Coming to Terms with My Debt Truth
Let’s talk about my biggest debt failure…
My biggest debt reduction failure has been my attitude. No one forced me into debt. I have no good reason to be here and - worst of all - I have nothing to show for it except several fat paper statements mailed to me like clockwork each month.
I went from zero debt to over $38,000 in a few short years - not including the massive home debt I took on last year. My constant attitude of ‘I can pay for this later’ or ‘I’m young, I’ve got the rest of my life to make tons of money’ has caused me to charge everything from dinner with friends to a pair of socks at Target.
My spending sprees were fueled by my high salary and my dangerous desire to constantly live above it. I had to have the best of everything and I had to have more than any of my friends.
I’m embarrassed to admit that my attitude was what also kept my blinders on to exactly how much I owed. It may sound confusing but this is easily explained. My $38,000 is divided into about 7 different credit cards and loans. It was easy to send a monthly check and never, not even once, add up a total.
Despite 10 years of failure, my attitude is what finally woke me up. After writing another $600 payment check to a credit card, I reviewed my statement history and realized I had been charging at least $600 a month on that card. Not only had I made no progress…I had gone more into debt and was precariously close to the credit limit. I was finally fed up and that, my dear friends, is where my story starts.
It is time to shed this heavy coat of bills and finally be debt free.
Posted: November 21st, 2008 under Debt Reduction.
Comments: 6
Comments
Comment from Patrick
Time: November 21, 2008, 6:17 am
I am subscribed to your blog to watch your journey out of debt. I hope you are following Trent every day over at the Simple Dollar, you should absolutely subscribe to his site if you are not already.
I myself have 34 thousand in student loan debt, but I also have half of that much in savings and investments right now. So I am going to follow your progress closely because I feel like I am in a similar situation.
Good luck to us both!
Comment from Mike
Time: November 21, 2008, 7:46 am
The first step to any problem is first admitting that you actually have a problem. Most people in your situation are probably still in denial. Next step will be to make a plan about how you are going to reduce that debt. Blogging about it, is also going to be a huge help.
Comment from Barbara
Time: November 22, 2008, 4:13 pm
Rebecca, It is refreshing to read about your journey. I hear also that keeping up with the Jones’ is such a myth. I have a question for you…did you cut up your 7 cards yet? Best to you on this path to debt freedom.
Comment from Michelle
Time: November 23, 2008, 8:03 pm
Best of luck to you - I know exactly what you’re talking about and I know that you can be successful in your journey!
Comment from steve
Time: December 6, 2008, 2:12 pm
That is why it is very important to have a spreadsheet or other device for watching your budget. You can keep your eye on a master figure and not be distracted my the multiplicity of accounts.
BTW, YNAB is an excellent program and their community is good too if you are not a spreadsheet jockey.
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