After the completion of college, it was time for me to find jobs. But, then, there were only fewer job options and that too not of much worth. Then, I was $30,000 in debt with no job in hand. I was even considering higher studies. Then I realized how important it is for one and all to maintain a disciplined life from the beginning. I had also realized that every person has an individual situation and the way in which you can solve the debt problem depends on that particular situation.
However, in order to manage my own finances and pay off the debts that I have had, I planned to start something new. What I did proved to be profitable for me and I run that business till now. In fact, that is my full time profession now. I run a spa.
But, before I started with building my own business, I worked on paying off the debts. With some help from my parents, I started to pay off my debts. Then, it was not possible for me to start a business with the debt burden on my shoulders. But, if I had to pay off the debts, it was important for me to make money. So, I started offering spa treatments.
When I was in college, I used to buy some really inexpensive and natural ingredients to produce different forms of masks. We had even tried to produce soaps out of these. So, I thought of using these tactics to offer spa treatments. This helped me to fetch some money. Along with some monetary help from my parents and the money I could make out of the spa treatments, I started to pay off my debts. As it was not possible for me to handle all of the debt payments with the money I was able to earn, I opted for debt settlement. Fortunately enough for me, the creditors agreed to settle my debts. But, in addition to paying off the debts, I also followed some other tactics to manage my finances better:
- I started practicing more realistic approach – I started practicing more of a realistic approach towards my needs and my affordability. I knew that it was important for me to lower the expenditure as much as possible. So, I determined my affordability. I always tried to keep my expenditure based on this limit.
- Started to lower my dependency on credit cards – It is true that most of us are dependent on credit cards, while using the credit cards we do not think twice that later we can face problems in making the payments. So, I determined on lowering my dependency on the credit cards.
- Started savings after most of the debts got paid off – When I had started to pay off all my debts, I had made a promise to myself. This was that after I was able to pay off the most of the debt, I would start to save money for the future. I kept my promise and now I am a happy and content person as I know that I have money to fall back upon.
- Transferred balance from one account to the other – Though I had settled the debts (all were unsecured) that I incurred, after most of those got paid off, I started to transfer the balance from the credit cards that I had to the ones with low interest rates.
- Followed the wait and watch rule – Though I loved to shop, I cut down on most of that. I started to practice the rule of wait and watch before buying an item. That worked for me!!! Whenever I used to love an item, I used to wait a few days, at least 15 days before actually I could buy it. This worked like magic as the interest for that item used to fade after a few days. I still do follow this rule.
Justine Anderson is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. She holds her expertise in the Debt industry and has made significant contribution through her various articles.