As human beings, there are some traits that we all have in common—two hands, one heart, red blood, and, unfortunately for most of us, a wealth of debt.
The average American carries a $47,000 debt load, and as a nation, nearly $2 trillion of our collective debt is either delinquent or 90 days past due.
Part of the problem in figuring out where to begin getting out of the red is knowing who to turn to for help. Maybe you're too embarrassed to fess up to your issues or you can't afford a financial advisor. So you might pick up a $20 self-help book or enroll in a $200 debt makeover course online.
Save your money. Some of the greatest advice out there can come from the person standing next to you in line at the grocery store. To prove our point, we've rounded up 10 truly inspiring stories of real consumers who faced their debt head-on and managed to come out on the other side.
Carrie Smith, 28, found herself $14,000 in debt at age 25. She dug her heels in and paid it off in a year.
Who she is: Smith is an ex-small business accountant who dedicates her time to helping entrepreneurs manage and make more money.
Her debt wake-up call: "Three years ago ... I started thinking about what my life would be like as I got old and grey. I just finalized a painful divorce and found myself with a mountain [$14,000] of debt. Not exactly what I pictured for myself at 25 years old," she says.
How she paid it off: She started by tackling her credit card debt, as it carried the highest interest rates. For motivation, she made a timeline of her progress and used the free debt payment tool www.readyforzero.com to come up with a payment plan she could handle. Then, there were sacrifices: Giving up cable, a gym membership, tanning/salon visits, vacations, dining out, and going to the movies. To up her income, she freelanced as a writer.
With a Master's degree under her belt, Kari Gordon went into denial about her $30,300 loan balance. It took four years but she finally paid it off.
Who she is: Kari, 30, lives in the greater New York City area and works at a non-profit.
Her debt wake-up call:"When I finished graduate school, I was in student debt denial. When the first bill arrived, I stuck it in my bill basket and pretended it wasn’t there for a week...For several months after I got that first bill, I paid the $350 minimum payment. With each electronic debit from my checking account I hated myself and hated my decision to take out student loans. Being in debt made me miserable!"
How she paid it off: Gordon will be the first to tell you there is no secret to paying down debt. She broke her debt down into more manageable amounts and made a strict budget. With time, she was promoted at work and took up extra work babysitting, filling out online surveys and freelance writing. She also got a roommate, started cooking meals at home and got rid of her car.
Grayson Bell, 29, financed $50,000 for his small business with three credit cards and hit rock bottom during the recession. He paid it all off within 4 years.
Who he is: Grayson, 29, lives with his wife in Raleigh, N.C.
His debt wake-up call: "After the economy took a plunge in 2008, I decided to get out of my business. It was taking a toll on my personal life and my health. ... Though I was done with my business, I was not done with the damage that it left behind. Four years of personal and business related expenses went onto my credit cards. My ending balance was hovering around $50,000. Seeing this balance made me sick to my stomach. I never knew I could accrue so much debt and have so little to show for it."
How he paid it off: Together, Bell and his wife canceled cable and got their Internet with an over-the-air antenna. He worked freelance jobs and kept track of his progress on a white board. Rather than rely on pricey central air conditioning, he bought a window A/C unit, which cut their bill by 40%. To help with his credit card debt, he capitalized on balance transfer offers between credit cards.
See the rest of the story at Business Insider