Today I’m sharing how I paid off my debt in one year. There are lots of creative strategies to reduce debt and the way I did it wonāt necessarily work for everyone, but I thought Iād share it in hopes it inspires anyone who needs a nudge to take action or reach out for help on tackling debt.
Quick backstory: how I got into debt
Throughout my mid 20s and early 30s I got into (and out of) debt a few times. I racked up my credit card to $10K+ balances a couple of times, and also ended up with a balance on my line of credit (LOC) of about the same. How did I get into debt? Well, I didn’t have a shopping addiction per se, but I did have a bit of an addiction to personal growth and development! To be fair, most of the debt I accummulated was in the pursuit of building a business; unfortunately, that business never quite managed to flourish financially so I had to figure out other ways to pay off the debt.
The reason paying my debt off became such a priority is because my partner and I were talking about starting a family and I was not comfortable with the idea of getting pregnant while carrying as much debt as I had. I also did not want my financial burdens to fall into his lap to pay. The desire to have a child became my strong ‘why’ for prioritizing debt repayment.
DID YOU KNOW? Canada’s household debt is some of the highest in the world
In 1980, the ratio of household debt to personal disposable income was 66%; that ratio recently passed the 150% figure (Statistics Canada 2011). This means that, in aggregate, households owed more than $1.50 for every dollar of disposable income. More recent estimates put household debt at 185% of income. Debt is a serious issue and one of the things I am passionate about helping Canadian indiviuals and families to tackle so that they can have more ease and less stress, and ultimately be able to build a secure and exciting financial future.
Needless to say, if you are currently in debt, you are among the majority of Canadians.
So what are the options for paying off or otherwise dealing with our debt?
First I’ll share how I paid off my debt in one year, then I’ll share 4 different strategies to handle debt in my next blog post
Here is what I did to pay off $16K in debt in one year:
Step 1: Increased my income. I took on full time work to supplement my income which was low at the time (and the reason I had gotten into debt in the first place was simply not enough cashflow coming in). This also meant that I would be eligible for an EI maternity leave if I got pregnant.
Step 2: Shopped around & found a credit card that was offering a 0% balance transfer for 10 months. The transfer fee was modest.
Step 3. I transferred the balance from my main credit card over to the new card; it had a balance of $7K & I had 10 months to pay, so I needed to pay $700/month.
Step 4: Borrowed money from my partner. I owed about $9K on my line of credit with interest at 7-8%. My partner had a healthy savings account so he suggested he pay off the LOC and I repay the savings account monthly until we recouped the $9K. To pay this off in a year I needed to pay $750 per month.
Step 5: For the next year, I kept expenses low and put $1450 per month towards debt. That didn’t leave any room for savings or other big purchases, but it was 2020, so we weren’t doing much anyway. AND, we got pregnant in Spring of 2020 so I spent most of the year lazing around, reading books and napping anyway š
Step 6: Our baby boy arrived Nov 29, 2020 and I made my last debt payment in Dec and was completely debt free!
ā ā ā ā ā ā ā ā ā
The lessons for me in this experience were:
Detaching from any self-judgement about the numbers (how much debt I had, or what my cashflow had been)
Recognizing that I had to increase my cashflow to make it work
Being okay with receiving financial help, especially when it made so much sense to save on interest. I had to let go of my pride and independence and surrender to the help being offered by my partner.
The power of priorities: since I wanted so badly to start a family without debt, paying this off truly became my priority and made it easy!
Key takeaways from my story that might help you on your journey to being debt-free
It is SO MUCH EASIER to pay off debt when you minimize (or eliminate) the interest! It means that every dollar of every payment you make is actually going towards what you owe, rather than just servicing the cost of interest to your lender. As I learned, there are creative ways to minimize interest! Whether it is through a balance transfer situation or just calling your credit card company or bank and ASKING for a lower interest rate. Don’t just assume you have to keep paying whatever rate youāre paying.
Having a partner or supporter is essential in creating a debt repayment strategy and sticking with it. In my case, I was able to use my romantic partner as that person. My debt repayment journey happened before I found myself getting trained/licensed and working in financial services, but if I was doing it all over again I would likely seek professional help and guidance. Sometimes money conversations are tough with a spouse and that’s where a third party can step in and be a helpful resource.
If you are eager to pay off debt, I’m always happy to chat and can offer guidance, support and accountability. As well as tangible solutions depending on your specific situation. Feel free to reach out for a judgement-free chat!
Was this blog post helpful? I’d love to hear your comments or feedback below!
Itās 7:09am and Iām pressing snooze on my iPhone.
People describe me as driven and motivated but if they could see me at home they might think differently. I love sleeping. I can go to bed at 10pm and sleep until 7:30 am, no problem. I also enjoy tinkering around the house Ā – tidying, watering my houseplants, organizing the pantry, cooking, cuddling with my dog or my man, rearranging papers, vacuuming. I easily get lost in the day to day tasks of life. Ā
And then I feel guilty about it.
Why?
Because I run out of time to do the *important* tasks on my to-do list. Another day, week, month has passed and what has been accomplished?
You’re probably like me.
You have big goals.
You have big dreams.
And it feels like they are slipping away while you fold laundry or water your garden.
While these mundane tasks bring us a brief feeling of satisfaction, a sense of order and control over our lives, we know deep down that we are procrastinating from the important work we could be doing.
Maybe we do it to be normal.
Maybe to let our mind rest and unwind.
Because we like organization and a clean space.
{We need clean clothes to wear, right?!}
Or maybe weāre scared of the chaos and uncertainty that comes with actually accomplishing something of substance. Weāre terrified of being immersed so deeply in our work {our mission} that the laundry, the bills, and the dog hair pile up.
We want to achieve massive things, yet we want our lives to be organized, clean, and uncluttered.
Can both desires coexist? {Iāll keep you posted š }
One thing that never changes for us – whether we are in a state of motivation and production or guilt and procrastination – is our drive to build/create/achieve. Itās innately a part of us and never goes away (in my experience).
This brings me to a recent reading I received from my intuitive and talented aunt Kara. She has studied astrology and numerology, as well as intuitive metaphysical practices and tarot reading for many years. She confirmed what deep down I already knew: my life path and my soul urge are in alignment and have to do with building something. In numerology this is represented by the number 8.
#8: influence, manifestation, personal power, material freedom, independence, leadership, construction of systems, organization, management, entrepreneurship…
[Sigh. It makes sense. Thatās why I have trouble sitting around and doing nothing all weekend.]
Knowing that my drive is innately part of me means I can exhale and carry on. And I can also enjoy my downtime, because I know that I canāt work hard 24/7, it wouldn’t be sustainable.
Another pivotal moment in my reading was when I pulled the tarot card āpostponementā {I had been asking for guidance as to why I was procrastinating}. Duh. The literal meaning of this card was very fitting, obviously, but the deeper meaning was multi-faceted. The place where I feel stuck is actually right where Iām supposed to be. Itās part of my learning, my process of getting where I want to be; without the so-called āstruggleā, I wouldnāt grow and become who I need to be to get where I want to go.
How to move past the guilt
I believe having a deeper knowing of ourselves can help us move past guilt and into joyful creation and productivity. It starts with asking ourselves why we are avoiding the things we say we want.
Is it fear?
Lack of clarity?
Laziness?
Resistance?
For me, I have this burning desire for freedom, and yet I am becoming more and more certain that the path to freedom lies within structure. My inner freedom junkie rebels and resists against my wiser instincts which tell me I have to create systems, timelines, and structures in order to be free. I know that without structure I will never be able to deliver the value I hope to bring to the world. Without deadlines and deliverables I wonāt create anything of substance.
Without providing value and creating something meaningful I wonāt have a successful business and my business is the key to my long term freedom (at least the financial and fulfillment parts of freedom, for me).
Along with recognizing my own patterns of behaviour, my self-knowledge was deepened by understanding my astrology and numerology. It is not an exact science, however the insights were so uncannily accurate that I canāt disregard them. I feel a sense of calm clarityĀ since discovering these aspects of myself and my life path. {Connect with Kara if you want to learn more,}
As much as I love learning from others… an even bigger lesson for me is to TRUST my intuition. Habitually, IĀ turn to experts for answers and guidance. Thereās nothing wrong with this approach, but what is right for themĀ may not be quite right for me or you. Exploring my intuition is a semi-new passion for me and I look forward to sharing my discoveries in future blog posts. I amĀ realizing how very important it is to listen to myĀ inner knowing and to understand how my intuition expresses itself. Ā I am also cultivating a level of trust in the timing of the universe.
Where you are in any given moment is exactly where you need to be. Reminds of Eckhart Tolle:
“Life will give you whatever experience is most helpful for the evolution of your consciousness. How do you know this is the experience you need? Because this is the experience you are having at this moment.”
Ultimately, in my case it also comes down to some pure discipline. This morning I DID NOT hit snooze. Instead, I popped out of bed at 6:15am, did a quick meditation and sat down to finish this blog post.
Journals and workshop/seminar notesā¦Ā 100%. Nailed it.
I’m an information junkie and I always have at least one notebook on the go (usually 2-3) for different things. So what the heck do you do with a notebook thatās filled with random musings, to-do lists, moments of inspiration, and potentially useful notesĀ from meetings or conference calls?
Last month was a big month for transitions. After house sitting for four months we hunted down a dog-friendly rental homeĀ to hold us over until we find the right property to buy. The place we found is super cute, and by cute I mean small. Really small. I donāt know the exact square footage but I do know we have minimal space for storing anything that isnāt absolutely necessary to our lives.
Have you noticed how no matter where you are, your life expands or contracts to fill the available space?
Itās a bit like how most of us manage our finances. When your income increases, so do your expenses until everything is right on pace and thereās no extra āspaceā in your budget. Ā
Knowing we were moving into a much smaller space, I finally picked up (and devoured) the book, The Life-changing Magic of Tidying Up by Marie Kondo, which I had heard about numerous times. Her suggestions for tidying were super helpful.
What I realized throughout the process is how incredibly FREEING it is to let go of unneeded things.
In Feng Shui it is highly recommended to declutter your space so that energy can flow freely and I had been wanting to do this properly for a long time.
Using the process outlined in Marieās book, I was able to downsize drastically. I recycled multiple boxes of papers, gave away my filing cabinet, donated several bags of books and clothing and disposed of several garbage bags worth of unneeded items. What about those boxes full of journals and seminar notes? I flipped through many of the journals briefly and if a page caught my attention as being valuable I snapped a quick photo of it on my phone. Then most of it went in the recycling.
TheĀ key realization for me in understandingĀ this hoarding tendency was that me holding on to old journals and notes was done out of fear, fear that I would need to refer to these documents in the future and would regret throwing them out. TheĀ truth is, the information I’ve used and assimilated into my life is part of me now, and if I havenāt internalized the information, then I likely donāt need it at this time and itās okay to let it go.
If youāre anything like me, you probably have some clutter lurking in your space and maybe, like me, you are daunted with the idea of dealing with it. I suggest picking up Marieās book and reading it all the way throughā¦ but in the meantime, here are my key takeaways from the book:
1. āMarathon tidyingā is the only way to effectively de-clutter, for good
In Marieās words, until you have completed the once-in-a-lifetime event of putting your house in order, any attempt to tidy on a daily basis is doomed to failure. Ā You have to actually go through all your belongings within a small time frame in order to make real lasting progress towards a simpler life. For me, moving was the perfect time to do this. Since we had been house-sitting, most of our belongings were already boxed up. As we moved and began to unpack, I could fairly easily tell which things I was excited to unpack and which things I had a sinking feeling about: Oh, that thingā¦ hmm what should I do with that thing?!
2. Thereās a specific order in which de-cluttering & discarding should occur
Itās really hard to throw out photos and other items that have a memorable or sentimental quality to them, even if you never use or look at them. Marie recommends starting with clothes, then books, papers, miscellaneous items, and finally things with sentimental value. I followed her suggestions and it worked like magic. That doesnāt mean it was easy-peasy, it just means I actually managed to get through everything.
3. When deciding whether to keep or discard something, ask yourself if an item āsparks joy;ā if the answer is no, in almost every case, get rid of that item
Oh. That seems pretty easy, right? It is, IF you can really tune in and trust your instincts. When it came to clothes I had to ignore the voice of others, who might have complimented an article of clothing or an outfit, and really ask myself if it was something I enjoyed wearing. You know when you are packing for a trip and you only bring your favourite items? Imagine if getting dressed everyday was like that. You only had to choose between things that you love and never compromise with something that you only kinda like. This part really is life-changing.
In other cases the whole āspark joyā idea was really challenging. I had a few sentimental items that bring joy, but I never use or look at them so I decided it was time to let them go. And then thereās the things you have to keep, like old tax documents, which may or may not spark joy but are a necessary fact of life.
4. After youāve discarded all the items you donāt need/want, then you must find a place for everything to live
The organizing part of tidying becomes much easier when you have way less stuff. This seems like a no brainer, but the funny thing is, when most people (including myself) set off to organize a certain part of our home it usually means going and buying baskets or bins or additional closet organizers; which just end up being filled with stuff they (I) never use. Marie has a fun approach to organizing and it is to tune into each object and your home because items know where they want to live. Intuitively, youāll be able to find a place for everything, and it usually does not require any additional storage.
Another significant takeaway was folding my clothes differently so that I can now see everything that lives in a drawer. I donāt know if I mastered Marieās folding technique but what I did seems to be working! And the best part is, Iām actually putting my clothes away every day.
5. Treat your objects with the same love, care, and gratitude that you would your loved ones
This one caught me a bit by surprise, but now that I think about it, I love the idea of it. I really am so grateful to the objects that bring me joy and allow me to live my life the way I choose to. Just saying a few kind words to your items as you put them away {thanks for doing such a great job!} seems a bit wacky at first, but feels really good when you start doing it. And I can already see how it will be easier to manifest the objects I want when theyāve got such a lovely environment to come into.
I hope these tips make it easier for you to dive into the process of tidying, it really is worth it!
Iād love to hear your thoughts, ideas or strategies that have helped you create more space in your space. Please share in the comments below.
Iām 30 years old, soon to be 31 and itās time to grab life by the balls and do what Iāve been saying I want to do for YEARS.
Hereās the thing: over five years ago I set a goal to be financially free by age 30 so that I could live life by my own design, raise a family as a present parent, travel the world, help people, make choices for the good of the planet, and leave a legacy of love and meaningful work behind me. Over the last five years or so, I have invested significantly in personal growth, invested in my physical well being, learned from incredible mentors, read lots of books, attended conferences, trainings, seminars, done all the personality profiles and strengths assessments that have come my way and have started dabbling in meditation, pendulum and other intuitive modalities. I have intentionally formed new habits, rebelliously quit those habits, and continue to strive towards my ideal daily routine. I have achieved successes and then sat back complacently and watched things crumble.Ā
The long and short of it is, I havenāt yet reached my goal. I guess you could say I failed. But, more importantly, this is what Iāve learnedā¦
I will never give up.
I canāt live a life of complacency.
Now that I know whatās possible.
Now that Iāve seen the results of others on this path.
Now that I have tasted freedom…
I canāt go back to life as it is for many people. As challenging as it may be to forge a different path and as much confusion/judgement/rejection as I may have to face – I just donāt see any other way of living my life.
I’ve wondered many times whether Iām cut out for this journey, or whether Iām spinning my tires, wasting my time. Am I meant to be an entrepreneur or should I just content myself with being the best damn employee someone could ask for?
Iām sure Iām not alone in this thoughtā¦
Its easier to get things done when someone else is expecting you to. Its easier to meet a deadline when itās someone elseās deadline rather than your own. Its easier to show up when you know you have to, versus just because you want to. (I know it sounds weird, but itās actually true). I am a people pleaser by nature – so what Iām really asking myself these days is how can I untrain this part of myself, or transmute my desire to please other people into a desire to please myself.
What if I worked as hard for myself as I do for others?
This is what I’ve realized and decided: I donāt need more courses, coaching or guidance. I already know everything I need to know to commence my journey. Yes, there may be technical questions or details here and there that I need help with but when Iām really honest with myself – I know enough about my strengths and weaknesses, enough about the theory of what Iām trying to do (create freedom) and enough about what needs to get done.
All that remains is to do it.
So Iām going within and asking my inner mentor/spirit/the universe for guidance and for help:
āI get it. Thank you. I am enough. I have enough knowledge, resources and time to get this job done. I donāt need to wait for anyoneās approval to move forward. The time is whenever I decide it to be. The time is right now. I am as competent as I need to be. Ā I have the resourcefulness inside me to overcome any challenge. If I come across a block, I trust my ability to solve it or ask for help.ā
Now that I am ready – here is what I am asking for from you, Universe:
I am asking for the 3-4 people who are ready to go on this journey with me NOW.
I recognize that I need accountability and I need the power of a mastermind. There is nothing that holds more power than minds that are on the same wavelength and working with synergy. If I canāt show up purely for myself than maybe I can show up for others who will hold me to my word.
This is exactly who I am looking for, and who I promise to BE (we canāt ask from others what we are unwilling to do/be ourselves).
a person who:
craves freedom; time freedom, financial freedom, and the well being to enjoy it, and is COMMITTED to achieving these things in the next year
understands the mechanisms of creating freedom or is OPEN to quickly learning it (residual and passive income, not being in a time-money exchange model, leveraging money and people to get work done, not having to do it all yourself, empowering others with the same level of opportunity, outsourcing where appropriate)
keeps their word; if they ever break integrity with their word they acknowledge and rectify it
is willing to show up and do the work; willing to do whatever it takes
is ready to go NOW
is able to take care of themselves so they donāt burn out
is communicative and willing to share ideas, collaborate, mastermind and contribute
wants to build a high tech, high touch business utilizing principles of online business with the essence of a real human-connection community
wants to build/add a relationship marketing business to their financial portfolio because they want to help other people create freedom too
is a creative problem solver
takes responsibility for themselves and their actions
is willing to invest time and money in the growth and development of their business
is a lifelong learner
is honest
is heart-centered
is intuitive, or interested in developing their intuition
has read or is willing to read the following books:
Napolean Hill – Think and Grow Rich
Don Miguel Ruiz – The Four Agreements
Eckhart Tolle – A New Earth
Tara Mohr – Playing Big
My vision for this Freedom Circle Mastermind
weekly or bi-weekly meetings by phone or in person depending on our respective locations
targets/goals that are set with time frames
celebration of achievements
masterminding of problems/obstacles
an introductory session where we map out the next year of strategies and milestones
If you feel you would be a good fit, please send me an email with āFreedom Circle Mastermindā in the subject line to aimee at befreetribe.com.
Have you ever examined your thought patterns and habits and gotten really curious about where they come from? Iāve recently become aware of one of my habits that comes from a scarcity mindset and I am now *consciously* shifting towards the opposite, abundance-based approach instead.
But let me back up and start at the beginning.
I was a weird child. I didnāt like chocolate and I could make my halloween candy last until Easter if not longer. My friends couldnāt understand it; their candy lasted maybe a week. It might have been partially because I didnāt have a sweet tooth or the fact that my dad became diabetic in my childhood and I became more aware of sugar, but the fact isā¦ I would save things, and not just candy. I would find myself holding onto gift certificates for a really long time, almost to the point where they would expire.
I now recognize this pattern as coming from a place of scarcity: my thinking: āI better hold on to this {candy, gift certificate, bottle of wine, box of chocolates, special olive oil, whateverā¦} and save it for a special occasion because it may not easily come into my life again.ā Woah! Talk about not sending the right message to the universe.
The other interesting thing about this discovery is that my feeling of needing to save and hold onto things was adding to the amount of clutter in my life. From what Iāve learned about feng shui (thanks Kate Northrup) clutter blocks the flow of abundance. When we hold onto things for a long time they become clutter both physically and mentally. Not only do they sometimes take up physical space, but we also need to use a small part of our brain to remember them and keep them on the back burner, until the time is ājust right.ā
Getting rid of clutter creates space for energy and abundance to flow.
So what am I doing differently now? What does abundance look like?
The chocolate that arrived in our stockings on Christmas got devoured in January. It looks like using up all the bath salts that I got for Christmas by the end of January, yeah! It means that I went and picked out some new lingerie and used up the gift certificate I got from my bestie (high five, bestie!). It means that we lit our new beeswax candles immediately after bringing them home a few weeks ago. It means that I am contacting the people who have offered me things (complimentary sessions, etc) and taking them up on their offer, with thanks!
My attitude now is that I might as well enjoy the nice things that have arrived in my life and show the universe that I appreciate them and trust thereās plenty more to come!
