When January began, I knew it was time to address something I had been avoiding: my credit card debt. When I finally totaled it, the amount shocked me—it was worse than I expected. I owed $29,357, and my monthly payments were edging close to $1,000.
If I heard this story about someone else, I’d probably wonder, “How did that happen?” The truth is, it crept up on me. I wasn’t splurging on luxuries or living extravagantly. Most of the debt came from renovating the foreclosure I bought, which required significant repairs. Another large portion was from a once-in-a-lifetime trip to Italy for a family wedding.
I didn’t regret these choices, but the financial burden was becoming suffocating. I made a promise to myself to tackle the debt head-on.
Facing the Financial Reality
As a freelancer for over a decade, I’ve always felt a sense of job security in having multiple clients. If one client stops offering work, I can typically replace them. However, at the start of this year, my workload was unusually light, which magnified my stress about the debt. A drop in income could have made it impossible to cover even the minimum payments.
This realization forced me to confront how my choices were jeopardizing the financial stability I’d worked so hard to build. Over the past five years, I’ve focused on creating a steady career that allows me to live comfortably and save for retirement. It was frustrating to see how much money I was losing to interest payments when those funds could have gone toward securing my future.
Building a Plan to Pay It Off
Determined to take control, I decided to pay off the debt within 18 months. I briefly considered taking out a home-equity loan but dismissed the idea—I didn’t want to risk my home.
Instead, I created a budget. By cutting all nonessential spending and halting any automatic charges to my credit cards, I aimed to redirect every dollar I could toward paying down the balance. My initial projections suggested it would take a year and a half, and the timeline forced me to reconsider every expense.
A Stroke of Good Fortune
For the first few weeks, I stuck to my plan. Then, in February, an unexpected opportunity arrived. A former client reached out with a large project they needed completed quickly. At first, I thought it might add about $5,000 to my income—a welcome boost for my debt repayment plan.
As the project grew in scope, I worked tirelessly through the month. By the end, I had earned nearly $25,000—significantly more than I usually make in a month. I used every penny to pay off my credit cards.
Looking Ahead with Clarity
Clearing that debt felt like a second chance. With only $5,000 remaining, I’m now confident I can pay off the rest this year by sticking to my budget. This experience has solidified my commitment to building a stable financial future.
I plan to increase my retirement contributions and tackle the rest of my student loans next year. The stress of carrying debt taught me to prioritize long-term security over short-term satisfaction. Moving forward, I’m committed to fitting major expenses into my budget without relying on credit cards.
Now, I feel like I have a clean slate—a foundation for the financial future I’ve always wanted.