She Strengthens

Breaking Free from Debt: A Liberating Journey

The thrill of swiping your credit card can be exhilarating, but the weight of debt that follows can be crushing. I know this all too well, having accumulated a staggering $3,000 in credit card debt during my three-month stint in Japan. The “I’ll deal with it later” attitude I adopted while living abroad soon turned into a harsh reality when I returned home to Canada.

A Cycle of Debt

As a freelancer, my unsteady income made it challenging to pay off the debt in one go. The interest continued to accrue, and I found myself using my credit card for purchases I couldn’t afford, blurring the lines between my old debt and new spending. It wasn’t until I landed a full-time job that I realized I needed to take drastic measures to get my finances back on track.

Turning Point: Lower Interest Line of Credit

The first step I took towards breaking free from debt was transferring my balance to a line of credit. By cutting my interest rate by 60%, I was able to slow down the accumulation of interest and finally start making progress on paying off my debt. This move also allowed me to visually separate my past debt from my current spending, making it easier to track my progress and stay accountable.

Reloadable Visa: A Game-Changer for Personal Spending

To tackle my personal spending, I turned to a reloadable prepaid Visa card. By loading my budget for eating out, shopping, and social activities onto the card each week, I ensured that I couldn’t spend money I didn’t have. This method made budgeting a breeze and kept me accountable. I used KOHO, a Canadian product that combines a bank, spending account, and money management app, but I recommend finding similar products available in your area.

The Power of Persistence

While increasing my income certainly helped, it was the additional steps I took to find what worked for me that ultimately led to paying off my debt. Whether it’s a spreadsheet, journal tracker, or money management app, there’s no one-size-fits-all approach to budgeting and debt repayment. The key is to keep trying new methods until you find what works for you.

Breaking the Silence

For a long time, I felt ashamed of my debt and didn’t dare talk about it. But opening up to loved ones gave me the confidence to create a repayment plan that worked for me. If you’re struggling with debt, know that you’re not alone. Every small step you take towards paying it off will bring you closer to financial freedom. So, take a deep breath, and start your journey today.