I Avoided My Debt for Years — Here’s How I’m Finally Paying It Off
Written by
Heather Taylor
Edited by
Levi Leidy
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If you’re currently in personal debt, you’re not alone. Research conducted by Northwestern Mutual in May 2024 revealed that the average personal debt is growing among Americans. The average American owes $22,713.
One frustrating finding is that Americans not only owe more now than they did in 2023, but aren’t sure if they’ll be able to pay this money back. Compared to 61% of Americans polled by Northwestern Mutual that said they had a plan for repaying their debt in 2023, this percentage declined to 59% of borrowers this year. Without a plan in place, many Americans may find themselves accumulating more debt. This could gradually lead to missing important payments, lower credit scores and developing a mindset that refuses to acknowledge how out of control their debt has gotten.
The good news is it’s possible to get back on track and get out of debt. GOBankingRates spoke to Liz Zarins, the founder of a PR company, who shared her story with us about how she’s at the halfway point with paying off her debt.
Normalizing Life With Credit Card Debt
Out of any forms of personal debt, credit cards ranked as the top source of personal debt for 28% of respondents polled by Northwestern Mutual. This is also true of Zarins, who told GOBankingRates for years it was her “thing” to be in credit card debt.
“I would rack up debt, and just live with maxed-out credit cards until I would get another card,” she said.
Maxed-out credit card balances weren’t the only thing keeping her stuck in debt. She also had an unhealthy relationship with money. In addition to being afraid of money, Zarins said she often fell victim to believing her debt made her unlovable, unworthy and unable to possess any real money.
Taking a Unique Approach To Paying Off Credit Card Debt
When Zarins’ credit card debt reached $40,000, she made the decision to join Debtors Anonymous. Abbreviated as D.A., Debtors Anonymous is a program designed for members that have found unsecured debt is causing problems in their personal lives and want to stop incurring more debt.
Zarins told GOBankingRates that joining D.A. was the best thing to happen to her both personally and professionally. On a personal level, Zarins has also been reflecting on her relationship to money.
“I’m finding it’s not about the money, it’s what meaning did I assign to the money? I put it on this pedestal and thought I was not worthy,” she said.
And instead of attempting to build another business that might be easier to run, Zarins has embraced the company she already owns. She started to build it out and was able to increase her earnings by $14,000 over six months. Now, she said she’s earning more money than she’s ever made in her life and is taking the necessary steps to start accomplishing her money goals.
A few times a week, Zarins looks at her numbers to better understand how much she earns and spends each month. To date, she has paid off $20,000 of her existing credit card debt and told GOBankingRates she doesn’t use her credit cards anymore.
Now that she has more money freed up, she’s also on track toward saving for initiatives in life that matter to her. Zarins said she has set some money aside into savings, something she was never able to do before.
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