I recently had a conversation with a friend that led me to believe he had finally declared bankruptcy. He had been considering it for some time. I made a comment about my summer job and how all the money would be going toward my debt, and he said he no longer had to worry about any of that. So, I am quite sure that is what happened, although I would never be so rude as to ask.
That got me thinking. I am not nearly in the type of debt that would require me to declare bankruptcy, but just how far would I be willing to go to pay off my debt. Bankruptcy is obviously a big step and I have a feeling people who have to declare probably feel some sense of failure. (I am not saying they are, but I know some things can affect people that way.) What other feelings could be associated with repaying debt. For me, hatred springs to mind.
My summer job of teaching summer school is driving me crazy! I have to be away from my newborn, I am dealing with students who do not really care to learn the material I have to teach, and I will not get to spend a dime of the money I make. It is not really that I have anything I need to spend it on besides debt. However, after all of that work I will be paying for things that I no longer remember or even have. I am essentially working to repay my past mistakes.
If nothing else, I guess this will make me think twice before I ever charge another thing. I had come to that conclusion long before starting this extra job, but now I have a very clear picture of what is in store for me each summer that my debt is with me. I don't look at it as punishment though; I look at it as an opportunity that a lot of folks don't have. However, I still don't like it.
So, I now know that I will do something I really hate to pay off my debts. What keeps me going is that each day I walk in my classroom to set up for the next day and call out the amount of money I am up to. Today it was $800! On the last day I will be able to say $2000! That will make it all worthwhile. Of course I have to wait for Uncle Sam to let me know what I actually get to pay toward my debt, but it will still be a nice chunk of change.
I understand there comes a point when people get so in over their heads that they have no choice but to declare bankruptcy. For a while, I was a little jealous of my friend for basically getting the slate wiped clean. However, I know I will be a better me for having worked so hard to repay my debt. It will give me a sense of accomplishment, and that is a good thing!!
What have you done to lower your debt? Did you part with things you really wanted to keep? Did a job you hated? Let me know!!
Showing posts with label debt repayment. Show all posts
Showing posts with label debt repayment. Show all posts
Saturday, June 7, 2008
Sunday, February 17, 2008
They're in Debt up to Their Eyeballs
I am constantly reminded of that commercial where the man talks about all the great stuff he has and finally at the end he says, "I'm in debt up to my eyeballs. Somebody help me." Or something along those lines. I have actually turned that in to a little mental technique that I use to help me in my journey of debt repayment.
Just as a quick example, I was recently told about a woman who went to a store and found a great deal on a pair of diamond earrings. She called her husband and he came back to the store with her. He told her she could spend up to $1000. I believe she spent around $800, and this was considered her Valentine's Day gift. That is more money than my husband and I spent on each other for Christmas combined!! In relaying the story to my husband, he said, "well, that is a nice gesture if you have the money I guess."
Exactly, YOU GUESS! Most of the time we think, wow, those people must be doing really well. Or, I wish I could spend that kind of money on my spouse. In other words, we beat ourselves up because we can't afford to spend like that. However, I like to think that all of these wonderful gifts were put on a credit card that most likely was not going to be paid off by the end of the month. Now, I am not big on jewelery thank goodness, so it is not a jealousy issue. It just helps me to remember that you cannot tell what someone's finances are like by what they are able to purchase. Almost anyone can put a couple thousand dollars worth of merchandise on a credit card. And, a lot of people do so with no regard to how they will eventually pay it off. I used to be one of these people. Thankfully, now I am not.
I think this idea of pretending everyone else is going in to debt works for many reasons. The first one is that in many cases it is true. Most of the people that I know have similar incomes. If I can't afford it, they probably can't either. Another reason, and maybe the most important, is that it helps me focus on what is most important right now. Not stuff, but getting out of debt. I will do anything to keep from adding to that magic number that I am trying to pay off. It also helps me realize that some people have not had "the revelation" yet. They do not realize that eventually all this stuff has to be paid for, and their future is not secure until it is all taken care of. I am learning this at a fairly young age and I see this as a great opportunity for me and my family.
Now, I would never say this out loud to someone who just purchased something I think is frivolous. It is just not my place. But, I will continue to think this way when I see people throwing money away. And, hopefully it will continue to strengthen my own repayment efforts. So, the next time you feel down because you can't "keep up with the Joneses" just pretend they are about to file bankruptcy. It helps... I swear!!
Just as a quick example, I was recently told about a woman who went to a store and found a great deal on a pair of diamond earrings. She called her husband and he came back to the store with her. He told her she could spend up to $1000. I believe she spent around $800, and this was considered her Valentine's Day gift. That is more money than my husband and I spent on each other for Christmas combined!! In relaying the story to my husband, he said, "well, that is a nice gesture if you have the money I guess."
Exactly, YOU GUESS! Most of the time we think, wow, those people must be doing really well. Or, I wish I could spend that kind of money on my spouse. In other words, we beat ourselves up because we can't afford to spend like that. However, I like to think that all of these wonderful gifts were put on a credit card that most likely was not going to be paid off by the end of the month. Now, I am not big on jewelery thank goodness, so it is not a jealousy issue. It just helps me to remember that you cannot tell what someone's finances are like by what they are able to purchase. Almost anyone can put a couple thousand dollars worth of merchandise on a credit card. And, a lot of people do so with no regard to how they will eventually pay it off. I used to be one of these people. Thankfully, now I am not.
I think this idea of pretending everyone else is going in to debt works for many reasons. The first one is that in many cases it is true. Most of the people that I know have similar incomes. If I can't afford it, they probably can't either. Another reason, and maybe the most important, is that it helps me focus on what is most important right now. Not stuff, but getting out of debt. I will do anything to keep from adding to that magic number that I am trying to pay off. It also helps me realize that some people have not had "the revelation" yet. They do not realize that eventually all this stuff has to be paid for, and their future is not secure until it is all taken care of. I am learning this at a fairly young age and I see this as a great opportunity for me and my family.
Now, I would never say this out loud to someone who just purchased something I think is frivolous. It is just not my place. But, I will continue to think this way when I see people throwing money away. And, hopefully it will continue to strengthen my own repayment efforts. So, the next time you feel down because you can't "keep up with the Joneses" just pretend they are about to file bankruptcy. It helps... I swear!!
Monday, October 29, 2007
Look into your crystal ball!
I probably shouldn't even acknowledge it, but I am sorry I haven't been posting... at all! I am sure I have lost a ton of readers. Hopefully my female readers can sympathize somewhat. Starting a new job AND finding out you are having a baby is a BIG change. Anyhow. I am not promising anything but this is an article that has been simmering for a long time so here goes!
There are not many times that you can actually see into the future. However, sometimes with finances you can. So what can you do for motivation, after the month's bills are paid and you are cashless again trying to get your debt paid off? Pull out your old crystal ball. Or just some credit card statements and a calendar. I did this some months back and figured I could be nearly debt free in FIVE years. That sounds crappy but considering I haven't really been paying enough attention to my finances for the past ten years, it really isn't so bad.
I listed all of my debts, how much I owed, what I was paying monthly and for those debts that would end after a certain amount of time I wrote down that date. At first I tried to figure out the plan with a debt snowball, but I actually found that in paying off some of my smaller debts, my larger debts (ex. car) would be paid off around the same time anyway. That may not be the case now, because I won't be able to put as much money toward my debt with the added expense of daycare, but it gave me a light at the end of the tunnel.
Also, when I first did my snowball end date I had not figured my husband's debt into the equation. With his debt paid off and just some of mine we may actually be able to afford a new house!!! That would be awesome.
The point here though is that sometimes you need a little pick me up. If you have a lot of debt look at your smallest debt first. Paying as much as you can, find out how long it will be until it is paid off. Once you pay it off maybe you could even treat yourself to a special purchase with ONE month's worth of that money. After that, though, put it toward you next debt.
I think it is important to look forward to and celebrate these little accomplishments. Personally, I fall into a slump after months of paying on a bill only to see the amount go down slightly. By looking ahead you have something to look forward to. (Even if it is five years, or more, down the line!)
There are not many times that you can actually see into the future. However, sometimes with finances you can. So what can you do for motivation, after the month's bills are paid and you are cashless again trying to get your debt paid off? Pull out your old crystal ball. Or just some credit card statements and a calendar. I did this some months back and figured I could be nearly debt free in FIVE years. That sounds crappy but considering I haven't really been paying enough attention to my finances for the past ten years, it really isn't so bad.
I listed all of my debts, how much I owed, what I was paying monthly and for those debts that would end after a certain amount of time I wrote down that date. At first I tried to figure out the plan with a debt snowball, but I actually found that in paying off some of my smaller debts, my larger debts (ex. car) would be paid off around the same time anyway. That may not be the case now, because I won't be able to put as much money toward my debt with the added expense of daycare, but it gave me a light at the end of the tunnel.
Also, when I first did my snowball end date I had not figured my husband's debt into the equation. With his debt paid off and just some of mine we may actually be able to afford a new house!!! That would be awesome.
The point here though is that sometimes you need a little pick me up. If you have a lot of debt look at your smallest debt first. Paying as much as you can, find out how long it will be until it is paid off. Once you pay it off maybe you could even treat yourself to a special purchase with ONE month's worth of that money. After that, though, put it toward you next debt.
I think it is important to look forward to and celebrate these little accomplishments. Personally, I fall into a slump after months of paying on a bill only to see the amount go down slightly. By looking ahead you have something to look forward to. (Even if it is five years, or more, down the line!)
Monday, July 16, 2007
Is a Free Degree Truly Free?
I must say I have been very lucky when it comes to financing for college. I was awarded $20,000 in grants when I first started going to school. I got married while still atteneding and had to take out loans since my income shot up (well, not really MY income but they don't care). My loans totalled a little over $18,000. Now I have the chance to go back and get my Master's for free. That's right, I said FREE. As a teacher/librarian this is the ONLY way for me to increase my income. Teachers have a fixed pay scale in my district. You get a raise for each year of experience and what type of certificate you hold (I have A, Master's would be considered AA) At first glance it seems like I should go for it right now and get it over with. However I am sure there are expenses I am not thinking about that will make it more expensive than I anticipate.
First, there will be the extra gas. The closest campus to where I live is about a half hour drive and that is using the interstate. It is also possible that I might have to take classes as far away as the main campus and hour and a half away.
Next, there is food. I would have take night classes because I have to keep my full time job. This seems like an easy fix, make something and take it but with two kids, work, making food for lunch, I seriously doubt I would have time to do this on a regular basis. And, I can't just stop back by the house on the way to school because that is already a really long drive for me.
I guess what I have to find out is the lowest number of hours I can take and still have it paid for by the Institute of Higher Learning.
So, I am trying to decide if going to school is worth possible having to put my debt repayment plan on hold. Right now I really don't want to do that. But,there is no real way to know how much it will cost me until I am actually there an doing it. I guess this just proves the old saying about nothing truly being free.
I also have to consider the benefits. My income will increase but not until I am completely finished. WHen I was an assistant I got to bring in my transcript after every semester and I got a raise. This doesn't work once you have your bachelor's. So, I guess right now I am just going to wait and see. If you have any more tips on how to minimize expenses while going back to school I would love to hear them!
First, there will be the extra gas. The closest campus to where I live is about a half hour drive and that is using the interstate. It is also possible that I might have to take classes as far away as the main campus and hour and a half away.
Next, there is food. I would have take night classes because I have to keep my full time job. This seems like an easy fix, make something and take it but with two kids, work, making food for lunch, I seriously doubt I would have time to do this on a regular basis. And, I can't just stop back by the house on the way to school because that is already a really long drive for me.
I guess what I have to find out is the lowest number of hours I can take and still have it paid for by the Institute of Higher Learning.
So, I am trying to decide if going to school is worth possible having to put my debt repayment plan on hold. Right now I really don't want to do that. But,there is no real way to know how much it will cost me until I am actually there an doing it. I guess this just proves the old saying about nothing truly being free.
I also have to consider the benefits. My income will increase but not until I am completely finished. WHen I was an assistant I got to bring in my transcript after every semester and I got a raise. This doesn't work once you have your bachelor's. So, I guess right now I am just going to wait and see. If you have any more tips on how to minimize expenses while going back to school I would love to hear them!
Sunday, July 15, 2007
We Only Do it Once a Month!! :(
I am the kind of person who likes to make things happen quickly. I have read a lot of articles recently about people needing more discipline or will power to get rid of their debt. And, I am not going to say this is not a key point. But, for someone like me, one of the biggest issues I have is that I am only able to do anything with my "bills" once a month. I am paid monthly obviously, so on the last day of each month (or sometimes a few days into the new month...eek) I sit down and figure everything up, see how much extra I can afford to pay on my debt and then I wait. I wait for another 30 days to do it over again. Don't get me wrong. I am glad that I CAN do this once a month and that my situation is not so bad that I have creditors ringing my phone off the hook. But, it can be so frustrating to see things happen so slowly.
The problem for me is not that it is taking so long to repay debt, I mean hey I did all the shopping! What I hate is that I can't do more. Like something every couple of weeks or so. And, honestly I am trying to do that by finding new ways to supplement my income.
So what is the problem? For me it is that the further I get away from my last payday the less I think about paying the debt and the more I start to think of all those things I want, want, want. And, to be honest, I get bored. That is a major reason for starting this blog. Even if I can't DO anything toward my debt at least I can get my frustrations out about it. I also find it comforting to read others' stories and hear the reassurances that eventually you do get it paid off and can start saving and investing more vigorously.
So, how do you deal with the fact that debt takes so long to repay, or that it is so long between paychecks? (For some of you it may not be) I would love to hear your ideas!!
*** Notice off to the side I have started a poll. Please vote! You don't have to enter any info to do so. I am hoping to use the information for an article somewhere down the road. Thanks!!
The problem for me is not that it is taking so long to repay debt, I mean hey I did all the shopping! What I hate is that I can't do more. Like something every couple of weeks or so. And, honestly I am trying to do that by finding new ways to supplement my income.
So what is the problem? For me it is that the further I get away from my last payday the less I think about paying the debt and the more I start to think of all those things I want, want, want. And, to be honest, I get bored. That is a major reason for starting this blog. Even if I can't DO anything toward my debt at least I can get my frustrations out about it. I also find it comforting to read others' stories and hear the reassurances that eventually you do get it paid off and can start saving and investing more vigorously.
So, how do you deal with the fact that debt takes so long to repay, or that it is so long between paychecks? (For some of you it may not be) I would love to hear your ideas!!
*** Notice off to the side I have started a poll. Please vote! You don't have to enter any info to do so. I am hoping to use the information for an article somewhere down the road. Thanks!!
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