Four years ago Monique A. Harps contended with more than $104,000 in debt. Although the 30-year-old still owes $34,000 in student loans, she has paid off more than $72,000 in car, credit card, and student loan debt (plus an additional $12,000 in interest). "Up to July 2007, I didn't really know where my money was going,†she confesses, admitting that she was a bit of an impulsive shopper. Harps may have been unaware of her spending but the bill statements were clear: She accumulated $17,000 in debt on three credit cards; $54,000 in school loans; and a $30,000 bill courtesy of the brand-new Nissan Maxima she bought to reward herself for earning a master's degree in 2007. Her credit cards financed trips as well as clothes and groceries. After graduation she used credit cards to pay for furniture and a three-week road trip along the East Coast. "It was ‘normal' to have credit cards, student loans, and a car payment. Most people think they are doing well financially as long as they aren't behind. I was no different,†Harps says. But today, she's focused on attaining financial freedom. "The first thing I did was commit to the goal of becoming debt free,†says Harps, who uses financial guru Dave Ramsey's debt snowball method. Ramsey recommends listing all debt in order from the smallest balance to the largest and making minimum payments on all debts except the smallest one. Interest rates aren't considered unless two debts have the same balance; in that case, list the one with the higher interest rate ï¬rst. Ramsey believes that eliminating smaller debts gives you quick feedback, builds momentum, and reinforces your commitment, making it more likely that you'll stick with the plan. To pay down her bills, she trimmed excess items from her budget and downsized to a smaller apartment. She also worked part time at Macy's, provided babysitting and house cleaning services, and participated in paid studies to earn extra cash. Her efforts literally paid off: She eliminated her credit card debt in nine months and within 34 months paid off her car loan. "By using the debt snowball method, I moved my debt-free date from November 2037 to December 2014 and decreased my estimated interest fees by $65, 000,†notes Harps, who earns roughly $72,000 annually. What's more mind-blowing is that shes is amping up her debt-elimination efforts and moving her target "freedom†date up 18 months to June 2013. (Continued on next page) She's currently brainstorming ideas to pay off the remainder of her student loans, including selling some clothing items on eBay and using income she earns from Weekend Rum Cakes, a three-way partnership with friends that projected revenue earnings of $5,000 in 2011. Moreover, she started a new side business, Harps Financial Coaching, last March, earning $2,000 in gross revenues for 2011. Harps says any remaining funds from her two ventures go toward paying student loan debt. Her lifestyle may sound austere, but she finds inexpensive ways to enjoy life. She allocates $40 every payday to leisure activities, goes to dollar cinemas, and participates in endurance running events around the country. "I learned that personal finance is more about behavior than it is about math,†she says. Being able to pay off the small debts gave me a sense of accomplishment and reinforced the idea of becoming debt free.†HOW SHE DID IT - Commit to change. To make this approach work, you must modify your relationship with money. "If you're not committed to becoming debt free, you could buckle. If you have a budget, stick with it and resist the urge to spend. Why? Because you'll risk breaking your word, says Harps, and money, regardless of the amount, will add up. "It's like trying to lose weight,†she says. - Plan. Budgeting is a must for those seeking to be debt free. "If you don't tell your money where to go, there's no telling where it will end up,†says Harps. She recommends completing a budget every month and updating it on paydays on a spreadsheet. She used the Rapid Debt Reduction Calculator and CNN's money calculator to estimate interest savings. - Manage taxes. In addition to managing her debt, Harps has also been careful about her tax obligations because of her new business and other income-producing ventures outside of her job. She advises saving receipts and keeping good records. "I have a tax accountant who helps me understand my business taxes. I have been advised to save 35% to cover taxes.†Harps says that her tax accountant helped her navigate tax rules and provided clarity about tax forms that small business owners need to use. - Use bill pay. Setting up automatic bill payments through your bank will ensure that you pay bills on time and avoid late fees. Harps uses automatic bill pay to pay all her minimum payments on a monthly basis; she made extra payments when her budget allowed. "This really helps to keep you and your money focused on the goal,†she says.  Â