Climbing out of the debt trap...

iVillage Member
Registered: 02-11-2008
Climbing out of the debt trap...
16
Wed, 03-14-2012 - 8:25am

I don't know if many of you have the goal of becoming 100% debt free eventually (including the house). That's our goal! It just seems like a vicious cycle. Work, work, work...pay interest...work some more.

The main reason for us...our future! Our children's future! It's a different world now. When I was a teen, worrying about your future financial being wasn't a big worry for the adults in my life. They also contributed to their 401k or IRA plus had SS to rely on. It's not that easy anymore. By the time we pay our "bills", what's left to save? We tuck away a bit of a savings, only to have to dip in it for an emergency!

I've completely changed the way I budget. Every regular expense is in the budget....eyeglasses, yearly Realtor fees/dues, clothing expense, birthdays/gifts/Christmas, vacation, car repair, house repair/yard work, medical expenses, plus all the regular household expenses. When I truely put these numbers together, it's no wonder we don't have much extra money in the savings. That was a real eye opener for me! I called this my TRUE budget.

I know this isn't going to be easy. Especially only dedicating $1500 month towards our loans (car, equity line and mortgage). According to my snowball calendar we can pay all this off by 2019...of course that's providing nothing happens...which we all know will! I'm giving myself 2 extra years.

Anyone else have a real eye opener?

 

      

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iVillage Member
Registered: 04-10-2003
Mon, 03-19-2012 - 8:41am
Mine was graduating University and realizing that I had over $35K in student loan debts. I bought a house young (with inheritance money as a down payment) made some dumb choices and ended up in $15K CC debt, car loan debt etc etc.

It's been hard work (I've been on this board since about 2008) but have been able to really clean up my financial life. I am left with just over $21K on my student loans (5% interest, tax deductible) under 10K on the car loan (0.9%) and no CCs. I am on track to be debt free (minus mortgage) in 3 years. I could really speed that up, but have decided I need to have some more fun in my life and am going to work for more balance while I can!

Bex -

iVillage Member
Registered: 03-15-2012
Wed, 03-21-2012 - 11:17pm

Hi, newbie (and an oldie) here!

Last fall I had a major eye opener!

iVillage Member
Registered: 02-11-2008
Thu, 03-22-2012 - 6:02am
All the stories are great and very inspirational!!! We all have different goals and comfort zones! Our main goal is retirement!! And hopefully a little travel before we are to old to enjoy it!

 

      

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Thu, 03-22-2012 - 11:58am

I think for many of us, a change of attitude is key.

iVillage Member
Registered: 10-01-2008
Thu, 03-22-2012 - 12:45pm

Hi Jiggy.....I LUV you attitude and I hope to grow more like you every day.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 03-15-2012
Thu, 03-22-2012 - 2:18pm

Thank you Norma!

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