Sally and Adam Cleary's journey from financial hardship to debt freedom offers valuable lessons for anyone struggling with debt. In 2009, the recession hit them hard - Adam lost his job while Sally's hours were drastically reduced. Their initial response was to withdraw from retirement accounts and rely on credit cards, ultimately accumulating $11,000 in credit card debt.

Facing foreclosure on their Boise home, they moved into Adam's mother's basement in Colorado Springs. The most difficult decision was giving up their beloved Labrador retrievers due to lack of yard space.

Key Steps to Their Debt Freedom:

• Enrolled in a debt management plan through credit counseling
• Committed to higher monthly payments to become debt-free faster
• Sold valuable possessions, including family heirlooms
• Strictly budgeted everyday expenses, including gas and groceries
• Eliminated unnecessary purchases and lifestyle expenses

Important Lessons Learned:

• Don't make hasty financial decisions when panicked
• Explore all options before touching retirement savings
• Accept help when needed
• Learn to live within means
• Track every dollar spent

The Results:

• Paid off $11,000 credit card debt by May 2014
• Improved credit scores significantly
• Purchased a new home in Boise in 2015
• Developed better money management habits
• Now save 24% of income for retirement

Tips for Tackling Debt:

1. Take time to assess the situation before making decisions
2. Create and regularly adjust a budget
3. Build an emergency fund
4. Set clear, realistic financial goals
5. Consider professional help if debt exceeds 40% of income
6. Be prepared to make temporary sacrifices
7. Focus on high-interest debt first

Today, the Clearys enjoy financial stability while maintaining careful money management habits. Their story demonstrates that with commitment, proper planning, and willingness to make temporary sacrifices, getting out of debt is achievable.

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