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Check out the latest debt-free story from our video series, Turning Point.
Like many people, Ruth got acquainted with debt in college. She took out student loans to help pay for school because that’s what everyone else was doing. “And that’s how easily you wander into debt,” Ruth said.
As a single mom, she struggled to make ends meet. She brought in $1,000 every month, but $812 of that was going toward debt payments.
Ruth found extra income eventually, but it never seemed to move the needle. Even when she did pay off a credit card, something would happen and she’d swipe her way out of another emergency.
“Once you get back into it, you are kind of back into the cycle,” she said.
Ruth became buried under her monthly payments. One day while in a heated conversation with a creditor, Ruth decided bankruptcy must be the answer. She was able to stop the growing interest and establish a payment plan to help her pay off the debt. Still, she was upset and embarrassed, and vowed to get this debt off her back.
“This is it,” she thought. “I am going to pay this off. And I am never, ever going to take on a debt again.”
It was then Ruth discovered Dave’s teachings and the Baby Steps. She made a detailed budget and began using the cash envelope system.
“That was real freedom,” she said. “It motivated me.”
44 months after that creditor’s call, Ruth became debt-free! She paid off $38,000 and is able to live and givelike no one else!
“Where I once felt trapped, I now feel blessed,” she said.
See more of Ruth’s flight to financial peace:
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