One Woman's 18-Month Journey to Pay off $30,000 in Credit Card Debt

• Author: Joanna Crona
• Posted: 2024-09-23

One of the most important keys to freedom is becoming debt-free. That freedom may feel priceless, but it actually has a price tag attached to it in the amount of total debt a person has. For the Minnesota talk show host and businesswoman Lori Flaquer, that number was $30,000. That was the number she came up with when she sat down to look at her debt after being inspired by reading “The 4-Hour Workweek.” She was inspired by the mobility and freedom the book promised, and she knew that her debt was a barrier keeping her away from reaching her dreams.

When Flaquer sat down to take a close look at her financial reality, she realized that she didn’t just owe $30,000 to her creditors. The total was climbing higher all the time due to the outrageous 30 percent in interest she was paying on her credit card debt. She was in a rotten financial situation like this even though she ran her own successful business specializing in helping other people reach their entrepreneurial dreams.

Flaquer always thought of herself as a dreamer. She was an idea person who was great at seeing the big picture, but she had always struggled to deal with the smaller details. In her mind, credit card bills had always been small details that she didn’t need to worry about. She often forgot to make payments on-time, and some months she failed to make payments at all. That kind of thinking is what led her to racking up a $30,000 balance on credit card accounts charging as much as 30 percent interest.

After being slapped in the face with such a large number, Flaquer realized that she needed to make her credit card debt her primary enemy. She started by calling all of her credit card companies to ask for lower interest rates. While none of them were willing to offer her anything, a few told her to call back in six months after making all of her payments on-time to ask again.
 

The Snowball Strategy

In order to pay off her debt without being overwhelmed by it, Flaquer decide to implement a snowball strategy of paying down her debt. Using this method, she started paying off her credit card balances from smallest to largest, and she made several times the minimum payments on every one that she could afford to. As soon as she would pay off a small balance completely, she would shift the money she was using for that balance to further pay down her larger balances.

This method is incredibly effective when it comes to paying down debt quickly. To help herself pay off the debt as quickly as possible, Flaquer looked for ways to save money in her budget. She already drove an inexpensive car, and she began to turn off and unplug all of her electrical devices when they were not in use. She also refrained from buying any new clothes or other luxuries while she was paying off her debt.

Even though she made several months of on-time payments, all of Flaquer’s credit card companies refused to lower her interest rates. Instead of letting it get her down, Flaquer used this as further motivation to pay off her remaining credit card balances as soon as possible.

Within 18 months of starting here journey to financial freedom, Flaquer was calling the credit card company that held her last outstanding balance to make her final payment over the phone. It was an incredible accomplishment that filled her with pride.

More than two years later, Flaquer is still free of credit card debt. She uses her cards when she gets a discount using them or if she is making travel reservations, but she always makes her payments in full and on-time every month to keep her credit in good standing.
 

No Little Spurges

Flaquer finds that they key to financial responsibility is to avoid the little splurges like expensive coffees and trips to the bar. Instead, save money to make big purchases like trips to exotic locations.

During her journey, Flaquer found that surrounding herself with positive people helped to keep her on-track. Other can do the same by looking for local and online support groups for people who are looking to pay off their debt.