I’m not a fan of debt. I know you’re probably thinking well who is Carey? The truth is most of the people in the U.S. are….if you want to get technical about it, right? I mean most of us (and them) are in debt, right? So they are fans of debt.
I am not a fan of debt even a lil bit but I’m seriously pissed off at myself BIG TIME and I’ll tell ya why. If you hit the rewind button on my life you can be taken back to a day when I had bad credit and a shitload of debt. Financially, let’s just say times were sucky and stressful. Ever been there? Now if you fast forward a lil bit passed this time frame I got my proverbial shit together and I was 100% debt-free (except for the mortgage on the house I lived in) and I had a 740 credit score. I was super proud of myself because I worked hard to get out of debt and to build my credit. Problem arose when I was an idiot about my money at the time…here I am, completely debt-free except for a $535 mo. mortgage payment and I was making at least $50k a year but ummmm I had nothing to show for that? Instead of being smart with the money I made I was an idiot and nowwww fast forward to my life now.
I met a wonderful, beautiful, smart woman in Kathy and after 2 yrs. of dating we decide to purchase a house together. It was a bank REO which needed a complete makeover and although we got into our $240k-$250k home with $0 money down well neither one of us had the money that was needed to fix up the entire house (plus moving costs, etc.) Sooooo here comes the friggin debt again for me because I was a dumbass with my money the entire time I was debt-free. Grrrrrr!
Nowwww…..wanna know how much debt I’m in? $34k!!!! Mhm…..yep….and I can’t even tell you want most of it is for, actually I can’t tell you what a lot of it is from but not all of it. I mean included in that $34k is a few atm’s and even tho I’m including them in the overall figure they are actually paying themselves off, if that makes any sense. $34k of fixing up a house, vet bills, trips, etc.
And ya wanna know something? I got no one to blame but MYSELF. Yep, I take full responsibility I was an idiot, I’ve been an idiot and I am still an idiot….but it’s time to put on my Smart Girl hat and quit with the idiot bullshit because I know better.
My goal is to get out of that debt by this time next year. So in order to do that I’m going to have to pay $947/mo on my credit card and then $1886/mo on 2 lines of credit (one business loc that still has real estate shit on it and one home loc that has the biggest chunk of the 34k on it.) I say $947/mo on my credit card because I just got a 0% balance transfer rate on a card until 4/2010. So I want to pay it off by then.
Once that comes then I can add that $947/mo credit card payment to the lines of credit payments. This seems like a daunting task on the surface but if you sit down and think about it logically well that’s just 1 wholesale deal a month!! Right? I just have to work my ass off to ensure that I get one deal a month. Btw, these numbers don’t include my normal living expenses in regards to my home, insurance, food, etc. That’s all extra!
I think I can do it…and I’m going to take action to ensure that I do it…and even if it takes me 1 1/2 yrs. instead of 1, I’ll still be tickled pink. DEBT is my driving motivation right now…..I want out.
Kathy doesn’t understand this burning desire of mine because she’s never been out of debt her entire adult life…..I told her that once she gets there, she’ll never want to go back. It’s a beautiful thing that I miss. Plus, I like to think that I’m a hell of a lot smarter and wiser now, so once I’m out of debt my money will definitely be used in ways that will ensure I don’t ever have to go back there.
I don’t know if you guys (and gals) ever read Secrets of the Millionaire Mind by T. Harv Eker but I do the jar system that he talks about (although I use different bank accounts instead of actual jars. We have actual jars tho for Kathy’s 9 yr. old son and 17 yr. old son tho.)
I’m feeling good about all of this and I wanted to share my story with everyone so you know that yeah, I’ve done deals and I’ve made money in the past in real estate and used the funds stupidly but now I’m going forward to use the funds for a real purpose now and that I am human and I do FUCK UP! (and it’s ok if you do too, just please, please make sure you learn from it.)
Oh and for the record the $34k figure does NOT include my personal residence mortgage or rental property mortgage. I’m not too worried about them at this time, just want to get rid of that big $34k figure and then I’ll tackle the home mortgage (the rental one I’ll let the tenant pay off for me.)
If you guys want to share your motivation for paying off debt or anything like that, please feel free to. I think it’s beneficial to write it down and especially to tell others about it, kinda makes ya more likely to hold yourself accountable, ya know?