Debt Free 2008 - The challenge
Written by Khalid Al-Khames on January 22, 2008 – 12:01 am
The challenge I face to become debt free is one that is more of a mountain than a molehill. I have 4 credit cards, 1 overdraft, 1 student loan and a graduate endowment (which I may not have to pay, it is dependant on your circumstances). I am not going to state the exact amount I owe, but its probably closer to £10,000 than it is to £5,000!
A lot of money I know, and now something that anyone likes to have hanging over their head. Breaking it down reveals where the debt lies and how it is repayable…
- 4 credit cards -Payable month, I’ll have cleared two with the sale of Kortaz.com.
- 1 overdraft - High interest rates charged monthly so this is a priority.
- 1 student loan - Payable when you earn £15,000 a year or more (which I do).
- 1 graduate endowment - A one off fee of £2,000 payable once you graduate.
My first debt attack will be on the credit cards. Selling Kortaz.com and raising $2,000 will clear two of these and leave me with some cash to spend on new projects. I may end up selling my entire network and starting afresh, I need to think of a new idea first before I commit to losing everything!
When the credit cards are clear I intend to then build up some savings and get out of the red and into the black. Finally, the debt associated with gaining a degree is the last on my list as the interest is minimal and can be removed from my monthly salary automatically.
I suggest you subscribe to my RSS feed if you want to learn how I am going to do this. I intend to clear my debt by the end of 2008 and build up some savings, probably generating overall between £5,000 - £10,000 in addition to my salary.
Good luck with your persuits,
Khalid.
Tags: clearing my debt, debt free 2008, debt free challenge, making money online
Posted in Business, General, Monetization, News, Projects, Transactions |
January 22nd, 2008 at 2:02 am
Good Job with your sale of Kortaz.. $2000 That’s more than I thought you would of gotten for it.
That should really assist in your getting out of debt.
January 24th, 2008 at 12:11 pm
Although I don’t have an online income (and hardly much of an income offline!) I would probably say ‘NO’ to selling the entire network.. It’s best in the long run to keep at least one project that’s earning something up and running - otherwise, you’re back to square one
**Unless you get fabulous offer of course
January 25th, 2008 at 12:13 am
Rory - Yes it was a good sale but with the site making $170 per month I was only asking for shy of 12x revenue. Usually I ask for 24x!
Natan - I agree selling a network that is still in its infant stages is not always wise, especially if there is room to grow and generate further revenue. I think I’ll hold off for a bit, it was just an idea anyway.