It Takes a While to Heal

Sure we all have succumbed and used credit cards to get the latest gadgets, clothes, trips, gifts, or simply have relied on them to survive rough times.

A few years ago I started my first real job, I figured I'd be done with debt by the first months while I enjoyed my new well deserved income going out for food and drinks, 3-4 times a week and buying lunch everyday. As wrong as I was, it took me 2 years to finally end card debt, a few months to figure out how to do it, and several lifestyle adjustments.

It took several try-and-fail attempts to figure out an efficient debt-killer system. I didn't need the help of financial advisors, or ask my mom for money, or borrow more money to consolidate debt. All it took was commitment, drive and patience.

The first thing I did, was to write down every single amount I owed, including credit cards, student loans, sibling debt; everything. It was painful to watch that incredibly long list.

The first obvious steps I took, were to cook lunch, and to go out only on weekends. That saved a lot of money and I was able to pay my siblings who didn't charge interest. But when it came to cards, I realized I was just paying small chunks on each card per month and the total amount wasn't shrinking significantly.

I had to create a very strict budget that included rent, each credit card, utilities, going out, spending money, groceries and the most important: savings. From that budget, I started with the highest APR cards as opposed to the higher balance. Making larger payments on the fastest increasing balance was more efficient.

It might take a while to figure out a budget and some suffering adjusting to it, but this is how I did it. My next goal is to pay student loans faster than lenders expect.