Getting out of debt can be a daunting task. Student loans, credit cards, and unexpected expenses can significantly derail your plans. Having a large debt load can impact your finances by lowering your credit score or prevent you from making an important purchase, such as a home. The bigger your debt, the more difficult it can be to move forward with your financial goals. You may even find yourself dipping into your emergency savings fund or relying heavily on credit cards to bridge financial gaps.
Once debt becomes a problem, it can become almost impossible to dig yourself out of it. Out-of-control debt can make you feel hopeless, and cause you to start feeling bad about yourself. Some consumers become so disheartened by their financial state that they sink into a deep depression.
Unfortunately, debt plagues most American households. The most common type of debt is from credit card purchases. The average household with credit card debt has balances totaling roughly $16,061, according to a Nerd Wallet study. Furthermore, households with any kind of debt owe about $132,000 overall (that’s including mortgage debt).
If you’re drowning in debt, you might start to feel like you’ll never pull yourself out. However, it is possible to overcome these circumstances. The Cheat Sheet spoke with four individuals who managed to conquer debt, despite making a middle class or entry-level salary. Read on to learn more about how these financial warriors finally got out of debt.