Stepping into Tracy Schultz' apartment, is like stepping into a funky art gallery. Bright colors and patterns adorn the walls and curtains. Her coffee table consists of a black and white tiger holding up a pane of glass, a baguette-shaped pillow lays on her couch, and her refrigerator is covered in fun stickers and magnets.
"I like things that make me laugh and things that make me happy," said Schultz. "Having, like, a sanctuary where I can just look around and everything has a story or a meaning behind it is huge for me."
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WATCH HEREThe decor represents a big shift in her life in recent years: independence following a breakup and newfound freedom from debt.
"I had to evict an ex-boyfriend," said Schultz. "We got an apartment together. It was supposed to be long-term, and we were both paying half the rent, and then suddenly it was just me. Things were tight, and I got credit cards because I figured, oh well, you know, I'll just keep the balance low, I pay it off every month, and it just… kept on getting worse, deeper and deeper, sinking into debt."
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SIGN UP Schultz' debt grew to a balance of $20,000. She said taking out loans to help with payments made it worse.
"Very predatory loans, 20% interest rate, where just you're thinking, oh, well, I'll be in better circumstances soon. This will be fine. Like, this will just carry me over. I'll use this to pay off balances and then I'll pay this off. And it just would be one thing after another — the transmission on my car went or there's an emergency vet situation and just, like, could not get ahead," said Schultz. "It was super stressful. Just a pit in my stomach all the time. I realized I needed help when I could no longer make the minimum payments. And I was getting phone calls from creditors all the time. And it was just all I was thinking about constantly. Like, it takes over your life."
She turned to the debt management program at nonprofit Money Management International, or MMI, for help, saying, "They had me send in all my account balances and they worked with the creditors without involving me to get the interest rates reduced. MMI worked with the creditors to pretty much freeze the payment in place. So, it was a set payment every month."
Some key actions that helped her pay off her debt include getting a second job working at a grocery store to bring in more income and keeping her spending down. It's taken five years, but she's finally in the home stretch, one payment away from paying off her debt.
"I am proud of myself. I have to remind myself not to do it again," said Schultz. "Not having unpleasant creditors call me and not having it in the back of my mind all the time is a huge relief."
Now, she can focus her time and energy on the things she cares about. Schultz is a marathon runner and recently passed the bar exam.
She still treats herself to coffee and other things that bring her joy, like decorating her home however she likes, but she has changed the way she spends money.
"I now wait before I make a purchase. I was very impulsive, and it was all about, like, oh, I want this, I should get it. And the instant gratification and, it's gonna get shipped right away and I'll have it by tomorrow. And now it's like, no, stop. You can put it in the cart online, but just let it sit. And if you still really want it in another couple of days, that's fine. But really think about, do you need this?"
She also recommends seeking help if debt has become overwhelming.
"I would advise other people to check out options. There are nonprofit organizations that are willing to help you and will work with your creditors and will get your interest rates frozen so that you're not sinking further and further into debt. And they also have programs that will teach you how to manage your money as well," Schultz said.
