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Here is where I begin

January 9th, 2008 at 09:05 pm

I actually began my quest to be debt free in June 2007 when I realized (too late) that we had $40,000 in credit card debt and $34,000 in a home equity line of credit and about $500 in savings Frown

We got to this foul financial state with very good intentions. Somehow, I had head my head in the sand and figured that there would always be a tomorrow to pay the debt off.

Today, we have reduced our debt to about $62,000.00, paid cash for most things and increased our savings (emergency fund) to $1500.00. I am using Dave Ramsey's snowball approach and paying off the smallest balances first. The good news is that I have not touched my 401(k).

I think there are a couple of phases that I have experienced to date. Let me describe them:

1. Whom am I kidding? Fooling myself that the debt wasn't that bad. There will always be a tomorrow to pay if off.

2. Acknowledgement & Shock: When I finally got my head out of the sand and figured out that I was only paying minimum balances and not reducing my overall debt, I was shocked. I swear, I didn't sleep well for weeks.

3. Regret: I regret my financial decisions. How could I accept myself for letting our finances go so far astray? I was very embarrased about my financial state. What would others think? I look like I have everything put together and in proper order! I wonder how many of us out there feel this way?

4. Hope: Besides having some really pragmatic advice about debt, Dave Ramsey's books offer lots of hope. If you lose hope, you got nothing! Have faith, get to know God more.

5. Acceptance: Okay so I made mistakes. Some days it is still hard to believe we are knee deep in debt.

6. 2 steps forward, 1 step back: My typical way of dealing with a problem is to manage it head on and resolve it QUICKLY. Well, this quest of mine will require lots of patience and persistance. Some days, I feel like I've made progress in paying down some debts just to find that my husband charged something. Ugh

Stay tuned . . .

Posted in Uncategorized | 7 Comments »

7 Responses to “Here is where I begin”

  1. JanH Says:
    January 9th, 2008 at 09:32 pm 1199914326
    1199914326

    Welcome! Sounds like you've done a lot already. I like your list of phases! I am on step 3 myself. Looking forward to reading more from you!

  2. Ima saver Says:
    January 9th, 2008 at 09:49 pm 1199915395
    1199915395

    Welcome, glad you have joined us!

  3. gruntina Says:
    January 9th, 2008 at 10:24 pm 1199917442
    1199917442

    You explained me exactly!!!! (Even these phrases described my embarrasement of being married to an abuser!)I started with over 65k in consumer debts due to the divorce. I was in and out of a black hole constantly. I make my final payment to my debts this month after 4-5 years of struggles. I should be celebrating this but I am not feeling like it because that debt was tied to a very horrible past that taken several years of my life. I am now just happy to move on with my life. It feels truly great but I am onto a new financial project as I found my prince charming and remarried. He had a crazy mortgage and we are working on that and our finance together. At least he is eager and on board with me. I am grateful for this board as they taught me everything I know about finance and also gave genuine support for me to keep on plugging away. Thank you all!!!

    You are doing great so far! I know a lot of people never get that "wake-up" call and try to roll up their sleeves and put effort in resolving their financial woes.

  4. ceejay74 Says:
    January 9th, 2008 at 10:34 pm 1199918051
    1199918051

    I am so in agreement with those steps. I'm mostly on Steps 4, 5 and 6 but that doesn't mean I don't regress to Step 3 sometimes and beat myself up for having been so stupid. At least I never go back to 1 or 2: My head will never be in the sand again, and I'll never have a nasty shock about where I'm going debtwise again, because I am on top of it every single day.

    Welcome to the board!

  5. luxliving Says:
    January 9th, 2008 at 11:02 pm 1199919779
    1199919779

    hi there! Great list.

  6. shiela Says:
    January 9th, 2008 at 11:21 pm 1199920895
    1199920895

    Hi, good to see that you got a plan to be debt free.
    Welcome.

  7. Ralph Says:
    January 10th, 2008 at 02:30 am 1199932258
    1199932258

    Hey, glad you're here. I'm in the same boat, except that I have kids starting college as well! Better late than never, but we're in for a long battle.

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