How Cheryl Created a Debt-Free Future for Her Family

Alberta couple, Cheryl and her husband, were facing a harsh financial reality: with over $30,000 in consumer debt from four credit cards and one line of credit, making the monthly minimum payments had become nearly impossible. The weight of their debt was taking a toll on their lives and their relationship.

“My husband didn’t realize we were dealing with that much debt or struggling that much,” Cheryl reflected. “I told him that if we don’t do this now, it’s only going to get worse.”

Recognizing the warning signs of debt spiraling out of control, they decided it was time to seek professional debt help. After learning about Money Mentors through a commercial, the couple booked a free financial appointment with a counsellor near them. During their appointment, their counsellor, Paula, discussed various debt consolidation options, including the Orderly Payment of Debts (OPD) program.

The OPD program stood out to them as a manageable way to consolidate debts into one monthly payment with reduced interest rates. Together, Cheryl and her husband agreed that the OPD program was the best option for them and their soon-to-be-growing family.

With Paula as a witness to the start of their new financial journey, Cheryl and her husband made a symbolic gesture: they cut up their credit cards and committed to living on a cash-only budget.

This significant lifestyle change meant adopting new money habits, cutting unnecessary expenses, and making sacrifices, but they were determined to regain control of their finances so that they could retire debt-free.

Growing Pains for the Growing Family

But financial restructuring wasn’t the only significant change on the horizon. Just one month into the OPD program, Cheryl gave birth to a baby girl.

“It was a tough time,” Cheryl said. “We went from having some spending money and a bit of cushioning with our credit cards to the costs of having a baby, going on maternity leave, and starting the OPD program with cash-only.

“It was a marital struggle, for sure. But I reminded my husband that the sacrifices were worth the challenge. We knew these next four years were going to be bumpy, but if we could get to the other side, we were going to be so much better in so many ways.”

Financial stress can often strain relationships, and Cheryl and her husband were no exception.

They faced the challenge head-on by openly talking about their finances, setting shared goals, and supporting each other through tough decisions.

However, those bumps just kept on coming. A couple of years later, while still on the OPD program, Cheryl and her husband welcomed another daughter who developed severe allergies, causing the couple even further financial hardships. Not only did they have to start buying expensive formula for their new baby, but Cheryl couldn’t return to work after maternity leave as she needed to care for her child’s severe health complications.

Financial Support Every Step of the Way

Despite these challenges, they remained resilient. Paula and the Money Mentors team were there for them at every turn. When monthly OPD program payments were hard to make, or sometimes impossible, Paula and the team were understanding and helped them find ways to adjust their payment plan to accommodate their changing financial situation.

“It was important for me to become debt-free before our kids were old enough to understand what’s going on,” Cheryl said. “I definitely want to share our story with them because I want them to learn from our financial mistakes.”

Recognizing the importance of financial literacy, Cheryl and her husband aimed to create a healthy financial foundation by teaching their kids about money early, so they don’t make the same mistakes as their parents.

Both growing up in Alberta, Cheryl and her husband were raised with different financial values. Cheryl was taught to be frugal to save and limit spending, whereas her husband was raised by parents who spent money frivolously. When they met, it was easy for Cheryl to slip into his spending ways and buy things they didn’t need.

“It’s crazy how easy it is to rack up credit card debt!” she exclaimed.

How to Pay Off Credit Card Debt

Looking Ahead at a Debt-Free Future

After four years of dedication and hard work since starting the OPD program, Cheryl and her family finally became debt-free. Not only did they pay off their consumer debt, but they also paid off their vehicle loan, relieving another financial burden.

Today, Cheryl is expecting her fourth child, and she and her husband are looking forward to purchasing their dream home in Edmonton for their growing family. They have built a strong financial foundation and are excited about their future.

“I still stick to the budget Paula originally made for us,” Cheryl promised. “Throughout the OPD program, I figured out how we could save money on everyday expenses and adjust our finances for rising interest and inflation. It’s important to plan ahead.”

She also emphasizes the value of budgeting and continuously revisiting your financial plan to adapt to new circumstances.

When reflecting on her story and why she chose to share it with others, Cheryl said: “There’s a very negative stigma surrounding money with a lot of ‘keeping up with the Joneses.’ Think about how many years it took you to get into debt and how many years it’ll take you to get out of it.”

Reminder: You Are Not Your Money

Comparing the time it took for her to get out of debt, Cheryl thought about how fast her children have been growing during this debt-free journey.

“Your child will go from a one-year-old to a five-year-old in the blink of an eye, and in that time, you could be debt-free. Money Mentors is the way to go!”

Cheryl’s journey shows that with determination, support, and the right guidance, it’s possible to get out of debt and build a brighter future for your family.

Discover How You Can Achieve Financial Freedom

If Cheryl’s story resonates with you, know that you’re not alone, and help is available. Taking the first step towards financial wellness can be daunting, but it’s a decision that can transform your life.

Start your journey today:

• Understanding Debt: Warning Signs and Prevention
• Debt Repayment: What Debt Should I Pay Off First?
• The Pros and Cons of Debt Consolidation
• Is the Orderly Payment of Debts Program Right for You?
• 5 Simple Steps for Creating a Budget & Maintaining It
• How to Shift Your Money Mindset in 5 Easy Steps
• 30 Amazing Timeless Money Tips

 If you live in Alberta, contact Money Mentors to book your free consultation and take control of your financial future.

Cheryl’s success story is a testament to the power of perseverance, proper guidance, and the willingness to make meaningful changes. No matter where you are on your financial journey, resources and support are available to help you achieve your goals.