KhalidsLife.com

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.