Debt Settlement Story – $130,000 of Debt Settled For $40,000

This is the 3rd installment of my Debt Settlement Story.
When I look back on what happened, the writing was on the wall. If I had been smart enough to have a business manager, this would have never happened.
In 2004, things were going great. I was newly married, had no kids, no debt and had just bought my first home. I was composing music for the hit television show Joan of Arcadia. Money was no object. I was like a kid in candy store. Just 4 years earlier, I was living in a mini-van with my wife (then girlfriend) touring the United States as a folk rock duo, Dogwood Moon. We were lucky to make $5,000/month and if we did, we felt like we had money.
All of sudden I got a lucky break and I was making well over $400,000/yr. I had no debt aside from my home. My savings account was List Of Property Developers In Indonesia steadily growing and about to hit $100,000. Neither my wife, nor I, could spend all the money. It was nice, to say the least.
We went about our business for the next 2 years. Saving a bunch and spending a bunch. I justified my spending because I had a great job and was saving a butt-load of cash every month. Why not spend!?!?
Mistake number 1:
ASSUMING THE GOOD TIMES Home Buying Checklist After Accepted Offer WILL LAST FOREVER
Fast forward to 2006.
• My TV show got canceled.
• The economy tanked.
• The real estate market tanked.
• My interest only 2 yr ARM was about to be called.
• My wife gave birth to our first beautiful child.
• None of my contacts in the biz were working.
• I went thru all of my ALL $100,000 of it.
• I borrowed another $80,000 from a line of credit on my house.
There were a lot red I ignored them.
I kept thinking that big gig was right around the corner. Well guess what? It wasn’t.
But that didn’t stop me. I kept acting like I was still making a lot of money. I had the POTENTIAL didn’t I? Why severely adjust my lifestyle when things will pick up any minute?
By the end of 2006, I finally made some changes. Here’s where I stood:
• I sold my home for a profit.
• I paid off the $80,000 line of credit.
• I had about $80,000 in cash profit from the sale.
• No job, but lots of prospects.
• Ignorant hope that everything would just work itself out.
Instead of socking that money away and downsizing to an apartment within our means. I did what any wide-eyed monkey with a little bit of money and the ignorant hope of future success would do:
I BOUGHT ANOTHER HOUSE AND SUNK ALL OF THAT MONEY INTO REMODELING IT.
You see, I had turned a nice profit from my first house. That was easy, right? It would happen again, right. WRONG. That wrong assumption was the straw the broke the camel’s back.
From July 2007- July 2009 I dug myself into the deepest financial hole of my life.
Here were my other BIG MISTAKES:
• I lived beyond my means.
• Instead of saving some of my small real estate profit, I put it back into the sagging real estate market.
• I continued to spend most of my time trying to get gigs in the TV market – which had crashed.
• And finally: DENIAL, DENIAL, DENIAL!
In July 2009, things came to a head. I was $130,000 in debt and living off my lines of credit. I had 2 more months of that until there would be no choice other than bankruptcy.
Desperation is the mother of invention. I would feel humiliated to go bankrupt, foreclose on our house. I couldn’t let myself be a Hollywood though I already was!
After 6 weeks of research I came to the conclusion that debt settlement was the right choice for me.

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