How She Paid Off $500K in Debt and Built Recession-Proof Wealth

Debt doesn’t always come from reckless spending. Sometimes, it comes from simply trying to survive.

Financial hardship can look like eviction notices, repossessed cars, and unopened credit card statements piling up on the kitchen counter. And for many women—especially women of color—these experiences are more common than we talk about.

But what happens when you stop hiding from the numbers and start building a plan?

This is the story of one woman who went from over $500,000 in debt to running her own businesses and teaching others how to rebuild from financial rock bottom. Her journey proves that recovery doesn’t require perfection—it requires honesty, strategy, and commitment.

Bankruptcy Isn’t the Failure People Think It Is

When most people hear the word "bankruptcy," they associate it with failure. But for many, it’s simply a last resort when all other options have run out.

In this case, bankruptcy wasn’t used to erase credit card splurges or luxury expenses. It was used to keep a job. After her vehicle was repossessed, she filed bankruptcy just to get it back—because without transportation, she couldn’t work.

It was a decision made out of necessity, not negligence. That distinction matters. Understanding the reasons behind financial choices, especially in a system that often lacks support for low-income earners, reframes the narrative around debt and accountability.

The Turning Point: Facing the Financial Truth

One of the hardest moments came when she finally confronted the stack of unopened mail and began listing out every outstanding bill.

It wasn’t about judgment—it was about clarity.

The first step was pulling her credit report, logging each account, and creating a spreadsheet to track every dollar owed. Once she had the full picture, she could start making informed choices: which debts to prioritize, where to negotiate payments, and what spending needed to be eliminated immediately.

This process revealed a key truth: budgeting still matters, even when it feels like you’re drowning. In fact, it’s one of the few tools that can help you start swimming.

Smart Budgeting Still Works (Even When You Feel Broke)

Budgeting doesn’t solve everything overnight, but it creates structure in a time of chaos. She cut back on unnecessary subscriptions, made payment arrangements with creditors, and prioritized survival essentials like housing, food, and work-related costs.

It wasn’t glamorous—but it was effective.

The common belief that budgeting only applies once you have a financial cushion is false. Budgeting is how you build the cushion in the first place. It offers visibility and helps you make hard decisions with intention.

Recession-Proofing Your Finances

In an uncertain economy, financial flexibility is crucial. Rising costs and unpredictable job markets make it more important than ever to find ways to protect and grow your money.

A few of the practical strategies used include:

• Using high-yield savings accounts to earn passive interest

• Investing in short-term CDs with 3–6 month terms

• Exploring dividend-based investments for long-term financial growth

• Building emergency funds with interest-earning accounts

These aren't complex financial maneuvers reserved for the wealthy. They're accessible strategies that start with small contributions and smart choices.

Side Hustles, Tax Write-Offs, and Unexpected Income Streams

Entrepreneurship played a major role in the recovery. But not in the way you might expect.

One creative example included launching a business in her dog’s name. The goal? Cover pet expenses and create a tax-deductible loss while experimenting with business ownership.

It’s humorous—but it’s also financially savvy. Running a side hustle not only provides backup income, but in some cases, helps offset taxes.

The broader lesson is clear: everyone has a skill or interest that can be monetized. Whether it’s selling a product, offering a service, or simply learning how to structure your finances like a business, building a side hustle can provide financial relief and long-term growth.

You’re Not Alone, and It’s Not Too Late

Debt, shame, and silence often go hand-in-hand. But this story proves that the most powerful step you can take is the first one: facing your truth.

You don’t need to have it all figured out. You just need a plan, some persistence, and a belief that your current financial situation doesn’t define your future.

Whether you’re struggling with debt, trying to recession-proof your income, or just ready to break the cycle of money stress—your path starts with one honest look at your numbers and one decision to do things differently.

Want to hear the full story and more recession-proof money tips?
Listen to the full interview with Michelle Campbell on the So She Slays Podcast, now available on Spotify, Apple Podcasts, and YouTube.