When my wife and I were newlywed back in 2001, we had zero savings and facing a debt of 170,000.
Both of us are working in one of the busiest capitals in the world – Sydney.
We have to pay for two cars, a house, and a start-up business.
It’s overwhelming, but both of us are determined to get out of this situation.
Now it’s 2019; we had many other cars that replaced those from our beginning, and our house is one of the prettiest in the neighbourhood.
Let me share you the steps we followed to get out of debt.
Plan your strategy to pay
From the day we committed into paying the debt, we consider it like an emergency.
We prioritise what to pay.
Food should be from the market and cooked in our house in batches (trust me its better for the health). We simply pack it for lunch to our business place or wherever we are even in hotels or meetings.
Dining out should be minimised as much as possible.
We only have one active credit card. I think it was from HSBC. Credit cards are a huge temptation for us. Stay far away from it as possible.
I remembered our dates; they were almost always only on big movies like Harry Potter, Lord of the Rings, Moulin Rouge, and Lantana. Not that we’re complaining, but we both set a goal. Luckily, my husband and I are die hard video game players, that are the best date nights for us (hurray for nerds).
You get what we mean; we lived as frugal as possible. All our additional income will go directly to paying our debt. And I’m glad we made it through and paid the debt around seven years.
Earn more money
This can be confusing for some of you and might even say, having no money got me in this debt in the first place. But listen, what I’m saying is think of simple things to add income.
If you have a 9-5 day job, you can add a 2 to 3-hour tutoring. If you’re not into lessons then maybe a part-time cashier, cleaner or waitress. Give extra effort on anything that can add to your income.
This generation is very blessed, a good place to earn additional income is through different platforms like YouTube, Instagram or Facebook.
Why not start your blog or vlog, buy and sell stuff online or if you have talent in writing, be a content writer and get paid?
If you love your current job and is very good at it, try and talk to your boss for a raise. Start to write down your achievements, things that you contributed to the company that makes sense. You don’t need to tell your debt, instead inform them why you deserve a raise and that you love working in the company. Just remember, be patient and polite.
Earning more money is the secret weapon for paying down your debt as fast as possible.
That is it, folks. I hope this can help you in getting the initiative to pay your debt. If you need help on the legal part of your debt, give time to sit and discuss it with professional debt collectors. Good luck!