Like any other parent, Rachel Gause wanted to give her children the best she could while they were growing up. She was a Master Sergeant in the U.S. Marine Corps and was receiving child support, so it seemed she should have been on solid financial ground. Careless spending and living beyond her means eventually lead Rachel into six-figure debt and it just kept growing. As much as she wanted to help her children, she simply could not afford to keep living the way she had in the past. With a high level of determination and consistency, Rachel moved from a debt of six figures to being debt-free.
To know the story of how Rachel got out of debt, you first need to know how she got into it. Rachel is a single parent who tried her best to provide everything for her kids. Being a single mom, she faced many challenges and even had to work overtime in order to earn enough to “keep up with the Jones’ ” so to speak. She felt it was important for her children to have what all of their friends had. Gause states, “I was just trying to keep up with everybody else.” She recalled a time when she was a child when she didn’t have new clothes or shoes at the start of the school year. She wanted to make sure that her kids never had to experience that. She decided that her best course of action was to start using credit cards to make up the difference. Her debts accumulated gradually and Rachel simply was not paying much attention.
Rachel confessed that she was not aware of how much debt she was in. She spent so much time “robbing Peter to pay Paul” that it became somewhat second nature to her. Rachel got to a point where she realized she was in deep and something had to change. She did not want to retire in debt. Rachel knew that it was next to impossible for her to come up with all of the funds needed to repay her debt, so she started making some tough decisions. Rachel discovered that she had a big truck, a Toyota Sequoia, which she knew she couldn’t make payments on. In addition, the family did not need such a big truck. Fortunately, one day in church she met with an old lady who had always wanted to purchase a Toyota Sequoia. After some discussion, they agreed on to exchange cars. Rachel got a Toyota Corolla in the exchange. This was the first step that Rachel had made to change her life.
Rachel began a savings plan and used to set aside around $2,100 per month which was going towards the payment of her debt. She began to track her spending every month. With this in mind, she was able to know how much she was spending and how much she was saving. Due to her experience, she began to teach her children the value of saving. Every time they wanted something her response was geared towards saving.
Coping with debts can seem overwhelming, but in reality is completely manageable. All that is required is first sitting down and budgeting all your monthly earnings. List your most necessary purchases first and get those taken care of. Other needs will just have to wait until the following month. Also, it helps to know exactly how much you owe and come up with an effective plan with a set timeline to pay your debts off. This gives you a goal to reach and makes being in debt a little less stressful.
Rachel’s story is not unlike many Americans. If you are struggling with debt, contact JXD Financial and let us go over your accounts with you and develop a debt reduction plan that will suit your needs. You don’t have to feel alone. JXD is here to help.