by Lisa Miranda

Created on: March 13, 2009   Last Updated: March 24, 2009

At eighteen years old I decided to dive into the reality of life and leave home. Was I ready? Looking back now I can say that I was but back then I was far from ready! I made around $80.00 a week and needed to pay rent. I was still in College and had 3 years to go. My answer, like so many others, was to charge the necessities. I charged basic necessities and nothing for pleasure but the bills began to mount and by my junior year in college I racked up $14,000.00 in credit card debit. I was left with no choice but to leave school for a year to save up more money to finish. I was determined to go back and did.

While I was out of school that year I grew a lot. I took a good look at what I needed to do to break the vicious cycle. I was living the concept of drowning in debt. I had one chance to return and one chance to break ahead. I decided to take a large student loan out to pay my tuition and all my credit card debt. This would mean 10 years of paying back a loan but it was one loan versus the 10 credit card bills I had coming in on a monthly basis.

I decided, at that time, to buy a house. I was a mere 21 years old but an affordable house would allow me to pay for my house and not throw any more money to a landlord. It was also time to change my spending habits. I needed to understand that beginning now I was going to have to pay for yesterday simultaneously with today.

I finally graduated. I felt joy and fear at the same time. I feared the reality that I would now have to begin paying on the student loans I had acquired. Joy that I was finally able to close the school chapter in my life!

My bliss was short lived and 6 months after graduation I was downsized from my position at the place I loved to work. I had a mortgage, car payment and the living expenses but no income to pay them!

I was not vain and did not care what position I took. I went from a supervisor at my previous employer to a receptionist. I once again had income coming in though it was not much. I continued to push forward with the philosophy that I could do this and I would just have to spend no more than $15,000.00 a year because I made $15,000.00 a year. I cut corners left and right. When I went to the store I would choose either bologna or ice cream but not both!

One more surprise bill would have literally paralyzed me financially. This is a very scary feeling and one you never forget! I cut up all the credit cards.

I sat down and did a budget. This actually made me feel better after the initial shock of how very much debt I had. After 5 years of living like this I was finally breaking even! All of my debt was finally manageable and when I could make additional payments I would make them.

I bought a car and closed on a house in a great area. I was so used to cutting corners and still could recall the feeling of smothering debt that not only did I continue my good spending habits but I began gaining control of my finances. This was a control I would never loose again!

I began pushing ahead at work and doing well at a stable job. I had tripled my income but did not add to my purchases or expenses unless I had to. I kept the same house and decided to pay it off. I kept the same car and it is now a 1999. It is nice knowing that if I do need to replace something I can afford to do so!

There are not many things that I have had control over in my life. Now that I have gained control of my finances I will work hard to never have it happen again! I am 39 years old and have lived debt free for 6 years.

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