A lesson on debt
Written on Wednesday, 10 of February, 2010 at 9:22 pm
Finally, I now have my very own WD MyBook external hard drive! I have been planning to get one since my last birthday, unfortunately, I had so much outstanding balance in my credit card that I was forced to close my accounts and settle my debts. A friend of mine who does credit repair services taught me on how to regain my good credit standing in my other cards.
As a rule of thumb (my friend said), never exceed your credit beyond ten percent of your annual income, or you will have a hard time paying for it. This is certainly true for me. I personally have incurred charges of more than fifty percent of my annual income. I did not notice it at first because credit card companies usually offer twelve months installment plans. After several purchases, my monthly due’s were way out of my budget.
The solution was simple. Discipline.
I just needed to prioritize stuff that I really need (not the ones I think I need). I listed down the things I wanted to buy and sorted them out according to necessity. On top of my list were things that I use to get income from like a PC (I’m a web developer). I used those income generating stuff to get more income to pay for my other debts. Eventually, the sacrifices paid off. It took me a year but now I’m debt free and happy.
Right now, I have a new job and a business of my own, thanks to my PC.
So I guess I learned the hard way. Good thing I had someone to give me advice on what to do. In summary, keep cool and always keep your priorities straight. Believe me, you won’t want to end up in my past situation.
Category: finance
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