How I Paid off $40,000 In A Matter Of Two Years
The likelihood to pay off debt comes with several reasons and purposes. Perhaps, you get tired of debt collectors and penny-pinching or you might want to free up money for your investments or savings. Maybe, you want to spare some money for your dream vacation or travel and tour around the globe while you still have the energy and drive. These are all credible reason to eliminate your debt.
Though your reasons may be significant and life-changing, sometimes it still not enough for you to get motivated towards the idea of paying off your debt. I remember the time that my debt reached $40,000, I knew how much I wanted to wipe it out due to the reasons that I have mentioned earlier. However, despite of those reasons, it’s still hard to get some sort of motivation behind it.
In fact, if fear wasn’t instilled in me, I could still be carrying such debt at this very moment. Somehow, my fear triggers me to do everything I can to get rid of my debt. Once I have it as a commitment, it was then easier for me to pay it down once and for all for the sake of fulfilling my purpose and reasons.
Fears and Anxiety
In the year 2012, I have graduated from university with a ton of debt. This includes my student loans. Though I was composed considering that I got a job, I was then ready to take accountability in paying down my student loans. However, misfortunes arise when I was diagnosed to be suffering from an illness where I was advised to rest. I was then facing a huge financial risk and struggles.
My earnings, as well as my husband’s income, aren’t enough to suffice our needs towards debt payments and medical expenses. The more it becomes challenging for us when I need to undergo certain surgery. All this would mean expenses and a decrease in our family’s income. My husband and I had fear and anxiety about how we can go on and sustain our living.
Indeed, this is such a traumatic and difficult time in our life. We were new graduates then and we haven’t saved money for emergencies like such. Besides, we didn’t earn money as teens, which makes it hard for us to deal with the situation.
I was really scared about how we can cover our expenses. However, despite the shortcomings, I knew I had to do something. I knew I need to get rid of my debt, which is taking 25% of my pay every week. I was also anxious with what I have read about lending money to family. Then I realized that if only I can save such 25%, I wouldn’t have a hard time dealing with my situation. My debt is a big barrier for me to build solid finance. Now, that I am in this situation, I have embraced my fear and make it a stepping stone to motivate me to knock down my debt in order for me to save.
How I Started
To start with my financial goal, I have set aside small cash that can be utilized to cover emergencies or minor medical expenses. Also, I consider getting a second job and my husband was able to start with freelancing, making it possible for us to pay down our debt by making more than the minimum payment. Though our earning is enough, we did not feel confident in spending. Lucky that we’re both on the same page as to when to spend, what to spend and how to spend our hard-earned cash.
Fear As A Powerful Motivator To Pay My Debt
If not with my fear of the unknown, and the possibilities that misfortunes like such may occur again in the future, I wouldn’t have the courage and utmost commitment to prioritize my debt payment. Somehow, the fear I was compelled to pay the debt due to my anxiety. I have realized that I don’t want to be in the same situation again. I was driven and move to strategized and find ways. I was frugal. Also, I am hands-on in tracking spending and income. I have a focus on paying my debt and made sure I have saved something in cases of emergencies.
What Motivates You To Knock Down Debt?
In paying down your debt. You may need to find a motivation that will keep you from pushing and attaining your goal. As soon as you have your whole commitment to it, it would be easier for you to defeat setbacks or any uncertainties that may occur along your journey.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.