Nothing can greater illustrate the tough times someone goes through like a personal story.
If you have been in a difficult financial situation - especially one related to debt - you probably have a story of your own. Since debt and how to overcome it is destined to be an ongoing saga for millions of people in this country, it's important to take a look at others' stories, and most importantly, how they overcame them.
Here are four personal stories that may inspire you:
The Typical College Student
In a recent MSN.com article, Sarah Maffei told her story of being a college student with a large collection of credit cards - 16 to be exact - and $30,000 worth of debt. Thinking that she would get a great job to pay off her bills after graduating, she didn't worry about her accumulations - that is, until she found a job that paid her less per year than her total debt.
With her bills piling up rapidly, she sought the advice of a credit consultant who recommended she abstain from credit cards and even ATMs. She learned to budget, keep records, and accepted a recreation budget of only $4 a month. The Scrooge-like existence was worth it because in two and a half years, her entire debt was paid. Now she lives entirely on cash and plans all purchases on a spreadsheet. Click here to read her full story.
Living the Good Life?
Michael Thomas is an MBA graduate who only thought about making exciting purchases - happy hour tabs, high-priced dinner dates, the best seats at the ballgame. He was living the good life - or so he thought.
Even with a job paying $100,000 a year, he managed to rack up $50,000 in credit card debt. Realizing he'd made a huge mistake he began to turn his life around by bringing his work to lunch, downgrading his expensive SUV to a Honda Civic, and paying for everything in cash. Now he's completely out of debt and writes his own blog about it. Read more about his experience.
Things Got Worse Before They Got Better
A recent story published on ChristianPF.com told the story of Patrick Gessleman and his wife Heather, a couple who tried to solve a credit card debt issue by obtaining a home equity loan.
However, since they never addressed the reason they found themselves in debt in the first place (their spending habits), they accumulated $25,000 more in credit card bills. Knowing the problem had to stop, they locked up their credit cards, used a virtual envelope budgeting system and sold their house, renting instead to pay their credit card debt down quicker. Learn more about their success.
Disabled and In Debt
Sometimes we find ourselves in debt due to irresponsibility, but other times, the debt may be outside of our control.
This was the case with Kevin, who suffered from chronic fatigue and found himself unable to work. To make ends meet, he applied for Social Security Disability Insurance; however, the benefits guidelines required that he not take on any type of employment.
His first application was denied and he had to appeal, forcing him to live on credit cards until he was approved. While he did eventually receive $10,000 in SSDI back-pay benefits, after paying the attorney he hired to help him appeal his application, he still owed over $8,000 in credit card debt. Kevin is currently working down his debt by consolidating his bills through a credit union. Read Kevin's story here.
The Moral of the Story
The common thread to all of these stories is that while they all found themselves in debt, they took steps to solve the problem. As you noticed, hard work was also a common thread in their lives. This means, you too can pull yourself out of seemingly impossible-to-rectify debt accumulations with a budget, will power and dedication to a lifelong, worry-free financial existence.
(image from zzzack at flickr.)
