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How I paid off all my debt.

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Okay. First off, I do have one advantage. No I was not born wealthy. Actually quite the opposite. My advantage is that I am single. I have no kids. This made it a bit easier for me than it may be for someone else but I believe this plan has potential for anyone who has the guts and willpower to put it to use. This is not an easy plan… but it works.

Okay so I had around $7000 left on student debt, around $6000 in credit card and miscellaneous debt. All of which was in bad default. I owed around $28,000 on my home. My only true asset was I owned my run down car free and clear. So in total around $41,000.00. That is a lot of money for someone who makes $550 per week before taxes. One thing was that my home was financed through my boss. Yes. Another advantage I guess but I still owed it and had to pay it. My mortgage was pulled from my check weekly at $130 per week.

This is what I did. Again it was not easy because I put myself on such a strict budget nothing extra was aloud. I gave myself a $50 per week allowance. At the end of the week if I had not spent the entire $50 I would only give myself the difference. So If I had only spent $25 that week I only gave myself $25 to bring my pocket money back to $50. Everything else either paid utilities and insurance, or went into savings. My lowest bill was a simple $500.00. Once I had $500.00 in savings I transferred it to my checking account and paid off that bill. I continued to do this for each bill. Stepping up the latter to the next higher bill. Putting everything into savings until I had enough to pay off the next bill. Now comes the daring part. During this process I did not pay any of my credit bills monthly. I only paid my utilities and insurance. As I stated my mortgage was already paid before I got my paycheck as it was deducted from it. I figured the credit bills are already in default so they can wait. I had a goal to pay everything off as I could. I would not answer my cell phone unless the number was in my directory as to not have to speak with my creditors.

My $50 allowance was for food and gas to get back and forth to work or any other needs throughout the week. That was it. Basically I lived on Roman Noodles and stuff like that. Not eating healthy that is for sure.

I started selling on eBay to add to my savings. All my profits either went back into my eBay business or into savings to build for the next bill. This helped quite a bit. I still to this day sell on eBay and my business is growing.

Well, it took three years but I did it. I actually paid off everything. The best day was when I went into my boss’s office and said “You got a minute?” he thought I was going to quit and said “Yea, whats going on?” I reached out and handed him a certified check in the amount to pay off my home. He about fell through the floor. He asked how I did it and I told him exactly what I just told you. He said “I bet it feels good.” I replied with a tear in my eye. “Yes. You have no idea how hard it has been” he agreed because when he started his business 45 years ago he put everything aside to accomplish his goal of providing the best for his family.

Thank you for taking the time to read this and I hope it helps at least one person. The only thing I can say though is if you do this… Eat healthy because it can take a toll on your body.

Hawk

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