The truth about paying off debt? It’s rarely a straight line. In fact, it’s more like a winding road with some potholes, unexpected detours, and the occasional sharp turn you didn’t see coming. And every once in a while, you fall off track. Maybe it’s a spontaneous trip, an emergency, or—more often than not—just plain burnout. You blow your budget, swipe the credit card, and suddenly feel like you’ve ruined everything.
I know that feeling all too well. There was a time, about a year into my debt payoff journey, when I hit a wall. I was doing great—paying off debt, sticking to my budget, watching my savings grow. But then life threw a curveball. My car broke down unexpectedly. The repair bill was higher than I expected. I didn’t have enough cash set aside in my emergency fund to cover it.
So, what did I do? I did what I swore I wouldn’t. I put it on a credit card.
I’ll admit, the moment I did it, I felt a rush of guilt. Here I was, trying so hard to stick to a plan, and I had gone and swiped my way right back into the cycle I was trying to escape. I could feel the old habits creeping back in: What’s the point? I’ll never get out of debt anyway.
But here’s the thing about setbacks: They don’t define your entire journey. They’re just part of the process. What matters isn’t the stumble—it’s what you do next.
So, I sat with the guilt for a bit. I let myself feel disappointed in myself. Because, yes, I’d made a mistake. But I also reminded myself that one mistake didn’t erase all the progress I’d made. I had to reframe my thinking—just because I’d made a misstep didn’t mean I was back to square one. This was a bump in the road, not the end of the journey.
The first thing I did was take a deep breath and get honest with myself about what happened. Why did I make the decision to use credit instead of digging into savings? Was it because I wasn’t prepared, or because I’d let my emotions take over? What was the root cause?
For me, it wasn’t just about the repair. It was the emotional weight of feeling stuck in a cycle of always needing to react to life’s surprises with debt. I realized that I hadn’t built my emergency fund high enough yet. It wasn’t just about debt—it was about not feeling secure enough to face the unknown.
Once I identified that, I made a plan. First, I recalculated my debt payoff timeline. I could still pay it off in the same amount of time I’d planned, but I needed to rework my savings strategy. I set up a more realistic emergency fund goal—one that included buffer money for moments like this. I also had to take a hard look at my spending and see where I could trim back to get back on track.
I reminded myself that the road to financial freedom wasn’t about perfection; it was about consistency. I wasn’t aiming for a perfect record—I was aiming to show up, over and over again, and build better habits along the way.
Here’s what I did to get back on track:
- Own the mistake, but don’t dwell on it. I acknowledged that I had made a choice I wasn’t proud of, but I didn’t let it consume me. Guilt can be paralyzing, but it’s also completely unproductive. Instead of getting stuck in negative self-talk, I focused on how I could learn from the situation.
- Revisit your “why.” When I was feeling frustrated, I went back to the reason I started this journey: I wanted freedom from debt and the peace of mind that comes with knowing I have options. It wasn’t just about paying off a number on a credit card—it was about living without the constant weight of financial stress. I reminded myself that one setback didn’t take that away.
- Reset your goals. After my slip-up, I re-adjusted my budget and timeline. I recalculated the numbers, figured out how much extra I could pay each month, and adjusted my savings goals accordingly. Sometimes the best thing you can do is sit down with a fresh set of eyes and come up with a new plan that still feels achievable.
- Take small, steady steps. Big goals can feel overwhelming, especially after a setback. So I focused on small wins. Paying down $50 one month might not feel like much in the grand scheme of things, but it’s progress. Every payment, no matter how small, is a step in the right direction.
- Celebrate the wins—no matter how small. Even when it felt like I was only making tiny dents in my debt, I celebrated. Every time I paid something off, I acknowledged it. I celebrated paying off a card, getting my savings back on track, or even sticking to my budget for a week. Those small victories gave me the momentum I needed to keep going.
- Get back to your budget—and stick to it. This one is non-negotiable. The biggest way to recover after a slip-up is to get back to the routine. You’ve already done the hard work of setting up a budget, so don’t let a mistake throw you off course. Stick to the plan and adjust where necessary, but keep going.
The truth is, I still have setbacks from time to time. But they don’t stop me anymore. They don’t derail me. I’m able to recover quicker, move on faster, and learn from the experience.
If you’ve had a setback in your debt-free journey, don’t give up. It’s part of the process, and it doesn’t undo all the work you’ve done. Take a step back, reframe the situation, and give yourself permission to start fresh. Keep showing up, and keep making progress. Because the only real failure is stopping.
And if you’ve learned anything from this experience—it’s that you can handle setbacks, and you’re capable of bouncing back stronger than before.