates

4. Use the "Notes" column for important details

Step 3: Budget Setup

1. In the "Budget" tab, list all income

2. Register all fixed expenses

3. Estimate variable expenses based on the last 3 months

4. The spreadsheet will automatically calculate the available amount.

Step 4: Choosing a Strategy

1. Use the "Simulator" to test different approaches

2. Compare the total time and interest paid

3. Choose the strategy that makes the most sense for you

4. The spreadsheet will generate an automatic schedule

Step 5: Monthly Follow-up

1. Every month, record the payments made

2. Update debt balances

3. Compare actual progress with planned progress

4. Adjust the strategy if necessary

Important Tips for Using the Spreadsheet

Be Realistic with the Numbers

•Use real values, not ideal values

•Include a safety margin in your expenses

•Don't overestimate your ability to pay

Update Regularly

•Review the spreadsheet at least once a week

•Record all payments immediately

•Adjust projections based on reality

Use the Simulations

•Test different scenarios before making decisions

•See the impact of extra payments

•Compare different strategies

Real Results: How Much I've Already Paid Off and How Long It Took

Now comes the part you probably want to know most: the actual results. I'll share exact, month-by-month numbers of my progress.

Initial Situation (March 2024)

•Total Debt: R$ 47,000

•Net Income: R$ 3,200/month

•Essential Expenses: R$2,100/month

•Available for Debts: R$ 1,100/month

Month-by-Month Progress

April 2024 - First Month

•Payments made: R$ 2,890 (including sales)

•Remaining debt: R$ 44,110

•Main actions: Sold old electronics, negotiated store card

May 2024

•Payments made: R$ 1,650

•Remaining debt: R$ 42,460

•Main actions: First month with a controlled budget, I started freelancing

June 2024

•Payments made: R$ 1,890

•Remaining debt: R$ 40,570

•Main actions: Extra income of R$600, paid off store card with discount

July 2024

•Payments made: R$ 2,100

•Remaining debt: R$ 38,470

•Main actions: Negotiated interest-free installment payments for a debt

August 2024

•Payments made: R$ 1,780

•Remaining debt: R$ 36,690

•Main actions: Hardest month, I had extra health expenses

September 2024

•Payments made: R$ 2,340

•Remaining debt: R$ 34,350

•Main actions: Received large freelance pay, focused on the highest interest debt

October 2024

•Payments made: R$ 1,950

•Remaining debt: R$ 32,400

•Main actions: I completely paid off my personal loan

November 2024

•Payments made: R$ 2,200

•Remaining debt: R$ 30,200

•Main actions: I got a 30% discount on one of my debts

December 2024

•Payments made: R$ 2,800 (including 13th salary)

•Remaining debt: R$ 27,400

•Main actions: I used my 13th salary in full to pay off debts

January 2025

•Payments made: R$ 1,900

•Remaining debt: R$25,500

•Main actions: Total focus on the card with the highest interest rate

Analysis of Results

In 10 months I managed to:

•Reduce debts from R$47,000 to R$25,500

•Pay off R$21,500 in debt (45.7% of the total)

•Save approximately R$8,000 in interest through negotiations

•Create an average extra income of R$500/month

Estimated time to pay off everything: Another 18 months (September 2026)

Total amount I will pay: R$41,200 (instead of the original R$73,000 with interest)

What Worked Best

1. Discounted Deals: I saved over R$8,000

2. Sale of unused items: R$4,200 in the first quarter

3. Strict control of expenses: I maintained cuts of R$1,200/month

4. Consistent extra income: Average of R$500/month additional

5. Monitoring spreadsheet: Essential for maintaining focus

What Was Hardest

1. Maintain discipline in spending: Especially in the first few months

2. Dealing with emergencies: Medical expenses disrupted the schedule

3. Social pressure: Explaining why you couldn't go out/travel

4. Financial anxiety: Sleepless nights thinking about debts

5. Temptation to give up: Especially when progress was slow

Lessons Learned: What I Would Do Differently Today

After 10 months on this journey, I've learned many valuable lessons. Some things worked better than I expected, others were more difficult than I imagined.

What Would You Do the Same?

1. Total Transparency with Myself The decision to map everything and not hide any numbers was fundamental. Many people fail because they lack the courage to face the full reality.

2. Creating the Detailed Spreadsheet Having all the numbers organized and up-to-date gave me complete control over the situation. Without it, it would have been impossible to make strategic decisions.

3. Immediate Negotiation with Creditors Calling all the banks and negotiating was one of the best decisions I made. I got discounts that saved thousands of reais.

4. Focus on Extra Income Just cutting expenses wasn't enough. The extra income was essential to speed up the process.

5. Celebrate Small Victories Every debt paid off, every goal achieved, every month in the black. Celebrating these moments kept me motivated.

What Would You Do Differently?

1. I Would Have Created an Emergency Fund Earlier My biggest mistake was not having even R$500 saved when I started. Any unforeseen event would disrupt my schedule.

Solution: Even if you owe money, you would save at least R$1,000 before accelerating payments.

2. I'd Be Less Radical in My Initial Cuts. I cut everything at once, and it caused a lot of stress. Some things were important for my mental well-being.

Solution: I would make gradual cuts, while maintaining at least one cheap leisure activity.

3. I Would Have Asked for Help Sooner It took me six months to tell my family about the situation. When I did, I received emotional support that made all the difference.

Solution: I would share the situation with people close to me from the beginning.

4. I Would Invest More in Financial Education I learned a lot through practice, but I could have avoided some mistakes by studying more about personal finance.

Solution: I would dedicate at least 1 hour per week to studying financial education.

5. I Would Have Documented the Journey Better I only started writing about this after 6 months. I missed out on a lot of the insights and emotions from the beginning.

Solution: I would keep a diary from day one.

Advice for Beginners

1. Start Today, Not Tomorrow. The perfect day to start doesn't exist. Start with what you have, where you are, and how you can.

2. Be Honest About Your Situation. There's no point in lying to yourself. The more accurate your initial analysis, the better your strategy will be.

3. Don't Try to Be Perfect. You'll slip up, you'll have bad months, you'll want to give up. That's normal. The important thing is to keep going.

4. Focus on Progress, Not Perfection Paying an extra R$100 toward a debt is progress. It doesn't have to be R$1,000 to make a difference.

5. Have a System, Not Just Motivation. Motivation fades, the system remains. Create processes that work even when you're not feeling inspired.

6. Celebrate Every Victory Pay off a small debt? Celebrate! Go a month without using your credit card? Celebrate! These victories keep you motivated.

7. Prepare for the Marathon. Getting out of debt isn't a sprint, it's a marathon. Prepare yourself mentally for a long journey.

Conclusion: Your Journey Starts Now

If you've made it this far, it's because you're truly committed to getting out of debt. And that's already 50% of the way there.

I won't lie: the next few months will be difficult. There will be times when you'll want to give up, times when it feels like you're not making progress, times when you'll feel alone in this battle.

But I'm here to tell you: it's possible. If I could reduce R$47,000 to R$25,500 in 10 months, you can too. Not because I'm special, but because I followed a consistent system and didn't give up.

Your situation may be different from mine. Maybe you owe more, maybe you owe less. Maybe you earn more, maybe you earn less. But the principles are the same:

1. Face reality head on

2. Create a detailed plan

3. Perform consistently

4. Adjust when necessary

5. Never give up

Your Next Steps

1. Download the spreadsheet (link below) and complete your mapping.

2. Define your strategy based on your reality

3. Start today, with the first extra payment you get.

4. Share your situation in the comments (can be anonymous)

5. Follow this blog to see my progress and share yours

Download the Free Spreadsheet

The spreadsheet that saved my financial life is available to you for free. It includes:

•All the formulas I use

•Complete usage tutorial

•Completed examples

•Simulators of different strategies

•Automated monthly monitoring

[DOWNLOAD FREE SPREADSHEET - CLICK HERE]

Let's Go Together on This Journey

Getting out of debt doesn't have to be a lonely journey. Share in the comments below:

•What is your current situation? (can be anonymous)

•What is your biggest difficulty in paying off debts?

•What strategy do you intend to use?

•How can I help you on this journey?

I personally respond to all comments and am here to support you in this transformation.

Remember: every day you put off starting is another day paying interest. Your financial independence starts today, with the first step.

You can do it. I believe in you.

This article is part of the "From Near Bankruptcy to Financial Independence" series, where I document my financial recovery journey in real time. To track my monthly progress and receive exclusive tips, subscribe to our newsletter.