From $75,000 In Credit Card Debt To Debt Free In Just 5 Years

How Terri took control of her financial future — and how you can follow in her footsteps.

Key takeaways:

• Terri successfully paid off her mortgage as the sole income earner — but she still needed help with other aspects of her financial life.
• A team of trusted experts helped her pay off her credit card debt, as well as manage her investments for the future.
• Finding the right team — and a personalized strategy — was pivotal to Terri’s success, and the same approach can help you reach your financial goals.

When Terri walked into her local Northwest financial center to make the final mortgage payment on her home, she had no idea it would change her financial future.

Paying off the mortgage itself had been a process. “When I bought the home, I was married, and it was supposed to be a two-income household. But it didn’t work out that way,” she explains. “I had to remortgage the home and start all over again, but I was determined to pay it off in 15 years — before I turned 60.”

After more than a decade of hard work, Terri had reached her goal. But she still had a number of financial concerns. For one, she’d taken an income cut, retiring early from her 27-year teaching career to spare a younger teacher’s job. She had also made significant sacrifices in order to pay off her home, and she was grappling with credit card debt as a result. 

Each of these challenges made it difficult to anticipate — or budget for — life as a single-income homeowner. “When it came to paying the bills, I would put them off because I just wasn’t sure how I could handle them. You only have so much money to work with, and it just wasn’t an option to pay every bill off in full each month.”

So, when Terri stepped into her local office and struck up a conversation with Candice Livella, Northwest Financial Center manager, she started chatting about other aspects of her financial life — and learned there was so much more she could do to reach her goals.

The first step: Making Terri’s home work harder for her

Terri walked into Northwest with a major asset: All the home equity she’d earned over the years. And access to that equity opened doors for her to address her other financial challenges. 

“When I meet a new client, I always ask what’s keeping them up at night so we can make financial changes that impact their quality of life right away,” says Candice. “For Terri, that was her credit card debt: She had roughly $75,000 of credit card debt spread across multiple cards.”

 To help, Candice recommended opening a home equity line of credit, or HELOC. In some ways, a HELOC functions similarly to a credit card: It allows you to borrow up to the line of credit’s limit and only pay interest on what you owe. Unlike a credit card, though, a HELOC is secured by your home equity. So you can access credit at a fraction of the interest you’d pay with a credit card. 

“People often use a HELOC to help with debt repayment, especially if they have high-interest debts like credit card debt,” explains Candice. “Consolidating your debt into a lower-interest HELOC makes it faster and less expensive to pay off.”

Using her HELOC, Terri was able to pay off her credit cards right away. From there, she paid down the balance in her HELOC in just five years — and freed up room in her budget along the way.

Next, Terri invested wisely for a secure future

As Terri looked ahead to the next phase of her life, she had another financial issue top of mind: Her financial security in retirement. 

“I already had an investment portfolio, but I only heard from the gentleman managing it when I reached out to him,” she explains. “He wasn’t proactive in communicating my investment strategy or keeping me updated on my investments, even though he charged a huge fee.”

That’s a significant problem, since the ideal investment strategy can change significantly as you approach — and enter — retirement. Checking in on your portfolio at least once a year is important to help ensure your strategy still aligns with your goals.

To help, Candice introduced her to  , a financial advisor with Northwest Investment Services. “Right away, I was impressed by his knowledge: He walked through my portfolio with me so I understood where my money was going.”

It turns out Terri unknowingly held significant investments overseas — which is not where she wanted to invest. “I transferred my portfolio to be managed by Shane and we found an investment strategy that worked for me. And he proactively reaches out to me to discuss my investments.”

Terri’s financial journey has taken a significant turn for the better

With help from financial experts, Terri now has a well-rounded financial plan that helps her enjoy the comfortable retirement she deserves. 

“I came in for a simple mortgage payment and walked out with a plan for multiple aspects of my financial life, from debt management to investments,” she says. “There’s just so much peace of mind in having someone alongside you. I used to have a lot of sleepless nights, and now I sleep easy.”

The secrets to Terri’s success

Three strategies you can take away from Terri’s story — and use to reach your own goals.

Start with small, high-impact changes

Terri came to Northwest with multiple financial concerns. But by tackling them one at a time, she was able to make a manageable plan that led to feeling confident in your finances. 

Candice recommends reflecting on the financial issues keeping you up at night and prioritizing those in your financial plan. “You’ll get some relief right away and build momentum to help you move onto the next stage of financial planning.”

Think holistically to enhance your financial health

While you certainly don’t need to tackle every financial issue at once, it’s worthwhile considering all aspects of your financial life in your plan. “You might come in to talk about a mortgage, for example, but by zooming out and thinking about your other financial goals, we can help create a plan that works for you,” says Candice. 

You also don’t need a certain goal or a specific financial product in mind to start thinking about your financial health, she explains. “There’s almost always something we can do to help you reach your goals, including helping you set them.”

Get tailored support from trusted experts

Terri’s biggest takeaway from her journey: Finding the right team is transformative. “I’m very financially responsible, but I’m not a financial professional, and I don’t know everything,” she says. “I took a leap of faith trusting Candice and Shane, and they’ve been by my side every step of the way.”

The right financial professional should be able to meet you where you’re at and work with you to map out the next steps that will have the biggest positive impact on your life. Importantly, they should prioritize your financial well-being, ensuring you don’t feel pressured to make financial decisions before you’re ready, as well as check in with you along your journey. 

In other words, your financial team should feel like your coaches and teammates, ready to support you as you go after your goals.

Need help taking control of your financial future?

When you’re ready, our team of financial experts can help you create a bright financial future. Visit us to learn more about how we can help you achieve your dreams.