The Moment I Woke Up
Let me tell you clearly — clearing $20,000 debt in one year wasn’t easy at all. I didn’t get any shortcut, no family support, and no fancy job with lakhs of salary.
One day I realised I was spending around $600 every month just on credit card interest. That’s when it hit me — I was not living, just surviving.
That night, I took out all the papers and bills. Credit card statements, loan documents, everything. It was all there in front of me. I looked at it and said, “This cannot go on like this. It has to end.”
Step 1: Facing the Real Numbers
I sat down and wrote everything. Every debt I had, how much it was, what the interest rate was, and when the payment was due.
Here’s what it looked like:
- Credit Card A – $7,800 at 22% interest
- Credit Card B – $5,400 at 18%
- Personal Loan – $4,200 at 10%
- Car Loan – $2,600 at 7%
Altogether, around $20,000. Seeing it on paper was scary, but at least now I knew what I was dealing with.
Step 2: Making a Budget That Actually Worked
I checked my last three months’ bank statements to see where all my money was going.
And I was shocked. I was spending too much on food delivery — almost $450 per month. Then I noticed subscriptions I didn’t even remember signing up for. And many unnecessary online shopping orders.
So, I made a strict budget. Every rupee I earned had to go somewhere useful — either for bills, loan payments, or basic needs.
I made tough decisions:
- Cancelled all extra subscriptions
- Stopped ordering food except once a month
- Sold my gaming console
- Started cooking every Sunday for the week
Cutting things was painful, but it was necessary.
Step 3: Choosing the Right Debt Method
I looked up different ways to pay off debt. Two main ones kept coming up:
- Snowball method – pay the smallest loan first
- Avalanche method – pay the highest interest loan first
I went with Avalanche. Why? Because that 22% credit card was draining my income every month. So, I paid minimum amounts on all debts, and whatever extra money I had, I put it on the costliest one.
Step 4: Not Just Saving – I Found Ways to Earn More
There’s only so much you can cut. At some point, you need more income. So I tried different things:
- Took small writing jobs on weekends
- Delivered food part-time
- Sold old gadgets and clothes
- Bought used furniture online, fixed it, and sold it for profit
In my best months, I was making $600 to $800 extra. That money went straight to debt payments.
Step 5: Staying on Track Without Losing My Mind
Debt is not only about numbers — it’s a mental game. Some nights, I felt like giving up. I wanted to travel, or just spend for fun. But I reminded myself — this is temporary.
I stuck notes around my room with reminders like:
“Debt-Free = Freedom”
“You’ll thank yourself later”
These small things helped me stay focused.
The Day I Made the Final Payment
After 12 months, I sent the last payment. It felt unreal. I didn’t cry out of sadness — I cried because I finally felt peace.
No more calls from banks. No more fear of checking my account. For the first time in years, I felt free.
What I Learned — And What Might Help You Too
If you are in debt right now, I’m not here to give big lectures. Just some things I learned the hard way:
- Face your debts. Hiding won’t help.
- Cut your spending, but also try to earn more.
- Choose a method that works for you — there’s no one right way.
- Track your progress, even if it’s slow.
- Celebrate small wins — but within your budget.
Final Thoughts
Being in debt feels like you’re stuck in one place while the world moves on. But with the right plan, steady effort, and some patience — you can come out of it.
I’m not special. If I could do it, so can you.
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