Alexandra NielDivorce Recovery Coach, ANiel International, LLC. · I help women who held it all together through divorce finally build a life that’s actually theirs | Thrive After Divorce

Overcoming Debt: My Journey to Financial Freedom #shorts

7 Nov 2024 · 1 min

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In this short personal testimony, the speaker explains how she tackled a financial crisis involving substantial credit‑card debt and alimony obligations. She prioritized keeping her 401(k) contributions untouched, viewing them as long‑term savings she could not afford to dip into. To eliminate the credit‑card debt, she adopted an aggressive repayment plan, doubling the minimum monthly payment each month. Over a period of a few years, this approach allowed her to fully clear the credit‑card balances while continuing to meet alimony responsibilities, ultimately regaining financial stability.

Chapters

So I needed to find a way to really get back on my feet really quickly, especially because not only did I get the credit card debt, but I also had to pay him alimony. So the first thing that I knew I wanted to do was to make sure that I wasn't going to touch the contribution that I made to my 401 because I was thinking more long-term and I was like, this is money that I don't see anyways. So I don't want to touch that. The second thing I did was to pay off the credit card. It was so much credit card debt, at least it felt to me like it was so much credit card debt that I wanted to get rid of that as soon as possible. So I doubled the minimum payment every month until a couple of years later I was finally able to completely get rid of the debt.