It's not easy to climb out of a difficult deep-in-debt situation, but it can be done. Here's my story – I hope you find it encouraging.

Becoming debt-free is one of my most memorable achievements. It was also one of the most difficult personal challenges I've ever faced. When I was 26, I had debts totaling over $135,000. I had a house mortgage, two car payments, and eight credit cards (most of them had balances above their credit limits). My marriage had deteriorated under the financial strain, and as most do under these circumstances, ended in divorce. The loss of income from my wife and the added burden of now maintaining two households brought me to the brink of financial ruin.

With a monthly income of a little over $1,600, I no longer had the means to make the payments on all my bills. My creditors wanted their money, and they wrote and called daily to get it. Just the thought of having to open my mailbox or the sound of the phone ringing tied my stomach in knots.

My most immediate problem was making my mortgage payment. The house had been for sale for months, but mortgage rates were high and there had not been any offers. Just when all seemed lost, mortgage rates began to drop, and I was able to sell the house a few weeks later. I used the $2,700 I made from the sale of the house to move into a small, one-bedroom apartment. It also was around this time that I made a promise to myself that I would never again allow myself to get into such a financial mess, and I would do everything in my power to become debt-free.

My first step was to take a hard look at how I was spending my money. If it wasn't an absolute necessity, it was no longer in my budget. I stopped my newspaper and magazine subscriptions, canceled cable television, and discontinued all entertainment that I had to pay for (movies, sports events, etc.). This was probably my most profitable move because it forced me to search for alternative ways to better spend my free time. Although I had always exercised regularly (running, biking and lifting weights), with my new rules now in effect, I began to spend twice as much time at it as I had previously. When I wasn't exercising, I was at the library reading everything I could find on personal finances. I read about budgeting, saving money, spending money, insurance, mutual fund investing, and ways to increase my income – anything that might help me improve my financial situation.