I am one of the writers on FreebieRush and I want to share with you how I paid off my debt in a short amount of time. One of the worst time of your financial carrier is when you are all surrounded by dept. This part of life is one of the toughest to live in and the people who tend to succeed in these times are the ones’ that become a master of finance one day. Today I am going to share my story with you where I paid off a debt of more than $35,000 in just a short time of 1 year. Now most of the people will be thinking that it is not possible but the reality is that even how difficult it could be, it could be still possible. You would surely be aroused by questions like, How did I do that? Did I made a lot of new money? Did I used any shortcuts that nobody knows? The simple answer to these questions is that I just followed some simple tricks and it helped me to achieve this milestone.
One of the biggest Misconception of money is that most the people think that money can buy them happiness and if they will have more money to buy stuff they will be happy. People have interlinked their happiness with the stuffs and then to gain this kind of happiness they go too far the line and end up in some serious amount of debt and when they realize they think it is too late. If you have been one of these situations or if you want to avoid this kind of situation, carry on your reading so that I could explain you what did I do that helped me to gain this achievement.
Realizing What Debt Is?
As I said sometimes we think that money is buying us happiness and we buy products that are not useful just thinking that they would bring in happiness and sometimes for the sake of our comfort we get in to the lure debt. When we are in debt, we don’t own the products that we pay interest on, it is like that the product own us. We work all the month, get a salary and then pay that salary to the bank which is our lender. Then again in the next month it happens the same and we pay all our salary to the bank. This becomes a kind of salivary in which you work and get nothing in return.
When you will realize this fact, then this would be the time that you should take some action and think about it that now how could you get out of slavery and how can you live like a free man? When you will think about it consult it with your partner, so that you could be supportive to one another and could become a motivation for one another in the hard times. When I had this idea, I consulted my wife and we started planning about how we could get rid of this slavery.
Refinancing Your High-Interest Rate
This is a point that can play a big role in paying off debt. When you have a lower interest rate that means you owe them a lesser amount. The lesser the interest rate the less you owe your lender. Now the thing you have to do is that you have to refinance your high interest rates in to lower interest rates. This simple trick can help you to pay off the debt. You can ask your friend or family member to lend you money for a lower interest rate and if you don’t have any person to lend from then do not worry there is a company that can help you in this regard. Sofi is a company that helps people to refinance their credit card debt and on Sofi you can get a loan on a low interest rate of 5.99%. Sofi has a set of requirements that you need to fulfill and in most of the cases they accept the cards but if you have a very bad credit card then you might have a chance of rejection.
Trimming the Expenses
One of the biggest factors to pay off debt is to trim your monthly expenses. If we just live frugal, we could save a lot of money. We tend to spend more money just for the sake of comfort that we do not need. We usually buy things that we do not need and the things that won’t make an impact in our life. If you are living head to mouth and you have a big number of debt on you then you only have two situations either to make more money to decrease your debt or to decrease your expenses to save more money to pay off the debt. So this line was the cause of motivation for me and I started trimming my expenses. I cut off my movie theater shows, dine-outs, massage therapy, vacations, tours, gym subscription, cable TV and other things like that. While I cut off some expenses and in some cases I replaced them with cheap alternatives. By this I started saving more money that I used to pay off the debt.
If you want to get rid of this debt in the shortest period of time, then you will have to go extreme in this act just like I did in my case. When this was the time on me, my two best friends were eBay and Craigslist and I used them frequently to sell every unnecessary item or each item that could have a cheap alternative than that. I sold my 1 year old car just for the sake of paying off my debt and the deal I made went in loss and I sold the car for a lesser amount but the reason I did this was that I knew that If I would keep that car, I would have to face much more loses in the upcoming future so that’s why I just took this step.
In these days of my life, we use to declutter our home frequently, and me and my wife just sold every extra thing that was not in use. In every week I met buyers and made some quick cash in exchange of my stuff and just used this money to pay off my debt. When you will do that you will be able to feel like you are now controlling your finance and now you have started to pave a new road for yourself.
Compounding Interest can be lethal
When you have a lot of debts to pay off then it becomes difficult to control their way. The interest rates just increase the amount of debt you have every month. Interest compounding is one of the dangerous things and it could become so powerful that we could not control it. So instead of paying off the debt on high interest rates, you need to take some serious action so that you could break the chains of this slavery. It would test your patience but you need to stand still.
When I realized this problem, I started working to solve this, I thought of it days and night and in the end I managed to take some serious steps that I told you above. After that long journey of 18 month, by using these simple hacks, I was able to pay off my debt and now I am completely debt free and I have started investing money and making money online from home. I am just going on my way and now I have no financial problems.
Taking the Action
Now when you realize the lethalness of the debt and interest compounding, you need to take some serious actions for yourself that would help you pay off your debt. I have shared my whole journey with you and now it is up to you to decide that how long you will take this debt to. My suggestion is to do not waste your time and get up today and start working on this so that after an year or so you could see the desired results for yourself and you could feel that you have broken the chains of slavery that debt has put on you.
In the end I just want to say that this road may not be easy for you and it will test your patience to your limits but you have to stay very strong and determined on this path and have to tell yourself again and again that you can do it! Whenever you feel demotivated you have gather yourself up. You can do this by writing your goals and reasons on a page of paper and placing them on a place where you can forefront it daily. By seeing that why you are on this road daily will keep yourself motivated and you will be able to answer yourself easily. I used this simple trick and my wife supported me. So by that today I have the life that I needed.
Do comment in the comment sections if you have any question and if you want to share your experience we would love to hear you. Have a good day!