debt free


My name is Sara James and I am working as an English Trainer and a blogger for last 18 months. However, I started my career as a financial manager in an MNC. Until I switched my career, I had been living high life. I never learned to save money because I was reckless with spending. My monthly salary and rental income were more than enough to buy as many things as possible.

My job was going fine until I was called by my boss who told me that the company was about to shift to outskirts within a month. I had to confirm that whether I would be able to continue my services or not. Since it was further afield, I had to step down. After a couple of days, my tenant notified me that he would vacate my house by the end of that month.

First, I took out a CASH LOAN

I felt completely broke. My monthly salary and rental income brought to a halt and I did not have enough savings unfortunately. I was badly off that I was not able to meet my regular expenses. It was not easy to get a job in my profile as soon as possible, so I thought of giving a try to another field. Since I had one year of experience in teaching under the belt, I applied to institutes for the position of an English Trainer.

After taking several interviews, I managed to get the job in a private institute that was ready to offer me £15 per hour. On an average, I could earn from £2000 to £2500 every month. I put down my previous mistakes to experience and began to set aside a small proportion every month.

“One day the motherboard of my laptop went out of commission. I had to have it repaired as soon as possible because I used to use it to make lesson plans and my savings were not sufficient.”

I took out a cash loan worth £500.

Loan amount £500
Interest £50
Total amount £550
Repayment period Two weeks


The amount seemed small, but I could not pay off the debt on time, and eventually I ended up with rolling over the loan. At each rollover, I had to pay down £50 along with late payment fees that were £20, and the amount of debt payment continued to soar by £50.

First Roll Over £600 (£550 + £50)
Second Roll Over £650 (£600 + £50)
Third Roll Over £700 (£650 + £50)

I had a foreboding that I would fall in debt therefore I decided to get an additional income source unless I found a tenant.

I decided to start my own teaching business. I chose it as I could manage both my job as well as my business unless it begins to generate revenues.

I took out a small business loan

I applied to to apply for a small business loan with bad credit. I already had space so I needed money for infrastructure. I borrowed £1000 and set up a classroom.

Here is what I borrow:

interest rate

Strategy I used

The instalment of business loan was not very large and to be repaid over a period of 12 months, which is why I could manage the repayment.

Since the cash loan added up to £700 due to rollover, I made effective strategy to settle my dues within next two-week period:

  • I sold my personal items that were no longer in use.
  • I advertised my house for renting out. I became ready to accept less than the market rate because I needed money at once. I used my rental income to pay off the debt.

After reimbursing the cash loan, I followed a serious approach to pay down the business loan.

  • Knowing the monthly payment beforehand, I set aside that chunk of money in the beginning of the month and avoid dipping into them under every possible circumstance.
  • I continued to build emergency cushion for a rainy day so that I can avoid taking out the loan.

FINALLY, I managed to pay back the whole of the debt. Though this was a bad experience, it taught me a right lesson. I stopped shelling out money after understanding the importance of savings.

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