Where were you in your debt journey...

iVillage Member
Registered: 09-20-2004
Where were you in your debt journey...
7
Tue, 03-14-2006 - 5:53pm

one year ago?

I have been really discourages lately, because we are moving at the end of this month and don't have jobs lined up yet, and we have been deep in debt forever, and it seems it will always be that way.

BUT, while I was cleaning up (things seem to get scattered about everywhere), i found the sheet of paper I had written my March 2005 totals on...

We owe $5300 less to ccs, $1000 less to student loans, and $4800 less on our cars...

Anyhow, these aren't big improvements, but there was a time when i felt good if we didn't add to the debt pile.

So I'm just wondering where you are today, compared to a year ago? Has life thrown you curves? It definitely has for me, but I am just plugging along....

heather

Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Tue, 03-14-2006 - 7:29pm

Hello,

Last year, we had $12,000 more in mortgage and lots more in credit card debt. We also were living beyond our means slightly, which meant the credit card debt started going up. Soon after my DH received the announcement of his layoff, I started really buckling down on the finances.

Sincerely,
Lindsey Schocke

Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Wed, 03-15-2006 - 10:14am

Heather - That is great though that you were able to see that even though it feels like UGH!!!

iVillage Member
Registered: 06-23-2005
Wed, 03-15-2006 - 12:11pm

Heather- I think you've made great progress this last year. Not adding more to the debt is a huge success, and actually seeing all of the big numbers go down is great too.

For us, the biggest success is the way we are looking at the debt and the future. We've always "gotten by" and just paid the bills as they came in. We had the attitude that everybody had debt and eventually it would disappear. Yea right!! Last summer it was like we had an "awakening" of some sort. We became determined to change something and start the ball rolling a little faster. We refinanced in order to change our cash flow and then I found this site, Dave Ramsey & Mary Hunt. Man, what a difference a little reading has made!! All 3 have made huge impacts on the way we are looking at every dollar made & spent. Our new way of budgeting is SOOOO much better and I can actually sleep at night knowing that I have planned it all out and everything's under control. I think for so long we thought we had it under control, but in reality we were only a few steps away from THE EDGE. I'm at a much more comfortable place now and know that by this time next year, it'll be even better.

Great post BTW. Anxious to see all the responses :).

iVillage Member
Registered: 01-31-2006
Wed, 03-15-2006 - 12:15pm
Hi, I think that's a great big dent you made in your debt since last year. Good for you! As for us, we had approx. 3,000 less in cc and 2,000 more in car loan. So, overall we are a little over. Not to justify the increase in debt, but we bought some furniture to replace the old stuff. So, at least we have something to show for this increase where as before we would just live off credit cards. Anyhow, my attitude towards debt has changed completely, I can no longer justify using my credit cards for ANYTHING (only if this is the only way for us to survive, but I will try other things first). I am glad I have this new outlook on debt, I just now realize that I don't want to live like this for the rest of my life. I hope things will work out for you guys. I always enjoy reading your posts, they are a great motivation for me to deal with my situation.
iVillage Member
Registered: 05-09-2002
Wed, 03-15-2006 - 2:37pm

Great question!

Lets see...last year at this time (and the year before that, and the years before that lol):

I owed 3 doctors offices and one cell bill that was 2 years past due and in collections. I saw no light at the end of the tunnel. I was late on everything and I would not answer the phone or open the mail. My checking account was often in the negative because I had no money for food and gas. I usually racked up two NSF fees a month. I stressed over every penny spent. And I made $20,000 less per year. I would avoid dinners or lunches with friends because I could not afford it. I was late on everything always.

Now:

I moved to take a better paying job and also decided I needed a roommate to offset expenses. I have all three doctors offices paid off and the cell paid off as well. I paid off one credit card and am under $300 on three other loans/cards that used to all be over $2000. I owe $3600 less on my car and $2000 less on other bills. I joined CCCA and all my interest rates are super low now. I do not have a credit card and refuse to use them again. If its not on the debit card or in cash, its not going to happen. I have started a savings, a 401k and can afford dinners out with friends. I still have A LONG WAY TO GO. I still owe ALOT OF MONEY. I still need to learn healthy spending habits. I never had money to budget before and now I am still not in the safety zone yet. But I am doing so much better.

iVillage Member
Registered: 07-06-2003
Wed, 03-15-2006 - 3:18pm

You know, a year ago I was actually debt free except for a car payment!

Fast forward to a year later, I have now over $11k of non-mortgage debt but I also own my own condo and my car is paid off. I also have a decent E-fund for the first time in years.
I would only have owed $5500 of the debt but I agreed to take my STBX's half of it in order to not pay him any equity when he sold his share of the ownership to me...in the long run it was a sound financial decision and I benefitted big time.

My goal is to pay off the $11K in three years or less...stressing the less part but I have had to make serious adjustments to living with only my income and paying a mortgage, bills, credit cards and still do it all with a smile ;)
I know I can acheive my goal and I have made the sacrifices that will help me the furthest along the way.

I have snowflaked my way to being debt free once before and some members of the board remember the cocktail party we had in celebration, I know I will get to have another party again :) I intend to never have cc debt again - it really steals time, energy and future wealth from us all.

Kassandra

Kassandra

"It is said that life has its peaks and valleys.  The challenge is to accept them equally and experience them

iVillage Member
Registered: 08-23-2005
Wed, 03-15-2006 - 3:29pm

Actually, last year we were much better off!

lvhunnie2005