Today I share an inspiring story from a friend, who managed to work their way out of debt. Read on to find out how they achieved this:
As I sat down on a rainy Sunday afternoon, stirring my bowl of steaming ramen, I was immediately transported to my early days of 2020. My only staple during these tough days was a bowl of ramen noodles as I had a mountain of debt giving me sleepless nights.
I recall sitting on a rickety chair in my one-room apartment surrounded by unpaid bills. Overwhelmed by my situation, I decided that I wanted to take charge of my situation and finally break free from the shackles of debt.
Let me be honest and tell you it was not a very easy task for me. It took many years of careful planning, resilience and personal sacrifices but I can finally say it was all worth the effort.
So, if you have ever been in this situation as I once was myself – then let me tell you about my escape from the debt. Hopefully, you too can learn a lesson or two from me.
How It All Began?
My descent into debt was not an overnight scenario. Let me take you back to the dark and defeating days of 2020. I was searching for opportunities to launch my career right out of college. With a degree in my hand and a mound of student loans to pay off, I needed to start making money real fast.
However, it seemed as if the universe seemed to have other plans. I feel like life challenges us with the most unexpected situations purposely. For me and many others, this unexpected challenge was the COVID-19 pandemic. In a volatile business environment, jobs were scarce and the few interviews that I managed to land would eventually end up in polite rejections.
Desperate to make ends meet, I signed up for two part-time jobs that needed employees around the clock. One of my part-time jobs was to work as a Manager at a local departmental store.
I was lucky enough to land the job at the outskirts of Northampton but it required me to drive a few hours. My journey really wasn’t glamorous. I started my day in the wee hours of the morning as my first shift started at 6 am as a Manager for the departmental store. After working a 12-hour shift, I would come home, sip on a bowl of ramen and head over to a local cafe to work overnight.
In fact, while I was driving across town one morning, my car broke down and when I took it to my garage, I apparently needed an urgent repair and an MOT test. Guess what? I didn’t have money for either. Fortunately, I found a garage that repaired my car and helped me get an MOT in Northampton on a pay-later basis. While it was incredibly helpful, it still piled on to mountain of debt.
How I Got Myself Out Of Debt?
I know I am not the first person in this situation. Thousands like me suffer from the same problem. That’s why I wanted to use this opportunity to help you understand what you can do to make a difference in your situation.
1. Look for Different Types of Loans
If you want to break the debt cycle, start by making strategic use of loans available in the market. Please know that not all loans are made to push you down a debt hole.
For instance, I relied on emergency loans which I felt were a lifeline in my dire situation. Given my low credit score, no one else would lend me any money. In such times, these were a blessing as they helped me pave through overdue bills and immediate expenses that I simply could not push forward.
To be successful with these loans, keep in mind that they should be used to stabilise your finances and not to accumulate more debt. Make sure you maintain a repayment plan so these loans aren’t a burden in the long run.
2. Create a Well-Stipulated Budget and Savings Plan
Trust me when I say this, meticulous planning can save you tons of money and effort in the long run. Establishing a strict budget and saving plans helped me stay afloat for a good year. I recall tracking my income and expenses regularly and being extremely mindful of where I was spending.
This helped me identify areas to reduce my costs and prioritise my spending better. I would highly recommend you allocate a portion of your income towards a savings plan, no matter how small they are. This acts as a buffer against financial emergencies that might arise in future.
3. Ask for Professional Help
Sometimes it seems impossible to break free from the debt cycle, especially when you need to do so all by yourself. However, what we forget is that we can always get professional guidance from people who deal with money for a living.
During times of stress, it is always good to reach out to a financial advisor, these professionals are well-versed in the nitty-gritty details and can actually make a large difference.
I was fortunate enough to have one of my university classmates guide me through the intricacies of finance, which enabled me to make wiser decisions and avoid debt. To those drowning in debt, do remember that this isn’t your final place. You too can rise from this circle and break off from financial worries. If I do it, you too can.
To Sum It Up
Finding your way out of debt can often seem daunting but during times of such distress, it is important to remain calm and start from scratch. Work your way backwards and look for different types of loans that can help you stay afloat.
Moreover, don’t shy away from seeking professional help as these experts can create a well-defined budget to ensure you find yourself free from the endless debt cycle. It’s time to embrace financial freedom! Hope this article makes a difference in your life!
I hope this helps someone. Thank you for sharing with us.