Brooke Eichenbaum, a 29-year-old physical therapist from Miami, Florida, is on track to pay off $166,000 in debt, including $137,000 in student loans and a $29,000 car loan. Through a combination of discipline, frugality, and prioritizing her finances, Eichenbaum has reduced her total debt to $80,000 in just three years. She’s well on her way to becoming debt-free in two more years. Here’s how she’s doing it.
Living Frugally to Pay Off Debt Faster
Eichenbaum's story began after she graduated with a physical therapy degree in 2022. Although she was excited about her career, the amount of student debt she had accumulated was overwhelming, especially with an 8% interest rate. “I went to university and took out all these loans. You don’t really think about it that much when you're accepting them. You don’t think about paying it back and the interest,” she said.
Once she graduated, the reality of her student loans hit hard, but Eichenbaum was determined to pay them off as quickly as possible. "My goal is not to have any money struggles—to live a life and not have to worry about bills," she said. She embraced a frugal lifestyle as part of a strategy to aggressively pay down her debt. "It's not about restricting. It's about choosing other options. It's simply making different choices and being happy with what I have while being very motivated for the options that a debt-free life has to offer."
Practical Steps to Debt Repayment
Eichenbaum earns $5,500 a month as a physical therapist, but she chooses to live simply, sticking to a tight budget that allows her to pay off her debts aggressively. “I try to keep my lifestyle as it was when I was a student,” she said. “I cook at home 99 percent of the time. I make a meal plan, and I have all the ingredients so I’m not tempted to eat out.” This simple act of meal planning has been a key factor in helping her cut back on spending. She and her fiancé, who also lives with her, spend only around $500 on groceries each month.
Eichenbaum also avoids buying new clothes. "I don’t go out and buy new clothes. I have two pairs of jeans,” she said. “My jeans are several years old. I’m wearing things from years ago—they are still in good shape. Any new clothes I get are holiday gifts.”
In addition to cutting out luxuries like new clothes and dining out, Eichenbaum also plans activities that are free or low-cost. "I like to have fun but I plan cheap, low-cost activities. You don’t need to spend money to have a nice weekend,” she explained. Whether it’s going for a walk, visiting the beach, or hosting friends at home, she finds creative ways to enjoy life without overspending.
Budgeting and Tracking Spending
One of Eichenbaum’s essential tips for paying off debt is tracking her spending. “I use an app. The first step is to know where your money is going,” she said. By meticulously keeping track of her finances, Eichenbaum ensures that every dollar is accounted for and directed toward reducing her debt.
She also has a strategy for how she tackles her loans. Eichenbaum aims to put $2,000 a month toward her student loan and $500 toward her car loan. Despite receiving a pay increase at work, she continues to live like she did when she was a student, sticking to her budget and remaining committed to her debt-free goals.
The Results: A Debt-Free Future in Sight
Eichenbaum’s dedication to her goal is paying off. Within just three years, she has reduced her debt from $166,000 to $80,000. “It was such a big number to start with. It’s a relief,” she said, reflecting on how far she’s come. Her commitment to living simply and prioritizing debt repayment has set her on a path to pay off her remaining debt in just two more years.
Looking ahead, Eichenbaum is excited about her future. “I think I’ll still be living very simply. It shows you what’s important to you [living frugally]. I don’t think I’m going to go and buy a bunch of clothes. I’d rather invest into my future,” she said. For Eichenbaum, it’s not just about cutting back—it’s about making choices that align with her long-term goals.
Brooke’s Tips for Clearing Debt Faster
Eichenbaum’s debt repayment success comes down to four key strategies:
- Cook your meals at home instead of ordering takeout or going to a restaurant.
- Don’t buy new clothes if you can avoid it.
- Plan free or low-cost activities.
- Track your spending to ensure every dollar counts.
Eichenbaum is proud of how much she’s accomplished in just three years and hopes that her journey can inspire others. “A lot of people may feel embarrassed to tell their friends they have a lot of debt. My close friends are very supportive. They are happy to come along with me to do something free,” she shared.
By living frugally and making intentional choices, Eichenbaum is not just tackling her debt—she’s shaping the life she wants for the future.