Paid it al off yesterday--SCARED!!!
Find a Conversation
| Sat, 05-21-2005 - 5:20pm |
This is my first post here...... I paid off ALL Of my CC debt yesterday! I am not ZERO cc debt. I refinanced my condo, and get this--I paid off $70k in cc DEBT! OMG, I cannot believe that I got into that situation! THANK GOD I could pay it all off w/ refinancing. But I am maxed out on that. I cannot pull any $$ out of my condo. I am embarrassed and ashamed. I am a 35 year old single woman w/ no children. This is the 3rd time I have been debt free. My first time was $20k, and the 2nd time $22k. HOW ON EARTH IT GOT TO $70k I HAVE NO IDEA!!!! I remodeled my kitchen and bathroom, but that was only about $20k of it. When I found out my cc debt was that much I felt sick, ashamed, and DISGUSTED!!!! I am still disgusted w/ myself! I did not realize until Bank One raised my rate to 29.9 %! I HAD NEVER MISSED A PAYMENT!!! I was never late, but my debt to income was too high. I make $80k/year. Then Chase raised it. How on earth are you supposed to get ahead when they raise your rate that high??? So, I know I got the last of the cash I can ever get out of my condo. This is my problem-I AM SOOOOOOO SCARED I AM GOING TO DO IT AGAIN!!!! Should I cancel ALL my cards? I need one for business--I get reimbursed for all expenses. I have never lived cash only. I am afraid that my obsession w/ Saks Fifth Ave. will grab me (I live a block away). I will get a bonus coming here soon that after taxes will give me about $7k. I HAVE NEVER HAD IT BEFORE WHERE I DIDN'T NEED TO PAY OFF CC DEBT. I am soooooo afraid of this!!!! I ordered some of the books you all recommended the other day. Hopefully that will help me. This refi was TOUGH. THe bank turned me down due to my debt to income ratio. I had to take a few different routes to make this go through. Al that could go wrong went wrong. From files being lost, loan officers out on leave, etc. etc. I felt like I was in the Twilight Zone. So it finally went through. I saw my bank acct. go from $71,000 to $1000 in 1 day after paying bills. It is Saturday night and the gilrs want to go out. Can I aford it? Do you stay home because you cannot afford to split dinner like they do? Do I go without having my hair done?? I am a blonde and get it done at a salon--I found one that does it for 1/2 of what I was paying. I wish I could do it myself but don;t want orange hair!!!!! I need to change my spending habits and I am not sure HOW to do it and MEAN it!!! I sold some stuf on eBay that I didn't need. I made about $600 :) I cleaned out my home ad garage and tok a truckload to charity today, so I "de-cluttered." All Iaws thinking is that THERE is where my $70k went!!!!!! Sorry so long but I am TERRIFIED!!!!!
Thanks for listening,
Danni in CA

Honestly I don't see where you are debt free with a $70,000 loan. You moved small debt to 1 large debt. If you don't cut up those cc's you most likely will end up in cc debt again. If you use the one for business and pay off the amount immediately after you are reimbursed, then I would keep that one. If you don't stop now, a time will come and your entire paycheck will be paying bills. Right now my situation is close to that. Starting in September, I will have a very low amount to live on. I have to feed myself and my 2 lil ones. Plus have gas and other misc items that I will need. I finally hit that breaking point and have learned this really stinks. With a severance pay and income tax return next spring, I WILL be paying off 90% debt. I can't live like this, too stressful.
If you don't have the money to go out with the girls...then you just can't go. Maybe you and your friends can set up something monthly where you meet at your house, or one of their's and have girls night out. My sister in-law does that every month. Some end up staying the night.(drinking/driving reasons) Every week friends that I have eat out Wednesday night and Friday night. Been doing it for the last 3.5 yrs. But now, I can't do that. I just have no money for it.
Now about the hair issue. I am a blonde. I have been doing my hair myself for the last 5 yrs. I haven't turned it orange, purple etc... I dye it and put highlights in it. I have learned what products are best. I have gone to a salon a couple times but paying $115 each time was ridiculous, especially when I pay $20 to do it myself. My hair is very important to me, I guess it is a good asset about myself.
As for the spending habits, I know what you mean. In the last month I have totally changed my ways. I no longer use my dryer. Which is hard with 2 lil ones but I completly hang everything to dry. I bought flourescent light bulbs for lamps/lights, I make sure tvs, lights etc are turned off if no one is using, I use just cold water when I use the washer machine. I just got my utility bill and it was $40. Usually this time of year it is $100. I have never been more excited of a utility bill. That is one way I cut down.
The second is eating out. Sometimes my household is hectic and before I know it, its late and not really enough time to cook something up. So we go and pick something up. When I go to the store, I only buy what we need. Before I would see something and think it was a good deal and buy it. So I think I'm doing better.
I come to the debt boards or living frugal boards all the time now. I mostly lurk but I have learned a lot of great info. It is good to know, that I'm not the only person in the same situation. Hopefully your situation will eventually get better.
Candice
Proud Marine wife to Gary
SAHM to Trystan and Blake
Hello Danni and welcome to the board - we actually spell our names the same.
The other poster raises an excellent point - refinancing cc debt without dealing with the root cause of cc debt is a terrifying way to juggle around debts.
All my best,
Danni
I agree with the other ladies. I highly suggest cutting up all your cards and closing the accounts (maybe with the exception of your business one - but it must strictly be used for business). Sometimes you just have to force yourself to do things that are hard. I know it will be hard to change your habits, but it's not impossible. My dh is military and we have 2 kids and live on just his income, which is about 1/4th yours. Our cc debt is around $40,000. We are BARELY making it, but we are. We live paycheck to paycheck and are sometimes short, especially after getting gas and groceries. There have been so many times that I've gotten tired of going without and that's when we use our cc's. It's been a never ending cycle for the last 7 yrs. One of these days we will get out of this.
I think visiting this board and the Frugal Living board (like another poster suggested) helps in keeping our financial issue in check. Also reading about how to get out of debt is good to. For me, when I force myself to think about our debt it gives me the motivation to get out of it, however, I just need to keep that focus going constantly! lol
Good luck!
Michelle
You can take this advice for what it's worth, from someone who has also paid off all her credit cards, but I would establish an emergency fund and cancel the cards.
I think you really just need to change your lifestyle.
Hi Danni,
Welcome to our board!
Congratulations on realizing your financial state, and doing something about it!
You've worked very hard to get where you are in life, and even though it's terrifying, being without unsecured debt is O.K.
I had $24K in unsecured debt when I came here. I paid it all off, and now have racked up $4K in new debt. But it's on the way back down again, before I get too crazy.
You're like me - ours is a "Rags to riches...to rags...to riches...to rags...to riches" story, ha ha ha!
You'll be okay. I'm so glad you posted here. Keep posting, and let us know how you're feeling.
My girlfriends and I stopped meeting for dinner, and started meeting for coffee instead. I did my own hair for a while, ruined it, and now have managed to put that line item back into my spending plan.
I do other things to make myself feel better besides buy clothes: yoga, gardening, reading, crochet, exercise, log on here, flylady. It's usually 10 steps forward, 1 step back. Today I'm doing all right. Some days are better than others.
So glad to have you here!
All the best,
Lee Ann
P.S. You can borrow most of the books recommended by other ladies on this board for free through your local library. My personal favorite is Jerrold Mundis' "How to get out of debt, stay out of debt, and live prosperously". I borrowed it from the library about three times, then used a gift certificate to buy it at a bookstore.
Lee Ann
www.werenotafraid.com