Like most of the American millennials, I too had fallen into debt some years back. I was unable to juggle my money successfully between my dear mom's bad health condition and credit cards. In addition to this, I had to manage the household expenses too.
Becoming debt free was the only option for me. After the death of my sweet mom, I had no one to help me financially. I had to save the only big asset (the house my mom left for me).
I was determined to get rid of the dark phase of my life.
I had to enroll in a debt settlement program to pay off the highest interest credit card debt. It costed me dearly; I had a modest income and was unable to manage the debt settlement cost further.
I decided to try some of the money making ideas. I worked hard as a freelancer and tried to earn more.
I analyzed and modified the budget according to my income. This helped me to cut down the unnecessary expenditures as much as possible. While listing the expenditures, I realized that there were many items that I could do without. It helped me to save many dollars.
Then I decided on the mode of payment. I had decided to follow the debt snowball method of payment where I could make more than one payment against each account in a month. This helped me to pay off the debts faster. It was tough to manage all of the expenditures at the same time. But, I didn't lose hope. While making the payments on the credit cards, I had decided to lower the usage of credit cards and rather not to use those for days if not necessary .
So, while cutting down my expenses and trying to avoid additional debt, I had to decide what is important for me. Because this is how I was able to free myself from the clutches of evil debt.
Thankfully, after much sacrifice and hard work, I paid off my debts. For me, the sacrifice was totally worth it. Because, I was never good with money management. My mom always dealt with the money matters. So, in her absence, the bad financial phase helped me to learn each and every good financial practices that I was not aware of.
Initially, when I had successfully paid off the smallest debt, a sense of confidence grew in me. I was excited to become debt free completely. . I took several projects to earn more, I saved each and every dollar to make some more payments on debts. I sacrificed buying many such items that I couldn't think to avoid earlier. Finally, the day came when I was able to repay each and every debt.
It seems, using the credit card, even for an important purpose, can drag me to the past. Credit cards are becoming scary day by day.
I always loved to visit new places; I didn’t mind the cost. But these days, I only prefer small and less expensive trips. And I mean it. I have money to afford a big trip, but I am simply not interested.
Whenever my friends ask me to join them for a brunch or a dinner party, I deny. It seems like people intentionally want me to spend money.
It is becoming a constant battle to stay out of debt. It is overwhelming and making me crazy.
For me, it is a regular struggle to stay away from debt when the fact is that you have to spend to survive. Yes, I know I have to be careful when spending to stay away from debt.
I always wanted to find answers to some questions. I know I can ask a financial advisor, but I can share it with you before fixing an appointment. I don't know whether or not I want help from a psychologist too! “Sigh”
My only goal is saving money, but I want to know:
I have realized that even after becoming debt free, the journey doesn't end. I am still struggling to stay away from the clutches of debt.
Sad but true.
Are you feeling the same way? If it is, then share your thoughts and help me to overcome this post debt free fear.