No Strings: My Debt Free Journey & Reflections
ONE: Introduction
Today is March 19, 2021. On this day I’m telling my past and future self “HEY DUDE — YOU ARE DEBT FREE !!!!” To quote an Avengers movie, “THERE ARE NO STRINGS ON ME”. I am liberated with a rush of happiness flowing through me. How did I do it, and what did I learn along the way? I hope that I can inspire those who read this. I also hope that the advice given can apply to you, no matter your current situation. Always remember that when people doubt what you can do — you always have the willpower to succeed. Disclaimer: I am not a professional financial advisor and this article is opinion-based. Always do your due diligence and seek a professional for guidance.
TWO: The Winds of Change
It was the Fall of 2017 — for many reasons I was wandering with depression and feeling directionless. Debt was piling up and becoming an albatross in my life. I remember at one point sitting down, taking a breath, and reviewing my finances. Reviewing the stupid decisions I had made in the past and the hill I had to climb. Yes, I was a real dummy back then, having the following balances:
- A $5,000 Personal Loan that I finished paying around 2016 (an unnecessary decision which showed how I was not in control of my finances AT ALL).
- Five Credit Cards with a balance of $24,000 spread across each (I played the “balance transfer” game across cards to keep payment current, which hurt my credit score).
- $34,000 remaining in Student Loans (Drew University is a private college, so the loans were a mix of both Private and Public Loans).
With the credit cards and student loans, I was facing a balance of $58,000. This may not seem like a whole lot…but can be when you’re spending recklessly. I don’t remember things I purchased and wasn’t making headway on minimum payments. I needed to change directions and develop a plan. I started watching YouTube, reading personal finance articles and books, and listening to podcasts. Three-and-a-half years ago was the moment my life changed.
THREE: A Marathon, Not a Sprint, to Paying All of this Crap Off
Alright then! I know what to pay off, but it is not that simple. In Fall 2017 I was four years with my part-time job, and six years into my full-time. I worked part-time to have more money because I wasn’t (or thought I wasn’t) making enough money. For total gross income, I was making north of $60,000 combined. In our glorious United States of America, this does not seem like a lot. Celebrities and athletes we see on TV making millions and peer pressure from social media gives us the perception of being poor. We soak in the idea that “if you are not a six- or seven-figure baller, then you are small fish in a pond”. Well, in certain areas of the world, $60,000 makes you rich, point-blank. What matters is how you use your income to manage and take back control of your life. Block out all the noise and stay focused.
I’m a big fan of Dave Ramsey and his “Baby Steps” (Google it.). His videos helped to start my momentum. I began with putting money aside in case of an emergency. Another advantage I had is that my jobs paid out on alternating weeks, which was a HUGE advantage for me. Why?
- When we get paid bi-weekly, we have to manage our lives in two-week, 14-day phases, which can be a challenge sometimes. This is why making a budget is important so that you can control your finances for the month.
- My approach was different: I got paid every week and was able to adjust life every 7 days, which allowed me to be a bit riskier in terms of paying down debt. Everyone’s situation is different, so you have to apply your own due diligence once you start your journey.
I then used the “debt snowball ” by paying down debts in order of smallest to largest. I chose to tackle the private student loans first since that was the smallest balance. I aggressively made payments and on August 10, 2018, was finished. Next up were the credit cards. Unlike student loans, credit cards have higher interest rates which may cause you to fall into the “credit card trap”. Again, I chose to be aggressive- and on October 4, 2019, I was finished. I still use credit cards sometimes when going grocery shopping, to take advantage of the cashback rewards. A good rule of thumb is to always pay your cards off at the end of the month — or don’t use them at all.
FOUR: 2020 and Early 2021: The Final Sprint is Never Easy
It’s January 2020 — with the loan and credit cards out of the way, I still had work to do to the tune of about $24,000 left to pay off. In February and March, the entire world shut down due to the Coronavirus (COVID-19). People lost their lives to this disease and businesses were shuttered. The way in which we shop, eat, work, and congregate was altered radically. Our Black Brothers and Sisters were losing their lives to police violence which caused many of us to rise up and protest like never before.
I was furloughed from my part-time job for six months while my full-time shifted to telework. I attended monthly therapy sessions for personal reasons. At one point, I even contracted shingles…SHINGLES!!! The stress of life was finally getting to me. Life is never a cakewalk, but you have to always stay focused and push through.
This period of transition allowed me to hunker down and focus. I began to journal, cook and read more on a regular basis — hobbies that I now enjoy. I learned to live life without excess and discovered that I do not need a lot to survive. Money usually used on video games, clothes, and restaurants was thrown at the loan. Stimulus checks, work bonuses, and anything extra went straight to the loan. From January 2020 to March 2021, I paid off about $25,700.
My aunt passed suddenly on March 5th, 2021. She was fighting through Parkinson’s disease and cancer, which she had fought through for the last few years of her life. Even to this day it still does not feel real that she is gone. She was one of the pillars of my life and I remember always calling her to tell her how close I am to debt freedom. I regret not finishing before I could tell her one last time, but I know her spirit helped me in that final push.
The Stimulus check that arrived for many Americans was what I needed to get over the hump. I made the final payment on March 17th, 2021. I logged onto my account that Friday and the balance read “$0.00”. ZERO, ZILCH, NADA…WAS THIS REAL? WAS I FINISHED? AM I REALLY DEBT-FREE? Three-and-a-half years of the grind completed. A lot of lost sleep, sacrifices, and stress led to joy and accomplishment. I was a free man…there are no more strings on me.
FIVE: What I Have Learned and Who to Thank
I have learned much about the power of personal finance, family, faith, and friendship. I thank my family, friends, local Church, the entire Dave Ramsey & Co., Clever Girl Finance, the Money Guy Show, Wallet Win Workshop, Minority Mindset, Ramit Sethi, Kevin O’Leary, Graham Stephen, and many more websites/blogs/personalities. A book that I went back to often is Lysa Terkeurst’s It’s Not Supposed to Be This Way. It’s a book that melds her experience with disappointments in her life with the strength that God can deliver to us through those moments. I have kept my dedication to my cause strong with faith in God to push through when my finances were low. I am a testimony and cheerleader for those who are on their own path to debt freedom.
SIX- My Advice
What would any inspirational read be without providing some personal advice? To preface, I am in no way, shape, or form a professional financial advisor, so please do your own due diligence. Take a deep look at your financial life and assess from there. It’s never too late to get your ball rolling.
- REVIEW: do a deep Review of Your Life: what is your income, side hustles, hobbies, and net worth? Think about having a positive net-worth for yourself and what your future could look like. Seek out an accountability partner. Use your gifts and talents to bolster your financial standing. Pray about it and have faith that you can succeed. Place all your debts out in the open and get ready to work.
- GRIND TIME: save money for an emergency (amount depends on if you are married, have kids, dependents, etc). Create the best type of budget for you, keep your monthly bills current, and continue to pay your tithes. Throw everything else at your debt; as you pay off the smallest balance, move on to the next, and so forth. No cut-cards or gimmicks.
- “THERE ARE NO STRINGS ON ME”: you’re debt-free, so start saving more money, including for retirement. Learn about investing, real estate, multiple avenues of wealth building.
- SITUATIONAL SAVING: 4a. Marriage, 4b. Home, 4c. Children & College, 4d. Vacations and Travel 4e. New Car (or Bike, Boat, or…)
- LIVING YOUR LEGACY: pay off your home(s), grow your business(es), donate to charities, volunteer, and continue learning and growing in your self-development
Let this serve as a baseline to get you thinking in the long term. Delayed gratification is much more important than impulse purchases, wants, and needs. Make sure to buy experiences instead of luxuries. Remain conscious today but always think about tomorrow. We must prepare for retirement so that we are not working for the rest of our lives. Don’t depend on the government for constant stimulus checks, unemployment benefits, and handouts. Control your own future while living, giving, and serving in the best way you can. It’s time to use your God-given talents to transform your legacy and become an agent of change for those around you.
Now, it’s time to go to work.
- Laurel “Rell” Simon
