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By Rusty Rhodes
January 23, 2002

I just wanted to hopefully add some inspiration to those of you on this discussion board (Credit Card and Consumer Debt) that are coping with massive amounts of debt.

Back around 1995 or '96, I found myself with over $30,000 in credit card debt. You can add to that a car loan, a school loan, coupled with all your normal household expenses. At the time, my pay rate was $8/hour at a job that was influenced by the weather. If the weather was good, I got 40 hours. If the weather was bad, I might get 20. I did manage to make an extra $100-$200 on some weekends playing lead guitar in a band. However, when we played on Casino cruise ships, I might take home $70.

So you can imagine how overwhelmed I became with a debt ratio of approximately 175%!! [Ed. Note - Debt ratio is your monthly income divided by the amount you owe in minimum monthly payments to your creditors.] With finance charges figured in, you can see the predicament I was in. After recovering from my fainting spell, I knew I had to make serious changes, and bankruptcy for me wasn't even a remote consideration. I took several steps over the ensuing years to gain control of my finances. First of all, I got a better-paying job. I realize not everyone can always do this, but many times in life, people are afraid of change, and they remain where they are out of comfort. I too fear those changes. You ask yourself "what if I don't like the job?" or "what if I'm no good and they don't keep me?" etc. For me, however, the fear of staying like I was far outweighed the fear of making changes, so the answer was simple.

Secondly, I utilized knowledge that I already had. I "tapped my internal resources" so to speak. I had a degree in music from the State of Minnesota, so I used it. I quit the band I was in, started my own, and starting playing large venues making $500 for one 45 minute set as opposed to $100 for 3-4 hours in rowdy bars dodging Jack Daniel bottles. Again, not everyone can do this, however, most of us have some sort of skill or hobby that they don't realize can be used to generate extra income. Good at math? Be a tutor. Can you weave a rose out of a palmetto bush? Sell them at a consignment shop. When the odds are against you, creativity can flourish!

The third step was debt consolidation. This step was probably the hardest, in that it's hard to stay disciplined when you can't see the light at the end of the tunnel. But, I kept paying, and paying, and paying, and paying, and... well, you get the picture. Add to that the setbacks like your car breaking down, a new girlfriend that loves to shop and party... err... uhm.... I mean that was my friend's setback, yeah, that's it... and it can get very difficult to stay focused on getting out of debt.

In 1997 I came up with a five-year plan. In five years, I was going to get married, have a family, buy a house, and get out of debt. So I retired completely from music and focused on "getting a life" shall we say. Fast forward to today. Today I am debt free, with approximately $20,000 in savings and investments, and am in fact going this very afternoon with my beautiful wife (not the expensive girlfriend!) whom I married on April Fool's Day in 2000 (imagine that!) to sign the contract to purchase our first home. And, I've saved the absolute best for last. Because of my outstanding credit rating, I am approved for "fast closing" in 20-30 days, which is important, because that lovely wife I just mentioned, is expecting our first child (a boy) on February 24th!!!!

Five-Year Plan. Check.

[Do you have a success story to share about how you got out of debt, or made some great strides with your personal finances? Tell us about it on our Credit Card and Consumer Credit discussion board.]

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