If These People Paid Off Their Debt, So Can You!


The master plan to pay off the debts!

Got debt? It can be overwhelming at times, but don’t be discouraged! With the right plan in place, you CAN get rid of your debt for good! Check out this story of one woman who paid off her debt in just 18 months.


Valerie took a multi-pronged approach to eliminating the debt. The first step was to accept reality and deal with the problem head-on. With her excellent credit still intact and sufficient available credit on multiple cards, she took advantage of the 0% credit offers available to her. With no accumulating interest, all payments went to debt principal.

“I moved everything over to a 0% balance transfer card and watched it like a hawk,” she says. “I created a detailed spreadsheet of when the balance transfer would expire and paid off the credit card where the promotion was expiring the quickest first.”

This is why it’s important to tackle your debts head on before it gets too late. As soon as you miss one payment, it’ll be extremely difficult to apply for a balance transfer credit card.

The second step was to take a hard, honest look at her spending habits. She pored over several years’ worth of expenditures and quickly identified all the areas where she could drastically slash spending — clothing, eating out, entertainment. The fact that she now shared major household expenses with her new husband was also tremendously helpful in freeing up disposable cash for debt pay down.

The third step was diligence. She created strict budgets for all discretionary spending and stuck to them. She clipped coupons and shopped sales for necessary purchases. Over time, she created good spending habits that made decision making easy — would she rather be entertained for two hours at a play or be debt-free in two years? The debt-free option always won out.

On September 1, 2015, Valerie became 100% debt free. It took her 18 months but the lessons she learned along the way has been invaluable.

– via Business Insider

You Don’t Need A Huge Paycheck To Pay Off Debt

Inspired yet? Let’s up the ante with an incredible story of a regular guy who managed to pay off $100,000 in debt while only making $7 per hour!

Nick Gabel had run a convenience store for about four years when the building he rented was sold. He wasn’t able to work out a deal to stay where he was, and he found himself both $100,000 in debt and without a job in early 1996.

He said he didn’t want to file bankruptcy because he hoped to invest in real estate again, and he couldn’t afford to ruin his credit score. He soon got a union job, working for a phone company, starting at $7.17 an hour.

He was careful to be sure the income from his second job went straight to paying off debt. Most of his debt was on credit cards, and he called all his credit card issuers to ask for lower rates. “Some reduced them to 5% and some reduced them to nothing, which helped a lot,” he said.

He reviewed his progress and strategy every month to see how things were going. He later looked into balance-transfer and low-interest credit cards and was able to help himself that way, too. That strategy was available to him because he had maintained a good credit score. (If you think it’s right for you, you may want to check out the picks for the best balance-transfer credit cards.)

He ended up using the “snowball” method to tackle his debt, paying off bills from smallest to largest, and once one was paid off, redirecting the money that had been paying that bill to the next-smallest one until all are paid off. He estimates that it took about four-and-a-half years. (He was able to leave his second job in mid-2000, he said.)

– via Business Insider

Have you got a plan in place to pay off your debt? Remember, you pay off debt just like you eat an elephant: one bite at a time!

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