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:

149 | Debt-Free After Divorce: How This Single Mom Paid Off $17K in Debt, Saved $24K & Turned Her Finances Around Financial Coaching for Women: How To Budget, Manage Money, Pay Off Debt, Save Money, Paycheck Plans

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.
Single mom with baby working from home

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.
Pay off Debts Lies on Table Next to Piggy Bank

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.
Excited Screaming Woman

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