I would like to share my story with you about how I succeeded in resolving my debt problems. Like many people, the sole reason behind my debt issues was credit cards. I realized that I was in severe debt when I started getting harassing collection calls. I wanted to be a debt free Christian so that I could worship God wholeheartedly. So, I made a commitment to pay off debts fast and manage my personal finances in a better way.
This is how I solved my debt problems:
Assessed my financial status – After assessing my financial scenario, I found out that my outstanding balance was about $82,000 on four credit cards. I was already delinquent on my monthly payments.
Planned a suitable budget – I had no other option but to plan a budget so that I could save a substantial amount of money that I could use to reduce my debt. I was not successful in my first attempt, but after modifying it 2-3 times, I was able to settle on a realistic budget.
Decided on a debt relief plan – My mission was to get out of debt fast. But I didn't have enough savings to pay back the balances in full. I decided to negotiate with my creditors and collection agencies and I was able to get the balances reduced by 45% to 55%.
Negotiated with creditors to settle debts – Although my creditors didn't agree at first, somehow I managed to convince them that I would have to file a bankruptcy if they didn't agree to my proposal. I was fortunate enough to have my total balance reduced by 46%. So, after the reduction, I only needed to repay about $39,360.
Paid off outstanding balances - I had to struggle at the beginning to make lifestyle changes so to save the required dollars. I was able to get out of debt in about 3 years of time.
Conclusion: When the debt collectors began contacting me, I could have just ignored the problem but instead I embraced this as a wake up call. After getting the balances, interest rate, and payments reduced I found the motivation to tackle the problem completely. It may seem impossible at first, but you can do it just like I did if you simply take things in steps and stay focused on the end goal of becoming debt free.
Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry,Christian debt consolidation loans and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like Credit Score The Quintessential Therapy for a Happy Pocket Take Creditors and Collection Agencies to Small Claims Court and, My Story- From Depression To a Smile.
Helping you make the most of God’s money!