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A Case Study on How to Get Out of Thousands of Debt – Part 1

A Case Study on How to Get Out of Thousands of Debt – Part 1

In the year 2008, John’s family had an impressive debt of more than $26,000. It was then that they made an important decision: Before taking any more personal loans, they would pay all their debt off. Thanks to that decision, a plan and much discipline, John and his family now are completely debt-free and even expect to put all 100 percent of the amount down for a house without asking for a personal loan.

Here is how John and his family managed to do this and to stay personal loan-free:

Changing Mindset and Saving

To start, the first thing that anyone struggling with debt should do is to get in the mindset of saving a getting out of debt. At first it might not be easy, especially when John had to try to get also his wife and family in the same mindset. His wife was in nursing school at the time, so she wasn’t as willing to be as radical in this approach as her husband. Still, little by little John started to talk to his wife about all the benefits of becoming debt-free and of not owing any personal loans to anyone, until she started to catch up to his enthusiasm and to realize that his radical approach would indeed bring benefits to the family in the long run.

Then, both her and John finally started to get rid of even their most precious stuff that was not necessary and started selling it on eBay and Craigslist. Then lo and behold! Their debt started to disappear and they, motivated by it, realized that the radical method they were implementing had worked. Even better: They achieve all this without even a single cent of personal loans.

After that, they started to speed up the process even more, and in an impressive 20 months they were already out of debt. Not only that, but they actually also managed to save $2,000 during the first couple of months of summer to have as an emergency fund.

Keeping Your Resolution

A lot of people would’t even think about achieving this the way John and his family did. They cut a lot of their regular expenses, completely forgot about personal loans and started living a frugal lifestyle. All that mattered was to get out of debt, even if some of their approaches bordered the extreme.

For example, one of the most radical measures they undertook was to sell their $8,000 car, which immediately helped them knock out a huge chunk of their debt.

But not only did the sell their car, they also sold other things, even holding yard sales and such. Thankfully, by the time they got rid of their debt, they had learned so much that they even started a small eBay business. They journey to becomes debt-free had changed them completely for the better.

But it was not all that simple. I the way to get rid of debt and to completely forge personal loans, they had to also get rid of many things that they loved. John for example, had an Xbox 360 and a bunch of games which he loved and played a lot, yet he sold that and even got rid of their flat-screen TV despite both of them loved it.

All of this might sound overly hash of course. But imagine being able to think about getting a new home without even considering a personal loan.

That is the kind of reward that makes it all worth it.

make sure to check out the website to find out what else did John did and learnt from his experience that made it even easier to get rid of his debt and of personal loans.