I'm going to be completely honest about my finances - since college, I have struggled to pay off my credit card debt. Since last year, I'm finally in a place where I earn enough to live comfortably while making a dent in my debt and establishing somewhat of a savings account. But it didn't have to be that way. In fact, it shouldn't have been that way at all.
Rather than putting myself on a budget in college, I put everything on my credit card and made minimum payments. I was too lazy to apply for scholarships past my freshman year, and took out more student loans than I needed to cover day-to-day expenses. Four years after graduating, I'm still paying off that same credit card and have a ways to go on my student loans.
However, I am proud to say that as of today, I owe less on my credit card now than I did when I first opened it (all expenses for a study abroad trip were immediately charged. Rather than paying off the amount, my purchases kept mounting). I am on track to have this completely paid off in a few short months. This will mark the second year in a row that my entire tax return will be applied to my outstanding balance. I've been making $400 payments each month in order to rid myself of the drinks, pedicures and late-night food runs I didn't need in college.
I am sharing this with you because the vast majority of us have debt in some way, shape or form. Some of us are much better at managing it than others. It's definitely not the most comfortable subject to discuss. I was inspired to share this with you after reading a CNN article about a woman who went on a self-inflicted spending fast. Not a penny was spent unless it was rent, bills or groceries. No eating out, no clothes shopping, not even gifts for holidays.
While most would balk at the idea of living so frugally by choice, getting rid of $18,000 of debt doesn't sound like a shabby trade either. I was drawn to her blog, And Then She Saved (which you can find by clicking on the Blog Love tab). She has some really great tips on saving money, but at the same time, shares her emotional journey of living simply in a society that encourages everyone to spend, spend, spend. Her blog has an honesty that most financial columns don't. She doesn't take the "shame on you approach" all too familiar to Suze Orman's advice, and she doesn't yell and scream about investing like Jim Cramer's Mad Money. She admits her spending got out of hand, and that she is taking measures to turn it around - a simple approach to financial health.
Since paying down a big chunk of her debt, she has since traded in her spending fast for a spending diet, and is currently blogging about her experiences on a small budget.
Wherever you are with your finances, it's never too late to start turning them around. I finally sat down and stared at my credit card bill and simply said, "Starting today, you are going down." You have to do what works best for you, within your own means. It may take some time, but you shouldn't feel guilty over the things you should've done differently. Make a plan, and move on. I'm by no means done, but I do a little happy dance with every payment I make - a step closer towards my ultimate victory.
Sticks and stones may break my bones, but I am having a party the day I send in my payoff amount!
Hi,
ReplyDeleteNice to read this post...
As you said Make a plan, and move on is certainly a good idea that everyone should follow...