How I did it: I got a consolidation loan, threw out the credit cards, and refused further offers of lines of credit. I'd been putting up with the large balances I'd accrued (largely through an overseas trip many yrs prior) but that pressure (accompanied by helplessness) was always in the back of my mind. My income had decreased (due to a career change) and my rent had increased at the time I started taking control: I guess these things prompted me to take stock to ensure I could pay for the basics.  

I'd never thought of myself as a big spender, but once I started living within my means I realised that I'd stopped buying CDs, books, stationery, clothes, costume jewellery, electrical gadgets etc whenever I fancied. (I realised that 95% of what I'd been spending money on couldn't be classed as a 'need' - spending had become a habit.) I started using my car less. Also did some house sitting for several months - putting up with moving around every few weeks, knowing that I wasn't paying extortionate rent. (Consider the cost of storage and the stress of no fixed address before you do this).

My income is still below average but I am much less of a consumer now. I live a more streamlined but far more contented lifestyle (including borrowing books and music from friends), and in recent months I've actually managed to SAVE too!

Lessons & tips: There are no quick fixes but things that helped me include:

• a consolidation loan;
  
• talking to my creditors (rather than hiding away);
  
• change of lifestyle! This was a surprisingly positive experience after the initial shock! Walking more and eating out less are good for your health, and having less 'stuff' means less to keep track of and worry about!
  
• taking stock of what I really want in my life in terms of the big picture gave me non-financial goals to focus on, which helped with simplifying my lifestyle by having things beyond work to focus on.

Oct 21, 05:55PM PDT | 0 comments | 2 cheers