How I Paid $35,000 Off in Debt in 12 Months

Tatiana Hart/ January 20, 2019/ FINANCIAL FREEDOM/ 0 comments

I paid off $35,000 in debt in 12 months.

How did I do it?

Simple. I changed my mind. I finally figured out what money was.

Money is an illusion. It does give you freedom but only when you understand what freedom is and what matters most in life. It is my life and my personal freedom. 

So how do you pay off debt without sacrificing health and good life?

In order to commit to a plan you must have determination. When you are determined to achieve a goal, you will prioritize toward this goal regardless of the obstacles.

I set a goal to pay off a high number but I paid even more than I anticipated. the entire debt came from a student loan , the money I borrowed to get a professional degree.

I did not have credit card debt. I have credit cards. I use them wisely and never carry a balance. I also have a ridiculously high FICO score. I learned from experience how the credit system works and made it work along the way.

But I decided to stop feeding the beast and to become financially free.

When you set an aggressive goal like this, you get discouraged along the way at first. You get back on track immediately. That’s determination.

When you truly want to be free you will find a way regardless of the obstacles.

You have to have a mindset and a drive to pay off a large amount of debt. I will not tell you what you should do. I will tell you what I did not do and what helped me succeed.

I did not do:

  1. I did not clip coupons. Coupon clipping wastes time. You end up buying cheap toxic stuff that the manufacturer wants to get rid off without sacrificing the profit margin. You will end up wasting more money and time relying on coupons. Do not buy food with coupons. You again sacrifice health and jeopardize your financial future in the long run.
  2. I did not eat “rice and beans”. Neither of them a good nutritious choice, although cheap. Due to anti-nutrients they will deplete the body of vital nutrients and will lead to a slew of diseases.
  3. I did not cut corners on food. I source food carefully and eat mostly raw with an emphasis on animal products. I buy from farmers who practice responsible farming and take care of their animals. As a result, I nourish myself with high quality food that eliminates the need for synthetic supplementation.
  4. I did not buy supplements and prescription drugs. Those can cost more than nutritious food and actually can harm in the long run.
  5. I did not eat out during the twelve months. Except on vacation. I did not waste money on price mark ups and inferior food. I go to Europe to lay in the sun and spend time with family. I have easier time finding high quality food at a reasonable price at restaurants there. In fact, when I vacation there I manage to spend less money on food while eating better.
  6. I did not buy a gym membership while staying in better than ever shape. Exercise does not work when you eat junk, it is not a substitute for a nutritious diet. So I saved $42o and crushed my goal.
  7. I did not have cable TV. You learn nothing by watching television. It programs your limitations and tells how little you are. TV rottens the brain while taking your money and wasting your precious time. I took the $1,200 most people spend on cable and crushed the debt. I actually have not watched TV in ten years. Try it. You will reach amazing goals and personal growth.

I did do:

  1. I saved on mortgage and all associated costs with home “ownership” buy renting.  Home ownership in the United States is an illusion.You only own a property outright when you own the land it sits on. Private home “owners” essentially rent from the state because none of them owns the land the house is built. This is also  true for people who pay cash for real estate. Only an allodial title  provides full ownership of a property and the land. When you take out a mortgage, you end up paying a lot more for a house. See proof of that and my calculations here.
  2. I saved on rent buy living in a rent control apartment in a good neighborhood. Rent rates in New York city are not stringently regulated across properties. Rent prices can go up from year to year by as much as 30-40% annually. However, a small number of units in the city may not exceed 1% in rent cost. These units are known as rent-controlled and very hard to come by. Furthermore, my rent included heat which is also uncommon. When temperatures get low in the city, energy bills skyrocket. My friends foot $500/month electric bills during the colder months. I took the $500 each month and crushed my goal.
  3. I obtained a free cellular service through Freedom Pop. I primarily message and use the Internet. Therefore, the free service plan saved me s lot.
  4. I consolidated multiple loans into one through a private lender and got a low interest rate. Also, I negotiated to apply extra payments toward the principal amount only. Since interest is calculated of the principal, it gradually reduced the amount of interest I paid.
  5. I read books instead of watching television. I gained free access to them and used any transit time to expand my world view through reading.
  6. I took care of my body and mind. They paid me back handsomely.
  7. I spent a lot of time in nature and drew inspiration to create, create, create.
  8. I gave up consumption and created instead.
  9. I budgeted important purchases and planned trips ahead of time allocating funds diligently.

To pay off $35,000 I had to get fit mentally. It was simple. However, without the right mindset, the task may not be easy. Most importantly, I did not sacrifice the good life and my health to become financially fit. That is the secret to staying on the goal and crushing it.

Until next time,

-Tatiana Hart.


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