"Credit Card Offers Like Crazy"

Getting Out of Debt Stories

I began my first job at a local university at the age of 16. Soon after, credit card offers were coming in the mail like crazy. Without spending and budgeting techniques, I quickly racked up my credit cards to $22,000. Eventually, the interest rates caught up to me and it felt impossible to pay the debt off.

When I got engaged, my finance proposed a great strategy that helped me pay off all my debit in the matter of one year.

I first called all credit card companies and asked them if it were possible to lower my interest rate. This saved me money in the long run. Some companies lowered the interest rate slightly, others did not.

I had chosen my thesis topic and was about to get working on it when I found out my dad was in the hospital. He is my only family and we have pretty much supported each other through life.

After I paid off one card, I would then move on to the card with the next lowest balance and send the large payment and the minimum I would send to the other cards as before. I continued to do this with all thirteen cards that I owed.

Today, I feel confident in my ability to pay off my debt. I now have implemented budget systems such as that of Dave Ramsey's. I opened many bank accounts and allocated each account to a different spending category such as groceries, allowance, gifts, tithes, etc.

As soon as I get paid, my pay check gets direct deposited into a main account and them I transfer the funds to the other accounts. This is my "envelope" method in an electronic sense. I also cut back on my spending and limit myself to a monthly allowance.

Now that I've purchased my first house, I am back in debt but continue to pay off my loans by always sending more than the minimum payment requested.

Contributed by Leanette from Florida

USA Bankruptcy Guide : Getting Out of Debt Stories : Credit Card Offers Like Crazy