Ali Perez Sifuentes is an artist from Minnesota who was saddled with debt after losing his primary source of income. Struggling to balance payments for nine different credit cards on a severely limited budget, Ali was referred to MMI.
With MMI, Ali was given a repayment plan with a single, affordable monthly payment, giving him the tools to finally repay $17,000 worth of debt.
Note: Transcripts are machine-generated and may contain errors.
Tara: Hi, there. Today I'm talking with Ali Perez Sifuentes from Rochester, Minnesota. And working with us here at Money Management International, Ali was able to pay off about $17,000 in debt in just five years through MMI's debt management plan. Ali is here today to share his debt payoff story. Debt. We've all heard of it. Most of us have it. Debt seems to be an unavoidable reality of life.
But what happens when it starts consuming life? Here at Money Management International, we believe that financial challenges aren't meant to be faced alone. On this podcast, we hear stories of people whose lives have been changed by mmi. Their stories are unique, personal, and inspiring. Stay tuned. We're sharing each guest. Long story short, before we jump in and get started, why don't you just tell us a little bit more about yourself?
Ali: Sure. I worked in food service prior to getting all that debt, and I also sold some of my paintings on the side. I could say that's maybe my small business. I like to classify it as that. I wanted to do that and also work in food service. And when I lost my job at food service, that's when I started having all this debt. And I had, I believe it was nine credit cards. Okay.
And the highest balance on one was $7,000. So I thought, yeah, I mean, I'm not gonna be able to pay all of this debt with this high interest rate. And that's when I was referred to by Barclays, one of my credit cards, to Money Management International.
Tara: Okay. So it sounds like your situation came about because of a change in employment, you know, a job loss. And again, I feel like it's such a common thing, especially coming out of the pandemic. And with things changing in our economy, people are just seeing things like that that are just out of their control. And so you found us through Barclays, which was one of your credit card companies. They just referred you over to mmi. Excellent. So tell us a little bit more about that.
You reached out and what happened next. How did working with the debt counselors here at MMI help you sort of get everything together and see a path forward and decide that this might be the right way to go?
Ali: Sure. I had a call with one of the credit counselors for about an hour, and I thought our interaction was productive. And I thought, oh, it was so easy to clear all this debt up and have a plan and have a path forward and not have to just go through all the numbers and worry about all these different interest rates. So they made it so much easier for me to just condense all that debt into one. And I thought, I think I'm going to use MMI for that reason because it was such a good experience.
Tara: I'm glad to hear it. So it sounds like that initial call went well, and they were able to sort of say, okay, here's how you can consolidate these nine different credit cards and make one monthly payment. And obviously it was a payment that you felt you could afford and handle. Great. So tell us a little bit more about your experience with mmi. So, you know, you talked about when you initially spoke with one of the counselors. What was that like throughout the process? And then what was the most important thing that you learned throughout that process? Throughout those five years?
Ali: My interaction with them was very. I was very impressed because it was so easy for me to condense all that debt into one. When you have nine credit cards, it's so difficult to keep track of every single credit card and say, oh, I'm going to pay this one off, and I have to log in, pay that off, and then remember the interest rate and then go to the next one and the next one. So it helped me understand that, hey, I, maybe I don't need nine credit cards. Maybe I need two. And after I had that call with the credit counselor and. And there was a plan that we agreed on, and I started making my payments. That's when I started seeing on the balance sheet, oh, this is.
I'm making progress. It doesn't feel like I'm just paying off the interest.
Tara: Right.
Ali: I'm actually getting rid of my debt.
Tara: And I think that's such a big deal. You know, I think sometimes we can get caught in this cycle where we feel like we're working so hard and making these payments and we're really not making any headway. And as you said, a lot of times it's just about reducing that interest. However, that consolidation helps. And I also love that you said there may be cases where it's not only just, hey, I'm struggling to pay all these amounts that it. It's also a situation where I've got nine different things swimming around in my head, and I don't need that. So there's a couple of different ways that it helps. It sounds like, because, you know, we talked about this, I think job loss is a similar situation that many people are facing, especially now, and just changing economy and prices of things.
What advice would you give to somebody in a similar position to yours that was looking to sort of get through a situation like that and Manage their debt.
Ali: I think it's so easy for a person to say, oh, I can pay this off. Right. And once you have access to a credit counselor, you realize, oh, I'm actually not paying this thing off. I'm just paying off the interest, and I'm actually getting more and more into debt. And I think that's probably what I would suggest to people is to have an open mind and say, can I really pay off this interest? And if I can't, then I should probably reach out to a credit counselor.
Tara: Excellent. So sort of knowing what your budget looks like, and if you're not able to pay a significant amount more than that minimum payment, then reach out for help. Love it. You know, Ali, debt is such a common thing, and yet it's something that we just simply don't talk about. How do you think debt counseling nonprofits like MMI are working to break that debt stigma?
Ali: Well, for one, I think they're making people more aware of their problems with debt. And I think a lot of people sometimes don't like to admit, oh, I can't really pay this thing off. But when you have somebody that's actually telling you and showing you the numbers, I think everything clears up. And now I was able to have a clear picture of what the situation looks like, and I had not be in this cycle of worrying about this debt growing and not being able to pay it off.
Tara: So sometimes it sounds like just having that plan and seeing that momentum goes a long way in breaking the stigma. And would you say that it's because then you felt a little bit more comfortable sharing that with others, even though, yes, I have this debt, but now I'm actively working toward knocking that down every month. Was that a better situation you were more equipped to talk about it?
Ali: Yes, absolutely. I think when you have a lot of debt, you don't want to talk about it, and it's because it's an issue. Right. And you don't want to, you know, display your insecurities in front of other people. But once you know that you're paying off now, it becomes a story of hope.
Tara: So I have a couple of last questions, and the next one is speaking of that big accomplishment. What does being debt free mean for you? How has it changed things? What does it mean for you?
Ali: I mean, for me, at least, it definitely made me more confident about paying off my debt and understanding my credit rating, my credit score, and how I should properly manage my finances in regards to that. So my credit score, my overall debt, and being aware of the interest rate every single month.
Tara: That's such a great point that you make too, about the interest rate, because I think in so many cases we're focused on just being able to pay the bill, pay the bill, pay the bill. But we're not necessarily looking at what that interest rate might mean for our overall picture and what we're at actually spending on that bill, big picture. So I love that you said that. And so the final question, you now have this burden of debt removed. It's gone. You have additional money freed up every month. What happens next? What will you do next?
Ali: I mean, I don't know. I guess it's a feeling of freedom that you get when you pay it all off. When you're paying off debt doesn't feel like you're like it's your money anymore. Feels like an expense. So I think that's one thing that people don't understand about that when they initially get into it is that over time, once it builds up, it turns more into an expense and it doesn't feel like your own money. And now that I paid it all off, now I feel like it's my money. Like I own the money and I love it. I love it on me.
Tara: So you went from a place of feeling like you were paying this money every month, really, for no reason, to now you have the same amount of money and you can pay it to whatever you want to pay it. You know, work on your art, do whatever you like to do. It frees up that.
Ali: Absolutely.
Tara: Well, I have loved talking to you today. And again, thank you so much for sharing your story and your insight with us, and I appreciate it.
Ali: Thank you.
Tara: Thanks for listening to this episode of Long Story Short, brought to you by Money Management International. To learn more about our work and how we're helping people in all walks of life repay debt, balance their budget, and find lasting financial peace of mind. Visit moneymanagement.org.
If you're struggling through your own debt story, we're here to help. We offer confidential counseling and powerful debt repayment tools to help take control of your finances. Learn more to see if our services are right for you.
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