Ok...so it was hard for me to take the jump and decide to blog about this journey out of debt...it is even harder for me to lay it all out there in numbers...but like I said, my head is out of the sand, and so here it goes.
These are just my personal credit cards...yes I have a car loan, it is at zero percent interest, so I am not worried about it...I also have a mortgage...also not listing it either. And this is just MY stuff...my husband's cards are not included...sooner or later I will get there, but right now, just tackling the consumer debt I have amassed is a big step for me...
As time goes on, I am going to be tracking my expenses, and budgeting, which will end up making me and my husband have to share the totals of the debt, and make a plan that is best for us...but I am starting this now with what I do know.
Right now...here is where it stands....
Card #1 Bal = $13,996.00, 0% until 4/12, then 23.99%
Card #2 Bal = $7,251.71, 18.74% interest
Card #3 Bal = $3,587.86, 13.99% interest
Card #4 Bal = $2,859.09, 20.24% interest
Card #5 Bal = $2,654.15, 16.90% interest
Grand total "stuff" debt = $30,348.81...
Um, yea. that was depressing in more ways then I can think of.
First of all...hello? Interest rates...guess I am going to be making some phone calls to see if I can get any of these lowered! I have never missed a payment, never been late, never underpaid...I actually have really good credit...so there is no reason I should have these interest rates THAT high. Wonder if anyone has any luck when calling to ask for lowered interest rates?
And yes...the total is disheartening. Completely terrible. In the past I have seen this...buckled down got several thousand paid off...then something happens and I "treat" myself and then boom, back here again.
So by laying it all out here...I have done 2 things...faced the harsh facts that are my reality...and looked at this and I can say...I will not see this number again...it goes down from here.
Thanks for all the warm welcomes after my first blog entry...it made me feel ok about laying this out here...scared, but you cannot face what you do not acknowledge...so this was a key step in this journey.
The scary list...laying it out there...
April 2nd, 2012 at 06:28 pm
April 2nd, 2012 at 06:38 pm 1333391934
Best of luck to you on your journey. Just keep putting one foot ahead of the other, and you will get where you want to go.
April 2nd, 2012 at 06:51 pm 1333392685
April 2nd, 2012 at 08:16 pm 1333397779
As for the "Treat" yourself part. I used to enjoy shopping and get a thrill out of it, but I realized I had to switch gears and find something else to give me that sort of fulfillment and satisfaction. For me, now it's running and doing fitness programs at the gym. I figure that is much cheaper and more constructive!
April 2nd, 2012 at 08:48 pm 1333399734
April 2nd, 2012 at 09:12 pm 1333401137
That should be step #1, this week. Apply for a low rate card that allows you to do a balance transfer. Just be sure to read all the fine print so you know exactly what you're doing.
April 2nd, 2012 at 09:50 pm 1333403407
April 3rd, 2012 at 05:33 am 1333431217
Myself, since all your debt has a high interest rate, I'd really go and do the smallest debts first, close them and work your way up. The snowball, in other words. You will need the momentum to cheer you on.
April 3rd, 2012 at 09:03 pm 1333486997
April 3rd, 2012 at 09:14 pm 1333487686
Welcome! The first step is facing the numbers, and you've done that. As someone who had dealt with fertility issues in the past (and currentlY), I can tell you that there is always hope. Adoption (international or domestic) is an option. DH and I are getting rid of the last $3,900 of consumer debt (we have $19K remaining on a student loan, and $263K on a mortgage). Once we do that, we're getting ready for international adoption. We plan on $30K for that, and we don't make that much money.
April 12th, 2012 at 04:42 pm 1334248955
Then pay the smallest card off first. Once you've done that you can take whatever money you were spending on that minimum payment and roll into another card. I used this method and paid off $13k since last summer.
Once you decide that paying off the debt is most important to you, it becomes much easier. Sometimes when I want to splurge on something, I calculate how many "months" worth of minimum payments it is. For instance a $120 splurge is 2 months worth of minimum payments on one CC for me. If I think it's worth it, I can still buy the item. 99% of the time, it isn't worth it.
Allow yourself some wiggle room. I allow myself $150 a month (or $5 a day) in throw away month. I can do whatever I want: go out to eat, buy a birthday present, get coffee, pay extra debt. Again, most times, I'd rather keep my $5 to get something I really want like a book or go to a movie than throw it away on coffee everyday.
Good luck