Learn What I Did to Finally Get Out of Debt
It took me awhile but now I’m finally debt free. Three years ago I was up to my eye balls in debt! I had three maxed out credit cards, a student loan and a personal loan. My life was in shambles I honestly thought I was going to go crazy because the debt kept on getting worst. One day I sat down and started thinking of ways to get myself out of this mess. The first idea that came to mind was to stop spending foolishly, I’m guilty of over spending buying expensive clothes, cigarettes, beer and eating out. When I actually calculated how much money I was wasting a month the figure was astonishing.
Cigarettes $321 Beer $60 Clothes $200 Eating out $150 Total $731
The three maxed out credit cards had a 19.99% interest rate and all three were over there 5,000 limits. The personal loan was 10k and my student loan was 7k I was 32k in debt! Truthfully speaking the main reason why I got into so much debt was because I tried to play hero with my family members. Whenever they wanted financial help whether I had it or not I found away to lend them the money.
Ironically, they decided not to pay me back at all. I was in a good job working as a Law Clerk but I wasn’t wise enough to make my income work for me. After a long thinking process I came to the realization that I knew now what it takes to become debt free. I will break down the steps I used to eliminate my debt once and for all.
Quit smoking drink occasionally- I use to smoke a pack a day. What motivated me to quit was the simple fact that I was spending too much on cigarettes. I smoked my last cigarette June 15, 2007 and I never even looked at one since. I was able to save around $321 monthly. I only drink on special occasions now not buying a 12 pack of beer every week saves me at least $60. I use the extra $381 a month to pay off two of my credit card bills within 3 years.
Cooking instead of eating out- My fiancée and I use to eat out every Friday it became a tradition. Now we cook for each other it saves us money and it’s more intimate. Buying groceries and cooking at home is way cheaper than eating at any restaurant. We saved about $150 when we cooked at home.
I started living more simply- You have to learn to live within your means. You got to separate the wants from the needs stop trying to keep up with the Jones it’s not worth it. I rarely shop because I know I have more than enough clothes to wear. My workplace is 15 minutes from home so I decided it would be cheaper if I just took the bus to work.
I ended up selling my car for 10k that allowed me to pay off my personal loan. I was paying $200 for car insurance and about $120 for gas every month. I use the extra $320 to pay off my 7k student loan within three years. The $150 I accumulated from cooking at home and the $200 from not buying new clothes for three years enabled me to eliminate my last credit card bill. I paid off all my debt with money left over to put in a high interest saving account.
It was extremely difficult- It might sound easy but it took hard work, discipline and dedication for me to get out of debt. I can’t even tell you how many times I felt like giving up. You have got to be consistent with your efforts it’s a continual process it won’t happen over night.
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