It was 2 years ago that I was over my head in debt. That’s when I started this blog in my quest to get rid of  debt. Initially, I wasn’t off to a good start because the approach I first tried failed. That changed when months later I took a different direction.

Basically what I was trying to achieve is a blog where I could brainstorm and post what I was doing to reduce my debt that would also be helpful for others to reduce and get rid of debt too. I started by accepting donations on the site but that aspect didn’t work out and was scrapped because most of the people who were visiting my site were also in the same boat so hardly in a position to help anyone else out. And really when you think about it, no one should expect anyone else to bail them out and just take action in getting rid of their debt.  The reality is there is no overnight solution and it’s going to take time to eliminate it.

To motivate myself, what I did was add a live pay my debt countdown. Even if I didn’t meet the deadline date I had set, it wasn’t a sign of failure because the purpose was to have it as a motivator. Afterall I could change the deadline, and did, because ultimately I was reducing my debt and working toward my goal to be debt free.

The main things I did to eliminate my debt was cut back on expenses, sell some stuff and by making money on the internet. I would say that cutting back on unnecessary expenses and trying to earn more money are the main ingredients to really get a handle on debt if you want to be rid of it. It definitely isn’t an easy road but attainable with determination. Just be aware that there are no shortcuts and no get rich quick schemes that can get you there either.

Because I am able to create wordpress sites, I used this to my advantage. I created sites, joined many affiliate programs that my sites could earn from. I bought and sold domains/websites. I joined fiverr and offered services to set up wordpress sites, which helped me to get more work through the free advertising I was receiving and from satisfied customers. I also sold direct advertising on my sites. I mostly invested my time more than money in any online venture.  If I invested money to purchase say domains or websites it was from money I earned and at a low enough price that I would for sure make an eventual profit. 

During this time, I stuck to my plan of getting rid of debt by not using credit cards. Instead I paid cash for things. If I didn’t have the money for it, then it meant I couldn’t afford it and therefore didn’t need it. By paying cash also made me think if it was worthwhile spending that money or not. For example, when I needed a car I chose an older year one rather than pay a high price for a new one. Why would I need a new car that will depreciate the minute I get it off the car lot, when the older year one will accomplish the same things but at a cheaper price.

So from my experience my advice to others who are in a debt dilemma is to take these five steps:

1. Cut back on expenses. Eat at home, take lunch with you, turn lights off, the usual stuff.
2. Sell things that you don’t really need or can go without.
3. Downsize. If you can’t afford the big house, then sell and get a smaller house. Same goes with the car, get rid of the new one for an older one. No use trying to keep up with the Jones’ if all it is keeping you awake at night and causing you money stress.
4. Earn more money by using any skills you have to do work on the side, whether online out of your garage or where have you.
5. Pay off the high interest debt first and give lower or minimum payments to the other ones until you are rid of the higher interest debt. Then increase the payments on the lower interest debt.

When you think about it, once you are out of debt you are already “rich” because any money you have is yours and not owed to someone else. According to internet billionaire Mark Cuban, if you want to get rich you have to save money, be a smart shopper and cut up your credit cards. If you are using credit cards, then it means you don’t want to be rich.  When the right opportunities show up, you should have cash available because cash is king.

I used my site as a vehicle to get out of debt and it worked.

Take advantage of my free wordpress installation service & start a blog today!

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2 Responses to “How I Got Rid of $25,000 Debt”

1. Ray says:

   January 3, 2012 at 2:26 am

   Great achievement anita! I used to have a similar debt just like yours. It was mainly due to college funds. I couldn’t get a job nor raise any money to pay off my debts. But cutting expenses little by little is a great way to start cutting your debts, and you’ll be seeing some very good results within months.

   Reply
2. emm says:

   January 16, 2012 at 9:06 am

   I use surveys. I do not have a debt like yours. I do however have debt around $8000. I am using pretty much the same methods that you have to decrease your debt. I am not rich. But, between Amazon and Cashcrate I am sitting pretty. Im currently thinking of starting a clickbank campaign. Not sure how that works though.

   Reply