Finally after almost 2 years, my house is sold. And I should be debt-free right? Wrong. Unfortunately over time the house prices had fallen and I got behind on the property taxes.  On top of that I had a nightmare buyer to deal with, so in the end I got less for the property than I should have thanks to the wonderful realtor I hired, who by the way also took a chunk of the pie – his fat commission. One thing I learned is never sell a house through a realtor. Why? Because it always seems to favor the buyer as they seem to bring enough of them in who pick at everything to get the seller down as much as possible, and make it look like all buyers are saying the same, when in fact they are bringing mostly ones that are not “serious buyers”.  And the more desperate you get, you just get Read more »

If you are looking for some rich person to pay off your debt, you are not alone as there are many who are in the same predicament looking for a way to instantly get rid of debt. The burden of debt and feeling of desperation makes you search for a quick way out, hoping someone will sympathize and help you out of your financial mess. But in reality the likelihood of some wealthy stranger giving away their money randomly to help someone out of a bad financial situation is slim.

When I first started this blog, I hoped that I could get enough donations to eliminate my debt.  I had come across someone who had credit card debt due to lavish spending and was asking for donations on her website. She did succeed in erasing her $20,000 debt mainly through donations but from regular people rather than the rich. Her site had gained popularity and also made the news. I would say her case would be more on the rare side rather than the norm.

Sure there are lots of millionaires out there that help people but most of the time it is through tax-deductible donations to charities. Most of these millionaires weren’t born with a silver spoon as were self-made so they had worked to get where they are. Given that they probably wouldn’t easily part with their money unless there was a benefit in it for them. There may be a few that help out strangers randomly with no expectations but I wouldn’t count on it.

I was curious to see if there are any millionaires out there that would give away money and I came across this one website. Of course the identity of the millionaire philanthropist was kept secret to protect he or she. And they would only help a certain amount of requests a month up to a maximum amount each and couldn’t guarantee it would be you that particular month (or any month for that matter). Seemed like worth a try since it wasn’t costing anything.

It didn’t quite add up because they were requesting in the application that you refer some people to the site. Although you didn’t have to but if you chose not to, then some bold ad came up asking you to visit their sponsor’s website that obviously was selling something or another.  I never did fill out this application just clicked through to see where it would have led, suspecting there was some catch to this generosity and of course there was.

The no brainer was that there are ads on the site that they do make money from and are promoting programs on other parts of their site that would cost money out of your pocket.  I suppose they need to add to their coffer in order to meet all their thousands of requests. 

I also searched around and never found anyone who was helped by this millionaire due to all the anonymity of it all.  It would make you wonder that everyone helped is very good at keeping secrets or if anyone is being helped at all, and basically a gimmick to promote the site to get sponsors and make money for themself. If so, then they have mastered a clever way to make money online.

I myself am not solving my debt problem from donations…though I too wish was the case…but from the effort I’m putting in. When it really comes down to it the only person who can help you get out of debt is yourself.

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.