Here's one for those "I'll never get out of debt" naysayers. It once again reinforces my contention that it's not what you make, it's what you spend that determines your financial health. Maybe Michael Jackson and Mike Tyson could learn something from this guy.
Check out the story of Greg Gallagher who racked up $12,000 on credit cards over 15 years. One day he realized how much he had paid in interest over those 15 years and decided to do something about it. He developed a plan, was aggressive about it (almost half of his admittedly low pay went to debt reduction), cut his expenses, and in a little over a year, he's debt free. Now he's investing for retirement and saving to buy a house.
Here are all the reasons he had not to succeed:
- He had a small income
- He needed "things" (like DVDs, eating out, etc.)
- His debt was too big
I've heard all these excuses and more. I'm sure Greg had heard them as well. But instead of use those excuses, he took action, made some difficult changes, and is now far better off financially. If he can do it, so can you (or someone you know). It's just a matter of choice.