My personal story
Date: Fri, 08/06/2010 - 06:13
Here are some money habits that led me into huge amount of debt.
1. Not planning a budget – I didn’t understand the importance of planning a budget. So, I used to spend nearly 98% of what I earned every month. I should mention here that I didn’ t have any extra income. My monthly earning comprised of only my salary.
2. Using credit cards for every purchase – To worsen the situation, sometimes, I used to spend more than what I earned. I swiped my credit cards with the intention of paying back the balance next month. But I was never able to repay the balance in full. Sometimes, I even missed making the minimum payments on credit cards. As a result, interest got piled up making it even more difficult for me to pay off the balances. I also swiped my credit cards for each and every purchase. Right from grocery shopping to eating outs, I used plastic money to pay the bills.
3. Lifestyle mistakes – I had a habit of eating out every weekend and shopping whenever I wanted to. A substantial amount of my salary was used to pay these expenses.
4. Not paying heed to creditor letters – I also received letters from creditors asking me to pay off bills. However, I didn’t pay much attention toward paying off my debts.
Then, one day, my brother got admitted to hospital and I had to borrow from my friends and relatives in order to pay the medical bills. That day I realized my mistakes and promised myself to pay off my debts as fast as possible.
How I was able to pay off $70,000 in 3 1/2 years
All in total, I paid off about $70,000 – Want to know how? Frankly speaking, I thought I wouldn’t be able to repay the outstanding balance in full. So, I decided to negotiate with my creditors to reduce the debt amount so that I could pay it off. The only other option left for me was to file a bankruptcy in order to get rid of my debts. Knowing that I could file a bankruptcy, my creditors reduced the outstanding balances to about 55%. After the reduction, I needed to pay about $38,500.
I managed to pay off the debts within 3 ½ years of time. To do this, I had to plan a frugal budget and follow it strictly. Though it was a bit difficult at the initial stage, yet following the budget became easier as soon as I paid off the first debt. It motivated me to get out of debt successfully.
Maybe I need to do that.. Technically I have enough debt to file
Maybe I need to do that.. Technically I have enough debt to file bankruptcy. In all (medical bills, loans, credit cards) I owe almost $25,000...$7,000 is just in medical bills and they keep racking up by end of year I will probably owe $10,000 in medical bills, and I only bring home a little over 1,100 a month, So If I tell them that I'm thinking about bankruptcy will they work with me better? one creditor called me two days ago said I needed to pay my debt which was $800 he could give me a 15% discount but when I told him that I could not pay it in full all at once he said okay is your address bla bla and I said yes he said okay thats all i needed to know and he hung up on me before I could ask to set up a payment plan. So i went home at lunch today to find in the mail a judgement letter threatening me to garnish my wages saying I have ignored phone calls,and letters in mail...I have not ignored them they just refuse to set up payments with me... And several other creditors have refused to take partial payments they either want it in full or I have to pay it in two payments.. to me paying 500 two times IS NOT setting up a payment plan it is them screwing me over.. I have told numerous places that I can only afford $20 a check which is $40 a month and they will refuse it unless its paid in full or split into two payments. I'm at the end of the road on what to do
Nice read Olin, "I myself was solely responsible for landing i
Nice read Olin,
"I myself was solely responsible for landing into debt problems"
Same here.
1. Take ownership for the debt.
2. Divorce the debt.
3. Attack the debt.
4. Destroy the debt.
Regards,
King "Kash" Jabba Labba
Maybe I need to do that.. Technically I have enough debt to file
Maybe I need to do that.. Technically I have enough debt to file bankruptcy. In all (medical bills, loans, credit cards) I owe almost $25,000...$7,000 is just in medical bills and they keep racking up by end of year I will probably owe $10,000 in medical bills, and I only bring home a little over 1,100 a month, So If I tell them that I'm thinking