Transcript for How one woman paid off $133K in 4 years
Okay, thank you so much. We'll turn now to the woman who managed to pay off $130,000 in debt in less than four years. Rebecca Jarvis is back with how she managed to pull it off and how her strategies can work for all of us. Good morning, Rebecca. Hey, Cecilia, that's right. This is an inspiring story, especially considering that the average American right now is carrying about $90,000 in debt. That's credit cards, student loans, your mortgage. How did one woman pay it all down and reclaim her freedom? Amanda Williams learned how to get out of debt the hard way. We had over $133,000 worth of debt and it took us three years and four months to pay it off. Reporter: She switched careers, buying an expensive new the bills started racking up. I felt overwhelmed looking at the numbers, there was no way I'd be able to afford my car payment and my student loan payments with the salary that I had. Reporter: Panicked, she found the Dave Ramsey website following the advice to take baby steps paying off the lowest debts first and then working her way up. For Amanda, that meant selling off her expensive car. But as I got further along in my journey, the mindset shift really happens. What do I want? Do I want this nice car or do I want to sell it, drive an older car and get out of debt faster. Ultimately that's what I chose. Reporter: Rachel Cruze said a budget is key. This is really key, not only are you able to control your spending but you'll be able to say, okay, where am I spending that I can can actually cut out and put toward my debt? Reporter: And what about the career goals? Amanda saved on the rest of her education too. I was fortunate enough to get my foot in the door to where my company provided education reimbursement for some of my bachelor's and the rest of the master's degree. Reporter: Amanda reached out online for support. Reach out and find people who are going through the same thing. I found a great little community that kept my motivated throughout my whole journey. Reporter: Now she has a side hustle with her own debt advice blog, debt free in sunny ca. She and her husband are saving for the new baby's education. Just put your mind it to. Set a subject. Work your goals. And do anything you can to reach it. Put your mind to it. Again, the key to Amanda's success was paying off those debts starting with the smallest ones first and continuing to make the minimum payments on the remaining debts. Once you finish paying off the small debt then work on to the next one and the next one. Cecilia, the thing about this it gives you a psychological win each time you erase one of of the ones from your history. Yeah. Baby steps. You have tips for people who are trying to do this on their own. Yeah, right now, clearly it's a difficult time for millions of American families, especially with so many facing unemployment. And the number one thing you might need to be doing right now is not taking on new debts. That's important especially if you think about using that credit card at a time like this, it is high interest. You don't want to use that if you can help it. If you're focused on paying down debts there's an organization called the nffc. You can reach them at nffc.org. And let your loved ones know that this is your path. You are seeking to pay down debt. It's so much better when you have other people on your team in this journey fighting for you to make sure you pay down those debts. Cecilia? This is why I call Rebecca my life coach. Thank you, my friend. For more tips on how she paid off the debt, go to our website and check out our debt diary series.
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