- Formulated a budget: I used a couple of free online budgeting tools that helped me plan a budget for myself. This gave me a fair idea of my income and expenditure. I realized that I was earning enough to afford a decent living but not enough to pay off my debts or indulge in any luxury products. So I had to adjust my spending habits accordingly.
- Cut down expenses: After I had planned the budget and then studied it, I realized that I had to cut down on my food expenses. That is where the majority of my income was going. This was because I loved to eat out at fancy restaurants. What I did not realize was that, this was leading to an excessive amount being spent on food when I had no real requirement of that expenditure. So I restricted myself from eating out and switched to good home cooked food.
- Considered additional income options: It was impossible to manage the outstanding amount I was to pay with my fixed salary. So I considered various income options that I could opt for. I finally decided that online money making would be most convenient as I could work at my own convenience, whenever I got time from my hectic job. I looked for various options and finally decided to opt for writing e-books. This was a very comfortable option for me, as I was into writing from a very young age. The profit margin was also huge and helped me pay a huge part of my debt.
- Decided to settle my debts: I wanted to pay off my loans as quickly as I could. Debt consolidation was not a debt solution that I could consider. This is because my financial situation would not let me pay off the debt completely. Thus, I had to opt for debt settlement. I was lucky that my creditors reduced my debt by 44%. The reduced amount came to $35,400. I had to pay this much instead of $60,000, to settle my debts completely. Whatever excess cash I had or earned went into paying the debt and in about 2 years I was completely debt free.
This guest post is written by Jason Holmes. He 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 consolidation and debt industry, with his e-books he tries to impart to people the different situations and simple debt 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'.