That’s how I paid off my debts

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I’ve collected some stories for you about how people got into and out of a difficult financial situation. I hope their stories will help you avoid or get into financial trouble.

Good Finance was a financial advisor who advised people in credit. The deal went well, with no car loans and no other loans, so they bravely started buying a $ 654,000, 230 square foot home.

The house was the house of their dreams

The house was the house of their dreams

The repayment of the loan was not much more than the rent paid so far and the bank would have given much more. (I recently wrote that both the bank and the realtor want you to get as much credit as possible. If you take as much credit as they can, you are almost guaranteed to borrow too much and buy too much real estate.

Almost immediately after the purchase, the business started to get worse, and if it was scarce, he and his wife would be affected by illness.

Less income and a lot of unplanned health spending

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Meant that they had exhausted all their reserves in two years and eventually found themselves in a $ 63,000 credit card debt. (This is far more than the average annual net income of an American household.)

Although Good Finance said he would only move out of this house in a coffin, he had to realize that the only solution was to sell the house, pay off all the loans, and start a new life in a much more modest home. They did so, moving to a small village in the mountains. You can read their story here in English.

Austin started his big life with a $ 72,000 student loan and a $ 9,000 car loan. (This amount is a good 3-year net income for a young beginner.)

In 3 years, he became insolvent. These are the tips for those who are wearing similar shoes:

Decide to get rid of your loans and act accordingly. Most don’t get past the word level, though it’s important that you do what you set out to do. I was sick of being burned out and having to worry about money all the time. I decided to change my financial status.

If you are at the bottom of the pit, do not dig any further. Do not take out additional loans for any reason.

Get in where you are. If you don’t know how much you owe, for what term and at what rate, you can’t change it. Gather all the information about all your credit.

If possible, replace your loan with lower interest loans

If possible, replace your loan with lower interest loans

Develop a strategy for how you want to pay off your loans? Do you repay the smallest amount first and then go step by step, or do you get rid of the highest interest rate first? Have a plan on how you will do it.

Look for more. Doing a career, earning more, will also greatly help you to get rid of your credit.

Finally, repay all your loans and celebrate. How good is it to live in financial freedom, isn’t it?

You can find his story here in English.

Anna was freed of $ 23,000 in 15 months of financial fast, spending only 15 months on essential things. I wrote about financial fast here recently.

Strict financial dieting had the desired effect, and in just over a year, Anna was free of all debt. You can read more about it on its website.

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