How to Get Out of Debt on a Low Income Job
For all those that think there is no way out read this and you will believe!
How to Get out of Debt on a Low Income Job
My name is Laurie and I am 36 years old. I have been in debt almost my whole adult life. If you ever have seen the movie Confessions of a Shopaholic well that’s me, I am the star. Except I bought inexpensive things such as clothes, movies, CD’s, shoes, jewelry, you name it I just like to shop. Over the years the debt added up and I got into trouble. I sometimes had no money left over for gas for my car. Another thing that contributed to my spending was that I took a lot of trips. Of course each one was well worth it but I used credit cards during each adventure. I have worked full time for the past 20+ years and live paycheck to paycheck.
Every year on New Years Eve I would make a resolution to pay off everything and not use credit cards. Everyone has a dream in life and one of mine is to be debt free. I now have to sacrifice things that I was so used to doing. Here are some ways that you can save money. Taking lunch to work everyday, going to a matinee movie (sneaking in a soda and/or snack), getting a book from the library and not buying them, going out to eat maybe once or twice a month, and what I do a lot of is renting movies. Also another way is if you possibly can live at home with your parents. It can be a good thing, no matter what your age. They are there for you all the time. I am sure that I have lost some friends in the process of saying no to certain events. In the end it’s my true friends that have stood by me. I would rather have 1 or 2 friends who really care than a million who don’t.
So here is where my story began. I was getting really stressed whenever I did my budget. So bad that sometimes my hair would fall out. Every single time there was no money left over for much at all. My yearly income was only $23,000 and after taxes it didn’t amount to much. My total debt before I started the negotiation process was estimated at $45,000, a year and a half ago. I currently owe under $10,000. That’s pretty amazing to me. I finally came clean about everything to my family and friends and when I did, I got the assistance that I needed and for that I am grateful. I also just recently paid off my car, which helps immensely.
After hours and weeks of research back in 2011, I came across a company called Preferred Financial in Andover, MA. In my search I looked for information about negotiation, debt consolidation and even bankruptcy. I didn’t want to take the bankruptcy option because I was at that time too ashamed and I wanted to pay the creditors back. Preferred financial is a debt negotiation company. I know that there are a lot of scams out there however this company was not the case. I went to the office to get my consultation and brought all my credit card and loan statements. They showed me that it could take up to 15++ years to pay off if you pay of only the minimum amount due. That’s what I was doing paying only the minimum payment. I just choose to ignore it on each statement thinking it wasn’t true.
Everyone at the company was truly professional and worked with my monthly budget to determine my payment to them. I signed up for a five-year program. I will be ending the program in October of 2013 which is ten months away. I had to close all of my credit cards that were on the program so that I wouldn’t have the temptation to use them. I know this affects my credit score but it can be rebuilt after the last negotiation is done. With Preferred Financial you pay one creditor at a time negotiating at least 40-50% of the balance. In the meantime creditors will call you for a payment and/or send you to collections. It was stressful after awhile but some just never followed the cease to communicate letter sent to them stating I was working with Preferred. You also always here about fees associated with a company. I was skeptic about this at first but after the first few successful deals I understood. They need to get paid as well after all they are working for you to help build back as I say your “sanity”.
I wanted to write this article because most people don’t follow through with things and get scared away. We all wonder about our jobs and the unstable economy. I work in retail and its crazy during the holiday season. Working all these hours is hard and not being able to save each paycheck is even more stressful. But I know that I am working towards my dream. I have many dreams that I would like to achieve like getting my own place, saving money, someday go to Europe (of course using no credit cards), and become a writer. In October 2013, I will become almost debt free and I will enjoy all of my paychecks wisely in the next holiday season. All I will have to do is pay back my family. That sounds like a good deal to me. I still of course like to shop, but only spend what I have and/or need.
“Preferred” is definitely a good name for this company because it is an ideal way to get out of debt. Even strangers want to help you, just let them in. If there seems like there is no light at the end of the tunnel always believe that there is a way out. Anything is able to be achieved all you have to do is believe in yourself and a better future is waiting. Everything stated in this article is true it just takes determination and hard work to achieve the end results. I would rather be debt free in less than three years than end up paying interest for the next 15! All you have to do is give 110% of yourself and dreams will come true. Life goes by too fast, so enjoy it without the financial distress. Whoever believes that 13 is an unlucky number I must disagree because for me it is a winning one!
Dedicated to my dad, my sister, and mom
And Preferred Financial Services,
For helping me achieve my dream.
“A man is content if he can find happiness in simple pleasures.”
Inspire in your dream that’s what I see,
Open your eyes look how bright they can be.
No longer do you need to be crying those tears,
I don’t need to waste you in the coming years.
When I held you in my hands all I wanted was to give,
Objects are not what I desire to make me live.
Do not take control of my life anymore,
Please don’t attempt to make me poor.
Money doesn’t buy love for me right now,
I look forward to the future in ways I only know how.
By being thankful for all that I have that is free,
Only makes me the better person I know I can be.
In the New Year to come I will find a dream,
That only requires a penny thrown in a stream.
I’ll make a wish and hope it comes true,
Tomorrow is a new day for the skies to be blue.