Debt is a word that is not new to me. I have practically been in debt for God knows how many years. It all started with the credit card. I had just started working and the money I was earning was getting spent faster than I could earn it. The long nights out with my friends, the innumerable trips to God knows where, just to have a good time, was taking its toll on me. I was thinking of getting a payday loan when by chance I glanced in my mail and found that I was eligible for a credit card at 0% interest. It was an offer that was too good to believe. I immediately opted for it. The limit I had was spent so soon, I did not even know what I had used it for. The following month I could not pay the amount I had spent, so I paid the minimum amount for repayment. I was making the minimum payment for a few months and I chanced upon the credit card statement. To my dismay I found that I was being charged a hefty rate of interest for my spend. I contacted their customer service only to find that I had failed to read the fine print.
I was stressed and my hair started falling off. I was thinking of ways to clear up my dues, when I received a mail asking me to transfer the existing credit card to another bank. My credit limit was also increased. I opted for that. I again spent the remaining limit and the story was the same. But this time I applied for two more credit cards and with money taken from one credit card, I paid the other and there began the vicious cycle. I was pulled into the debt trap and to come out it I had to take great pains.
The first thing that I did was sit down and contemplate on the direction my life was taking. I had an option of falling into the precipice or pulling myself out and getting my life back on track. Once I decided that I needed to put my life back on track, everything fell into place.
I took a pen and paper and listed out my expenses first. If there was an expense which I could do without I removed it. I did not drink milk for 3 years. I saved the money I was spending on milk. I did similar sacrifices and I had a neat list of only the necessary expenditure.
Next I went online and found out a financial planning calculator. I inserted the necessary information and got the answers. I then proceeded to make minimum payments on two credit cards and made more payments on one credit card. In one year I had paid all for that card. I revoked that card and then I started making more payments for the second card. In three years I had no debts. Now, I make it a point to save the money that I used to make for payments. I have a nice bank balance now. I feel good. I hope you too take a decision and get your life back on track.March 6, 2018