Former Bay Street lawyer used this seven-point plan to hack away at her debt

In a newsletter last week, Vancouver lawyer Monique Shebbeare shared the story of how she ended up deep in debt. After leaving a job on Bay Street in Toronto, Ms. Shebbeare found herself with more than $50,000 in debt plus the mortgage on her condo. Here’s her point-by-point look at how she became entirely debt-free over 14 years, aside from a mortgage.

I cut my expenses: This meant making difficult decisions months after I originally should have made them (rent out my condo, move in with roommates). Then I learned how to think ahead. I got used to doing without much in the way of new clothes, travel and eating out, especially at the beginning when having enough for basic monthly cut-back expenses was not a given.

I increased my income: At first, that meant adding sessional teaching and legal writing to my smaller contract work. Eventually, when I moved back to my home province (B.C.), it meant giving law a second chance after a hiatus of over three years.

I resolved not to incur any more debt: I managed this with two exceptions I don't regret (during my maternity leave year, and eventually setting up my own legal practice). The hardest part of this was feeling cheap when people I loved wanted to go on trips or eat out at restaurants I couldn't afford. But I knew I would never get out of debt if I just kept incurring new debt, and I hated the feeling of constantly trying to dig myself out of my debt hole.

Bit by bit, I hacked away at my debt: My favourite guidebook on this journey was How to Get Out of Debt, Stay Out of Debt, and Live Prosperously by Jerrold Mundis. I slowly paid down each debt in a way that felt like I was making a dent, while over time using some of the increased income to enjoy life. I kept an Excel spreadsheet showing my debt repayment; it was very satisfying and motivating to see the debt levels go down.

I hired a money coach: For a long time, I had no money to invest. I hired a certified financial planner (CFP) to get into the nitty gritty of my debt, income, expenses and make a plan. It felt like a big expense at the time, but the results over time were worth every penny.

I was patient: Fourteen years is a long time. Sometimes it felt like forever.

When I paid off my debt, I celebrated: The month I made my last payment was deeply satisfying. Then, for one year, I allowed myself to use the money that I had been using on debt payments for whatever I wanted. A big trip with my daughter to England. A set of grown-up dinnerware. Things I gave up to reach this goal. The next year, I got responsible again.

There really is a world of difference emotionally between being in debt and not. I am standing on solid ground, and now I can look up and see what the rest of the world and this life has to offer.