My wife and I took a $30K loan for financing our new house. Though we knew the amount was very big, we were keen on taking the loan because we could not stay at our old house anymore. It was very small and the locality was not too good also and that is why we had to shift to our new house.
When we saw this new place that we are loving it now, we knew that it was exactly what we were looking for. But when the real estate agent told us the price of the property, we were taken aback. We only had $20K including both our savings and other monetary resources but the cost of this property was $40K.
We thought we won’t be able to afford it and came back to our old home heartbroken. It is only after that we found ideas to earn extra money and being confident about paying our debt on time, we decided that we will take a loan to buy our dream home.
We already had $20K and if we borrowed another $20K, we could finance our house but we thought of taking $10K more as we may need some more money in its decoration and for doing other stuff. So we headed for a loan amount of $30K and I am happy to say that we cleared off the debt within just 10 months and now we are living happily in our new house with full comfort.
Are you excited to know how we did it? Let me tell you…
The first thing that we understood by our financial position is that no matter how good our job roles and payout is, we need to earn extra money to support our dreams. It is actually evident that if you earn a limited amount of money, your basic dreams take time to get fulfilled and by the time you become financially stable for the same, maybe you lose out on something.
So, my wife and I decided to look out for income resources outside of our field salaries. And we started off with sending our respective cars for rentals. We could use public transport for a few months but the revenue that we earned from our car rentals was good enough to add to the amount of the loan repayment.
Then we sat down and made plans of what are the things from our everyday spending that we can cut off and save the amount for clearing off the debt. And we actually found we were spending too much on our everyday lifestyle and always finding ways to spend money. We cut off all the extra expenses that we were doing in the entire month and found that at the end of just one month we saved almost $1K every month.
We then quickly calculated that if we were to pay our debt within 10months then this amount can really help as at the end of 10 months we could save $10K by just only cutting off our lavish expenses.
We also decided on putting a percentage from our respective salaries to a “savings for loan repayment” box and the amount was decided to be $.50K by each and by adding up both our contribution to the savings and we could gather $10K more by the end of 10 months!
Next, we decided to use some online modes of earning in our free time by providing people online classes, creating website designs, writing content, etc. from all these extra income and our car rents included, we could manage another $10K within the next 10 months. And now, we have cleared our debt of $30K in just 10 months without having to work too hard for it.
And, to conclude
So, this is how we cleared our debt of $30K that we took from the market to buy ourselves a new house in the posh area of the US. We could never imagine that it would be this easy to repay loans, had we known before, we could have opted for it way back as living in our old home was already a nightmare.
We did not lose hope and neither should you! Just know that there is always hope at the end of the tunnel and we must use our wit to utilize every resource that we have until we can fulfill our dreams.
The art of “not giving up” is divine and we must never feel less hopeful or unfortunate. And I strongly feel that if we could pay off our debt of such big amount even before the designated time, then anyone amongst you can do that! Try harder and hope for the best!