Debt-Free After Divorce: How This Single Mom Paid Off $17K in Debt, Saved $24K & Turned Her Finances Around

This client case study is a big ol’ Debt Payoff Success Story!!! Sometimes paying off debt is not necessarily the goal, but in their case it was SUCH a big part of their story. You can listen to them tell it here:

Key Stats On Where She Started:

• Location: Florida Panhandle
• Income: $3,600 per month, a single-income mom.
• Three children.
• Held 11 debts, including credit cards, vehicle loans and a second mortgage.
• Savings: $1,000.
• Debt minimum payments: $5,091.
• Total debt: $17,591
• In the middle of a divorce.
• Never really knew how to organize her money.
• Spent her Saturday mornings on the porch with her coffee stressed about how to pay the bills.
• She was an office assistant with a small cake pop side hustle.
• Zero child support coming in and zero help from her ex-husband with kids sports/activities.

Strategies and Systems She Used:

• Seven months of coaching to get the guidance and support she needed to tackle her financial challenges effectively.
• She proactively called collection companies to negotiate early payoff amounts, taking advantage of settlement options to reduce her debt.
• She diligently checked her credit report monthly, which allowed her to track the progress of her debts being resolved and items falling off her report.
• Instead of splurging her tax return, she used it to pay off credit card debt, accelerating her journey to financial freedom.
• She reorganized her accounts, changing the names and structures to help manage her income, bills, and spending more efficiently.
• She sold assets she no longer needed, like a car, to generate additional funds to put toward her financial goals.
• After paying off her credit cards, she closed them to avoid accumulating more debt and maintain better financial control.
• She got new insurance quotes to ensure she had the most cost-effective coverage suitable for her new circumstances.
• She shopped around for a bank that aligned with her financial system, ensuring her accounts supported the strategies she learned during coaching.
• She navigated the complex process of separating joint finances, including mortgages, car loans, and bank accounts, to establish her financial independence.
• She actively engaged her children in the budgeting process, explaining the family’s financial situation and making necessary adjustments together.

Where they were when they graduated coaching:

• Debt-Free: She successfully paid off all her debts (from 11 to 0!) including credit cards and collections, eliminating financial burdens and stress.
• Increased Savings: Her savings grew substantially, going from $1,000 to $24,000, providing a financial safety net for her sweet & amazing family.
• Reduced Monthly Expenses: Her monthly minimum payments went from $5091 to $0!!! By eliminating most of her monthly minimum payments, she significantly reduced her monthly financial obligations.
• Financial Independence: She established financial independence as a single mother, managing her finances effectively and providing for her family.
• Empowered Budgeting: She gained the knowledge and skills to create and stick to a budget, ensuring her money was used wisely and intentionally.
• Improved Credit: Through diligent efforts, her credit score improved as negative items fell off her credit report, opening up opportunities for better financial products in the future.
• Streamlined Finances: She restructured her accounts and financial systems to simplify her money management, making it more efficient and less stressful.
• No More Saturday Coffee Money Stress: With her financial situation stabilized, she experienced reduced stress and anxiety about money, allowing her to enjoy a better quality of life.
• Positive Family Impact: Her children also benefited from her improved financial literacy, learning valuable money management skills from their mother.

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