Despite having a six-figure job and a Master's degree in business, I managed to rack up well over $50,000 in credit card debt. I have no good reason for having racked up that debt. I have nothing of value to show for it. All things considered, it's pretty embarrassing.
Way back when I only had $27,000 in debt, I thought it would be a good idea to take out a debt consolidation loan. The credit card company made it seem like such a good idea. I'd only have one payment and I'd have no balances on any of my credit cards. It seemed like a no-brainer at the time.
I wish I had thought it through.
The debt consolidation loan carried an interest rate that was double what my credit cards were charging me. That meant that half of my payments were going to interest - and only half was going to the debt I was putting into the loan.
Worse than that though was that the debt consolidation loan didn't solve anything. It put a band-aid on the situation, but didn't fix my issue.
My issue was that I spent too much. Cleaning out the balances on the credit cards didn't change that at all. I still overspent. I continued to rack up debt.
Taking out the debt consolidation loan was my own fault and my own mistake - just like all the other debt that I racked up. Taking accountability for my financial situation was a big part of my debt elimination solution.
I didn't start to get out of debt until I changed my lifestyle. I set a budget, paid cash for everything, and lived below my means. All of that (coupled with taking on an extra job) allowed me to pay off all my debt - including my debt consolidation loan - in one year.
Now I can live like a person with a six-figure income should. It's a nice life without debts to pay. Financial freedom is a nice feeling.
Michael M Thomas paid off over $50,000 in credit card debt. You can learn how Mike did it by reading his blog . Mike's Credit Card Debt website also provides a free newsletter which regularly provides money saving tips. You can learn more about it and sign up for the newsletter here .
If you are serious about getting out of debt, you should consider a product like Debt Free in Three. Mike talks about Debt Free in Three on his blog .