From Credit Card Debt to Financial Freedom: My Journey to Becoming Debt-Free
Updated: Mar 12
As a child, my family didn't really talk about finances, and I never took a course in high school or college about finances. Therefore, everything that I've learned has been through trial and error and what I've seen around me. My credit card debt story began in 1999 as a college freshman - when I would sign up for credit cards just to get the free swag (gifts). Very soon, I would have multiple credit cards and know way to pay the full balance...only the minimum payments. I had not idea how this would affect my credit score, my finances, or my future. I had no idea how much interest was being charged or how much money I was wasting by only paying the minimum balance. I was just a young lady with no true knowledge of personal finance.
In 2005, my debt magnified! I moved away from home for a job opportunity, and within the first 2 months of moving, I was a victim of Hurricane Katrina. I lost a lot...so what did I do? I took out a SBA loan to recover and of course, got deeper into credit card debt to relocate.
In 2007, my debt intensified even more when I had my son. I instantly became a single parent and had to manage on my own. Although I had a full time job and 3 degrees at the time, I still had no true concept of money management and the importance of saving, spending less, investing, etc.
I spent nearly two decades paying the minimum payments on credit cards! Looking back on it, this is hard to believe, and it saddens me. I've lost money that I could have been saving for retirement, to build wealth, and for my son's future. It wasn't until July 1, 2018, when my mother passed away suddenly, that something inside me woke up. It finally clicked for me, and now I know what I had to do. I did some research and found Lending Club. I was able to consolidate my credit card balances (all 13 of them) and make one monthly payment. I set a goal to pay off my three year loan early...and I did. On August 4, 2020, I made my final payment. I was finally "credit card" debt free!
Debt Tracker Digital Download
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Check out My Debt Free Journey video on how I used Lending Club to consolidate my credit card balances to help simplify my finances and take control of my debt.
Hey everyone! In this video, I'm sharing my personal journey of how I was able to get out of $30,000 in credit card debt. I know that being in debt can be a really tough and stressful situation to deal with, but I want to offer hope and inspiration to anyone who may be going through something similar. In this video, I'll talk about the steps I took to pay off my debt, including budgeting, increasing my income, and reducing my expenses. I'll also share some tips and strategies for staying motivated and accountable throughout the debt repayment process. My hope is that by sharing my story, I can help others realize that it is possible to become debt-free with hard work and dedication. If you're currently dealing with debt or looking for ways to improve your financial situation, I encourage you to watch this video and join me on this journey towards financial freedom. Don't forget to like and subscribe for more personal finance tips and insights!
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Debt Diary
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FAQ
Q1: What is Lending Club? A3: Lending Club is a peer-to-peer lending platform that allows individuals to obtain personal loans to consolidate debt, pay for home improvements, or other expenses. Lending Club connects borrowers with investors who fund the loans, and borrowers make fixed monthly payments over a set period.
Q2: What is the importance of managing personal finances? A4: Managing personal finances is important to avoid debt and build wealth. It involves understanding how to budget, save money, invest, and manage debt. Having a good understanding of personal finance can help individuals make informed financial decisions and achieve their financial goals.
Q3: How can individuals learn about personal finance? A5: Individuals can learn about personal finance through various resources such as books, online courses, podcasts, and financial advisors. Many banks and credit unions also offer financial education resources to their customers. It's never too late to start learning about personal finance and taking steps to improve financial wellness.