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THE PROBLEM: Kenya Robinson dreams of an African vacation, but first she must deal with her financial reality--a mountain of debt

Name: Kenya Robinson(*)

Age: 37

Hometown: Roanoke Virginia

Occupation: Medical research analyst

Income: $60,000

Robinson has $45,000 in student loans (including interest accrued after two forbearances) that she racked up while earning her Ph.D. in biology. If she continues to make minimum monthly payments of $369, it will take her 20.6 years to pay off the balance. We teamed her up with money maven Glinda Bridgforth, financial counselor and coauthor of Girl, Make Your Money Grow! (Broadway Books), to help her tame her debt and set off on safari sooner than she had planned.

1. The plan: To prioritize Kenya's goals. While paying down the school loan and cutting down credit-card use are important, so is her trip to Africa, which will cost $5,000. She'll need to be flexible to balance these priorities.
2. The program: To improve Robinson's cash flow. The chart shows her expenses, which indicate she's spending more than she's making. With a few nips and tucks, she can have an additional $318 to apply toward her goals. Robinson used the debt calculators at quicken.com to determine different payoff scenarios for the student loan. After weighing her priorities, she has decided to pay just $25 extra per month toward her student-loan payment, which will allow her to pay off the loan 35 months sooner and save $7,491.
3. The payoff: Bon voyage! The size of Kenya's debt is pretty daunting, but she has what it takes to tackle it. A client since 2001, Kenya has diligently worked her financial recovery plan. She's trimmed $4,400 in credit-card debt to just $250 and has paid off a $6,000 car loan. She has even purchased her first home. With our new plan in place, she's ready to start saving for her trip. And she deserves to reward herself for the progress she's made thus far.

(*) Name and identifying characteristics have been changed.

Legend for Chart:

A - expenses
B - income
C - savings
D - plan
E - goal

A

     B                            C

     D                            E

$855 in fixed
expenses (including
housing and car costs)
$120 housekeeper
$320 clothes
$100 gas
$369 student-loan
payment
$50 monthly credit-card
bill (on $4,400 debt)

   $1,667                       $2,900

   She currently spends         Once she gets to a
   more than she's making       positive cash flow,
   and is cutting into          she can make this
   her savings to pay           grow even more
   the difference

   Boost income                 Get financially fit

   Create a steady stream       A new spending
   of freelance work,           plan, boosted income,
   potentially adding up        reduced debt and
   to $2,000 per month          increased savings
                                give her a new
   Reduce spending              financial reality
   $0 on housekeeper
   $20 on clothing              $5,000 savings
                                $250 credit-card debt
   $80 gas
                                $25 additional payment
                                on student loan

Total: $1,814

   $147                         $2,900
   in negative cash flow

   $318-$1,000/mo               up to $6,700
   potential positive           saved in one year
   cash flow

PHOTO (COLOR)