So, this is where we're starting.
$13,000 worth of consumer debt.
That's what we have.
That's a lot of money.
That's way more than either of us had realized.
We don't buy expensive stuff. We don't wear name brands. We shop at thrift stores for clothes and most of my books. We don't drink much, or have expensive hobbies. We don't travel.
So where did it come from?
-We drive a crappy car that needs repairing all the time, and we've never had the common sense to sit down and start a car fund.
-We've been caught unaware with some house stuff. Like last month when it rained in the kitchen. Again, we should have had an emergency fund.
-Some of it, shamefully, is still from our cat's surgery. Said cat died five years ago.
-I was unemployed while I was in school, and C was unemployed for the last nine months.
-Some of it might have, kind of, sort have, bought me a diamond engagement ring. Maybe.
We've got a 2K emergency fund now. I'm going to the bank tomorrow to "pay off" our credit cards with our line of credit (6.25% vs 18.5%)
Deep breath. Here goes.
Accountability
July 25th, 2009 at 07:06 am
July 25th, 2009 at 07:58 am 1248508729
July 25th, 2009 at 12:02 pm 1248523330
July 25th, 2009 at 01:40 pm 1248529235
July 25th, 2009 at 03:10 pm 1248534625
July 25th, 2009 at 04:27 pm 1248539273
To answer some questions:
Whitestripe: We discussed it and the minimum payment wouldn't be much more than we had on the credit cards. In turn, we'll be paying roughly a third the interest. Sounds like a plan, but we'll make sure we are careful.
Joan.of.the.Arch: Yes, we're both working now. My fiance actually just found a job. It's retail, which he wasn't thrilled about, but he's just happy to be working again. We're going to be applying most of his earnings to paying down the debt.
And to gamecock43 and Ima saver: thanks!!
July 25th, 2009 at 04:31 pm 1248539491
Keep the focus and pay it off as quick as you can. It helps if you don't add any more debt to the mix, too!
July 25th, 2009 at 06:57 pm 1248548245
July 25th, 2009 at 10:14 pm 1248560071
July 26th, 2009 at 02:50 am 1248576628
July 29th, 2009 at 01:39 pm 1248874755
Use a balance sheet with your checkbook ritual. Write down the coffees, gas receipts, and $2-$3 things and add them up. That's where it comes from when you don't look for it.
July 30th, 2009 at 01:57 am 1248919076
To make it easier I've switched back to an old wallet that holds a transaction register and pen. While I'm still not great about writing expenses down at the very moment they occur, I at least make sure I put the receipts into the register so I can enter them that night.
You're absolutely right, it's the little things that sneak up on you.
August 7th, 2009 at 02:42 pm 1249656174