Monica’s journey to becoming debt-free

$43,857 — that was the mountain of high-interest credit card debt Monica* faced when she realized she couldn’t dig herself out. No matter how many side jobs she juggled — cleaning offices, pet sitting, babysitting, and baking pies at a local restaurant — she couldn’t make headway. “I was feeling suffocated,” Monica shared. She and her husband had always lived within their means, but the costs of college for their two children upended their finances. They made a family deal: The parents would cover half of the college expenses, and the kids would pay the rest through scholarships, grants and work.

Monica, who came out of college $27,000 in debt (which she repaid), was determined her children would graduate debt-free. So, when an enormous textbook bill arrived, or when she couldn’t make her part of tuition, Monica pulled out a credit card.

“I really thought I could dig us out of the credit card debt,” she said. “I’m not afraid to work hard, but I just couldn’t do it. We kept getting buried by the college costs.”

When Monica calculated the numbers, the reality hit hard. Minimum payments meant she’d be in debt for 20 years. Years later, her children, now graduates with stable jobs, had no idea their mother was still paying for their college education. Adding to the stress, Monica and her husband of 26 years were divorcing. She wanted to start her new life with a clean financial slate, but she felt stuck.

Monica connects with us

Through her employer, Monica discovered LSS Financial Counseling and its Financial Choice service, which partners with organizations to offer financial counseling and debt management support.

“You have to be able to ask for help,” Monica said. “I wasn’t sure what to expect, but I knew I had to do things differently. I couldn’t keep going like this. LSS Financial Counseling treated me with a lot of dignity and respect. There was no shaming.”

Monica’s financial counselor helped her create a realistic budget and develop a Debt Management Plan (DMP), which reduced her interest rates — one as high as 19% — and consolidated her debts into a single monthly payment of $1,700. While that payment was steep, it was manageable, and most importantly, it allowed her to see progress.

Persistence and dedication pay off

The road wasn’t easy. Monica worked multiple jobs, drove unreliable cars, and sacrificed much of her free time. “There were months when it felt like I wasn’t making any progress,” she admitted. “But every time I made a payment, I reminded myself I was getting closer to being debt-free.” In just three years, Monica paid off all $43,857. “I couldn’t believe it when I made that last payment. It felt amazing. It’s hard to even put into words.”

Today, Monica’s life looks very different. She purchased a reliable car — paid for in cash. She qualified for a mortgage and bought a home the same month she made her final debt payment. And most importantly, she accomplished her goal of ensuring her children could start their adult lives without debt. Monica’s success is a testament to the transformative power of LSS Financial Counseling. “What LSS Financial Counseling does is remove obstacles, so people can do more with their lives,” she said. “Being debt-free means having the ability to say ‘Yes’ to opportunities without thinking, ‘I can’t afford that.’ I have options now.”

We’re here for you

If you are facing debt, you are not alone. With small, consistent steps, you can gain the financial freedom that comes from paying down debt. Call 888.577.2227 today to schedule a free, confidential appointment with one of our trusted, nonjudgmental financial counselors.

*At Monica’s request, we’ve changed her name to protect her privacy.