Saturday, January 30, 2010
Why I don't believe in bankruptcy
Although this might be an unpopular opinion, I think that most of the time, bankruptcy is not an option. Let me explain why.
I've declared bk. In 2001, when I was 26. I think I was $22K in debt and was so stressed and disheartened by the payments that I thought I would never dig out. Fast forward to a little over a year ago--September 2008. I was back to $55K in debt and feeling much the same as I did in 2001. I was barely making my minimum payments and it felt like I'd never get out. So like I often do when I feel like I don't know enough to handle a situation properly, I started reading.
I read Jerold Mundis' How to Get Out of Debt. I reread Suze Orman and started watching her show every Saturday (or Tivoing it). I read Dave Ramsey's Total Money Makeover book.
And since then I've paid off 22% of my debt. I'm down to $41K and will be completely free of consumer debt (cc's and loans) by the middle of 2012.
(I'd be further along but I continued using my cards for the first 8 months--doh!)
First step to success: cutting up your cards. This is the one that basically changed my ways. Well, I actually froze them in a bag of peas in the freezer, but same thing--I'm not defrosting them for anything.
Second for people who feel like minimums are killing you: call your credit card companies to explain your hardship and ask them for help. They may laugh at you. But they also might offer help and actually bring you some relief.
If you have debt, keep in mind that I don't know how you got here. I got here by using the ostrich method of managing my finances--head permanently buried in the sand while I handed over my credit card to pay for everything from new shoes to gasoline.
But regardless of your path: whether it was using credit to spend more money than you made or something awful like medical expenses, you still spent money that you're responsible for. And believe me, when I say I mean that with love. Because I know how you feel. I have felt under the crushing weight of debt most of my life. But there is a way out and there are people who can help you get started and stay motivated.
For me, bankruptcy wasn't a relief. It was in the short-term, but because I got into debt by overspending, I returned to my habits after the dust cleared. It wasn't a long-term fix.
I've declared bk. In 2001, when I was 26. I think I was $22K in debt and was so stressed and disheartened by the payments that I thought I would never dig out. Fast forward to a little over a year ago--September 2008. I was back to $55K in debt and feeling much the same as I did in 2001. I was barely making my minimum payments and it felt like I'd never get out. So like I often do when I feel like I don't know enough to handle a situation properly, I started reading.
I read Jerold Mundis' How to Get Out of Debt. I reread Suze Orman and started watching her show every Saturday (or Tivoing it). I read Dave Ramsey's Total Money Makeover book.
And since then I've paid off 22% of my debt. I'm down to $41K and will be completely free of consumer debt (cc's and loans) by the middle of 2012.
(I'd be further along but I continued using my cards for the first 8 months--doh!)
Second for people who feel like minimums are killing you: call your credit card companies to explain your hardship and ask them for help. They may laugh at you. But they also might offer help and actually bring you some relief.
If you have debt, keep in mind that I don't know how you got here. I got here by using the ostrich method of managing my finances--head permanently buried in the sand while I handed over my credit card to pay for everything from new shoes to gasoline.
But regardless of your path: whether it was using credit to spend more money than you made or something awful like medical expenses, you still spent money that you're responsible for. And believe me, when I say I mean that with love. Because I know how you feel. I have felt under the crushing weight of debt most of my life. But there is a way out and there are people who can help you get started and stay motivated.
For me, bankruptcy wasn't a relief. It was in the short-term, but because I got into debt by overspending, I returned to my habits after the dust cleared. It wasn't a long-term fix.
Saturday, January 23, 2010
Found money...
Now, it's red and I know that's in demand so I tried to sell it. And DID--to the tune of $200. Unbelievable. I also have a bunch of eBay postings that should bring me somewhere between $150-200.
Not bad. And here I thought I had nothing to sell!
I'm so excited! Now my plan for the money isn't sexy. I'm finishing up the refunding of my baby emergency fund (BEF) and stashing the rest of the money into Duncan's vet care fund (the poor thing will likely need more teeth removed in a few months). But that's okay. It turns out that I'm happier funding my everyday life with cash than I am doing fancy things.
Friday, January 22, 2010
Gift card mistakes
At the end of December, I won a $25 gift card for T.J. Maxx in a Free from Broke contest. Today, I decided I wanted to spend it. It's been raining here in California for an entire week, which may not sound like much to those of you who live pretty much anywhere else (especially you, Seattle). But for us, this has been pretty darn miserable. Add to that an inexplicably bizarre, uncomfortable, and tension-filled week at work, and I was in need of a pick-me-up.Now, I had a few ideas in mind. And none of it was sexy. A new grater (I currently grate cheese with my handleless grater by using with my chest as support. No, there are no photos.). A tightly-sealed container for oatmeal, which I plan to start buying in bulk. Some sort of divider stand (I ended up with a napkin holder) to hold up my cutting boards after cleaning them.
But T.J. Maxx had none of these items today. So I walked next door to Marshall's, because for some twisted reason, I had it in my mind that the gift card would work both places (I know they aren't owned by the same company, but I convinced myself it must be a multi-use card. I have no idea why.)
Marshalls had a perfect storage container. And a napkin stand. And a bamboo cutting board, which I don't need but have been coveting for some time. At the register, the woman said I couldn't use my gift card (duh), but I made the purchase anyway.
Now, I think I may not need these things at all. See, I have all these empty coffee cans from Trader Joes. So I could wash one of them out and use that to store my oatmeal. And after I wash my cutting boards, I can wipe the edges off and store them in the nook above the sink like I often do.It may not sound like much, but this is a big day. I bought things that are unnecessary. And I realized it in time to return them. Before you know it, I'll be able to think more clearly in the moment and I won't be buying mistakes any more. Now, what to do with that T.J. Maxx card.
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