I’m sure those who are deep in debt and in dire need of money have thought of it…”if only I could win the lottery I would be debt-free”. So what are the chances of winning the lottery? The odds say less chance than getting hit by lightning. When’s the last time you got hit by lightning?

It’s hard enough to win the lotto once but I just don’t get how a few lucky people win more than once, sometimes 2 or 3 times even. I remember one guy won millions 3 times over a span of a few years Read more »

Obviously when you have got yourself deep in debt,  you are on the wrong road that just seems to go on for miles with no end solution awaiting in the horizon. Whatever worked before is no longer the case and now it’s time to look for a new direction to get out of debt. This isn’t easy because you feel deflated and a rain cloud seems to hang over your head.

It just brings out to light that money makes more money and no money makes more debt. With a weight of a debt load, no wonder you would feel like you are stuck in the mud looking for a way out.

But this is where we need to pull from our inner strength to rise above it. Afterall it is only money that you need to get rid of the debt problem which with some determination can be gained.

Here are some steps that can help to get on the right direction:

1. If you are going to be late in making your payments then it’s best to contact your creditors and tell them so rather than avoid them. The stress of them continually contacting you will take away from the focus of working on a debt solution.

2.  Pay the creditors in priority of importance first. For example, your mortgage payment will take priority over your credit card bills.  You need the roof over your head and you can always give a smaller payment to credit cards if you can. 

3. If you have lost your job or need to add to your income, then now is the time to create your own job. If you have some skills that you can make money from then put them to use whether it’s fixing cars, gardening, writing, selling products, etc.  There are many opportunities to make money using the internet which will give you a flexible schedule working from home.

4. Take care of your health and get enough sleep. Spending your time worrying about your debt problems isn’t going to make them go away and can affect your health. This may be the time you need relaxation exercises the most and using deep breathing techniques, taking long walks and doing yoga can help calm you.

5. Accept that there won’t be an overnight solution to your debt problem. Take it day by day and work on finding ways to manage and reduce the debt.  Have a garage sale and sell things that you don’t really need to bring in extra cash. Tighten your budget and cut back on unnecessary expenses.

Although dealing with debt is a real pain in the neck, not to mention a big hole in the wallet, we have to see it just as a hurdle…a challenge…that we need to tackle and overcome.

When you are deep in debt, not only do you need to find ways to get out of debt but you need to set a time period to accomplish it. However you got there is no longer the issue as it’s part of life’s lessons to learn from and now action needs to be taken in order to eliminate the debt.

My goal is to be rid of $25,000 in debt in four months (16 weeks). That may seem like a short period of time as it took longer to accumulate it, but I would like to beat Karyn who eliminated her $20,000 debt in 20 weeks through her save karyn website some years back. That’s $5,000 more and in one month (4 weeks) less than her. I figure I am putting the pressure on myself but hey I am sick of being in debt and want to show people that anything is possible with pure determination.

I created my blog simply for this purpose, as a vehicle to get out of debt. I am asking for people to donate cash or buy products off my site to help me reach my goal. Just think if 25,000 people each donated $1 or 12,500 each donated $2, that is all it would take for this challenge to be a success.

So what is the target date to be debt free in this challenge?  I started this blog October 7, 2009 and counting 16 weeks ahead, that would make the target date January 27, 2010. Mark it on your calendar and come back often to see my progress.

What will you receive in return? Not too much…other than some entertainment, useful tips and the privilege to help someone get out of a bad financial situation.  Not only that but, in the laws of karma, by helping that person can bring good in your life and someday when you need help you will be helped too. Just think how the world could change if people came together like this.

Please join my debt-free challenge, get the word out and make a difference!

*Update: The four month challenge was realistically too short of a time to get rid of debt. What I learned is just as debt takes time to accumulate, it will also take time in getting rid of it.  I though have been steadily reducing it and in a much better position than before. Honestly, there really is no easy solution because there are always hurdles along the way to overcome. What I have been doing is cutting back on expenses and finding ways to make more money.

You may be wondering how does debt suddenly appear, then multiply like rabbits and then run you over like a train.  Well it’s quite simple it takes A + B to equal C (in this case D for debt). An event takes place that triggers another event to occur and then the combination of the two is the end result of it. For example, a brainless idiot cheats on his wife, gets caught, is booted out, left homeless, rents a 5-star hotel or sleazy motel (depending on what is available on his credit card) for the night or month, and next thing you know is involved in a long-battled divorce action and is now owing huge amounts of legal costs, alimony and child support for all his trouble. Of course this is an extreme case and most don’t need to resort to these measures to get themself deep into debt.

Debt overload can be caused from various circumstances from a job loss to overspending habits. Once there it isn’t easy to get out of and you have to scramble for solutions to reduce or eliminate it…or pray it goes away.