My boyfriend Jay, bless his heart, has had a rough go at it so far. He hasn’t been able to find a job, so he lives with his mom. Besides GST checks, he has no income at this point. He also has no debt.
Jay’s net worth is $0.
He’s doing better than me, that’s for sure.
My debt level is INSANE to me- I never had it above $1000 before 2011. This is the breakdown:
That might not seem so bad to any seasoned PF bloggers (Claire from Blogging Away Debt is starting with over $98000), but for just over a year and a half of credit and having almost no other expenses, it’s terrible. I’m still mentally kicking myself.
My net worth looks almost as bad:
I could continue going on and on about how I shouldn’t have let it get this bad, but I’ll spare you. On the bright side, I’m at least catching it before it becomes a deep-seated habit.
My plan thus far is simple: Stop accumulating debt, and pay it down as aggressively as possible. I’ve been paying my credit card companies $300 biweekly to try and keep up with my spending, so I’ll continue doing that WITHOUT using the cards. There are some monthly expenses on the cards, which are my Netflix (can’t live without) on card #2 and my donations to World Vision on card #1. Together they come to just over $40 a month, and I’m going to keep them automated on the accounts. My problem was never online or automated spending anyways- it’s physically having the cards in my possession that caused me to get this far in debt. Everything just seemed either insignificant or an emergency. My goal at the end of my debt is to use credit RESPONSIBLY- hopefully by never having a physical card in my hand again if I can help it.
My card with the lowest balance happens to be the one with the higher interest rate, so I will be starting to pay down that one first at $225 a paycheck. It’ll be gone completely within a month. My minimum payment on the biggest balance is only $30 though, so I’ll pay $75 every paycheck onto that. With interest included, I’ll have my debt paid off completely in 6 months, knock on wood.
Before when I’d try to pay down my cards, I’d look at the numbers and feel overwhelmed and hopeless. This time, I’m ecstatic. I feel like this will work for me this time. Honestly, I can’t wait to get paid again so I can begin!
For anyone that has paid off (or is currently paying off) their consumer debt, how did you feel when you started?