My Debt Freedom Journey

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I've always been fascinated with money. How to make it, how to spend it, how to save it. But mostly how to spend it. The love-hate relationship with me and money started my freshman year of college when I received my very first credit card with a whopping $500 credit limit. Talk about excitement!

Looking back, I should have known better; however, I have come to realize that we only do better when we know better. As a freshman in college with no job and a credit card, it was a disaster waiting to happen. A complete setup from the start.

For 20 long years I struggled with debt until I made a committed decision to break free. Was it easy? Not at all. Was it worth it? Absolutely. Now, as a Certified Financial Coach, I have since turned the tables to help others break free too.

After paying off a ton of debt, I was interviewed by a popular financial blog. Check out the interview below to learn more about my debt freedom journey.

Can you share a little bit about yourself (family, occupation, etc)?

I currently reside in the Washington DC Metropolitan area. I hold a Bachelor’s degree in Business and a Master’s degree in Public Administration. After college, I landed several key positions in Human Resources Information Systems in private industry and the federal government.

After 10+ years in Corporate America, I decided to add another stream of income to our household and gave real estate a try. The very first rental property we sold netted us a profit of over $125,000. I was SOLD! I immediately went and secured my real estate license and the rest as they say is…HERstory.

Since that very first investment property in 2004, I became one of the top producing Real Estate agents at the brokerage I was affiliated with. I held monthly workshops for new real estate investors; and, I personally controlled over $2 Million in real estate from 2004 to 2007. I was living the life; so I thought. Then, the real estate market took a deep dive in 2007… and so did I.

What debts were you facing before your debt crushing began?

In 2007, I owed (not owned) $1,193,000.00 in mortgage loans. I also owed $45,700 in credit card, auto and IRS debt.

What led you and your family to a decision to break free of consumer debt?

Stress was taking a toll on my physical health. The stress of not being able to meet your basic monthly expenses was overwhelming.

I wanted to be FREE. Free to live the life that God ordained for me. Free to leave Corporate America at my choosing. Free to drop off and pick up my son from school. Free to give to others in need. Free to owe no one. I just wanted to be FREE.

What was your consumer debt payoff strategy?

I committed to cutting up ALL credit cards. No more credit cards…period.
I had to face the total amount of debt down to the penny and own up to it. This took me a while to face, but it’s absolutely critical.
I used Quicken software and tracked every dollar I spent. This allowed me to see where my money was going on a daily, weekly and monthly basis.
I created a spreadsheet to track all my debt balances, monthly payments and monthly expenses. It allowed me to see my debt reduction every time I made a payment.
Using the formulas in my spreadsheet, I paid off small debts first. They were less intimidating and helped to build momentum.
Consistent and truthful accountability. Get a mentor/coach. Someone who has been through the trenches and can guide you in the right direction.
Faith also played a huge part in my journey. I don't believe I could have paid off $1.2 million in debt without exercising some degree of faith.

Were you intimidated by the task in front of you? If so, how did you translate that intimidation into action?

Intimidated? $1,193,000.00 in mortgage loans and $45,700 in credit card, auto and IRS debt is beyond intimidating.

I turned my fear into action. I truly began to see that the mortgage and credit card companies were the ones profiting – not me. No matter how low the interest rate, no matter how many bonus miles these companies promise, at the end of the day, they are profiting; we are not.

What obstacles have you faced since starting your journey to debt freedom and how did you address them?

A layoff at that time was a huge obstacle. The unemployment income was a help but certainly not enough. Instead of allowing that obstacle to stop progress, I decided it was time to re-group and re-focus on the real estate business. Only this time….with NO DEBT!

Tell me about the avenues your family took to pay off debt (new income sources, less spending, sacrifices, etc).

I am a firm believer in tithing. 10% of any/all gross income was given as a tithe to my church. I also gave to other non-profit organizations that aligned with my values.
I sold as much of the real estate I owned. I even sold my own personal residence and moved into an apartment (saving over $1,000 per month). Many of the homes I owned were sold as Short Sale(s). I understand not everyone is amenable to this solution but I was on a mission to be FREE.
I moved to a different county with better schools. This allowed me to take my son out of private school (saving over $1,000 per month). I will admit, this was very difficult for me.
Bonuses, refunds and extra business income all went towards paying off the IRS and credit card debt.

How much debt have you paid off to date and when do you anticipate total debt freedom (excluding mortgage)?

From 2009 to 2013, I paid off over $45,000 in credit card, auto and IRS debt.

From 2009 to 2013, I sold and paid off over $1 million in mortgage debt.

I was finally free from $1.2 million dollars of debt by the end of 2013.

What advice would you give to the freedom chasers out there who are just beginning their journey to become debt free?

I firmly believe in tithing and giving 10% of my gross income. Consider donating to The Debt Free Life.
Focus on the consumer debt first. Mortgage debt last.
Don’t wait for perfect circumstances
Take one step and one day at a time
Don’t compare your life or circumstances to anyone else
Stop people pleasing and worrying about what other people may think
Expect and plan for bumps along the way
Act your wage
Surround yourself with others who have successfully beat debt. Get a mentor/coach.
No matter what…don’t give up

If I was able to dig out of this hole; so can you.

Founder, The Debt Free Life, Inc