How do I manage my huge debt?
At first, I am clueless. Not that I am not financially literate. But, the huge debt is the culprit. It is not a crime to be in huge debt. REMEMBER this. However, I know that I have to manage it well in order to get out of debt. It is common to be in HUGE debt. We just don't know how much debt is the person sitting beside us in the train or bus are in.
I started to graduate with 2nd upper class honours and starting pay for my first job was high compared to my university friends. After working for a year, the high annual income qualifies me to get a card. I was not in a desperate situation to have a card. But since young, I have been looking at people holding multiple cards. In restaurant to shoppings to travelling. Credit cards are being used in many ways.
So I want to try to have a card. It is like a culture in Singapore to have a card. And the next day, I was holding not only 1 but multiple cards. Because the cards are like apply 1 get 2 free. Irony isn't it.
Fast forward, 1 year past. The total debts was already 5 digit. Time flies and I still don't feel the burden from the debt as I was still single and only has to service my education loan which cost only $500/month. I still have $2000 balance.
Few years past and the numbers just x5. I started to receive calls from the banks. I quit my job as I was young and egoistic. The nightmare started to begin.
Check out my 2nd part of "Managing Too Much Debt" next week.