Submitted by Guest Blogger : I’m not a big spender really. At least I didn’t think I was. My parents raised me to “respect” the dollar and the things they bought me, and I understood that money does not grow on trees. Yet here I am, 10 years later, a university graduate and working professional that is neck high in debt.
How did I get here? What happened?
Here’s what happened. Step. By. Step. It all started with my first credit card I received from the welcome reception on day one of university. The person who offered me the card was very friendly and I got a free T-shirt, so I thought, “why not?” I have self control. I’m here to learn, not to spend. So I proudly took the card, bragged to my friends about my new found credit and persuaded my parents everything would be fine. It was all right for a month or two. Then I needed more books for the classes I was taking. History brings with it many heavy, hard-covered books, and they’re not cheap! The week I needed to buy these new books also, as fate would have it, happened to coincide with a big party that weekend that my roommate and I HAD to be at. Well, that called for a new haircut, new shoes and a new outfit. So began my journey of making minimum payments. I swiftly put my new books on my shiny new credit card so I would have money in my pocket to use for the party. I felt proud of myself for being such a grown up using a credit card for purchases, but at the same time nervous and a little ashamed. I could hear my mom’s voice in my head, “why are you spending money you don’t have! Didn’t I teach you anything?” Yes mom, I know. But it’s just this once!
Flash forward 10 years, and I’m still saying, “Yes mom, I know”, as I hand over one of my 3 credit cards. Yes, my pile of shiny credit cards has grown! Over the years, I’ve graduated, rented an apartment, moved a few times, purchased mountains of “work” clothes and shoes, got married, became a mom and bought a lovely home. Life has been good to me and I’ve become very successful. I have a great job that earns me a healthy income. However, if I add up what I owe in mortgage, car insurance, car payments, property taxes, and other “living” costs, I’m waaaay over my head. We’re getting by with making the minimum payments on our bills, which is all the creditors ask for. Yes, I understand it will take me 50 years to pay off the debt and most of it will be interest. Big picture though: If I lose my job, we may be in trouble. If my husband or I get sick and have to take off work, we may be in trouble. With all the living and buying we’ve done, because hey we deserve it, we haven’t contributed to our retirement as much as we should. Does anyone really? In any case, we have some serious debt.
How am I going to pay all this debt off? Good question. Yes, I play the lottery every week but I’m not holding my breath. I know my options though because I sought advice from my bank and from debt relief firms. What are my options?
- Bankruptcy
- Formal proposal
- Continue paying the minimum payments forever
- Debt relief through negotiation with my creditors to come up with a repayment plan
What did I end up doing? Stay tuned….I’ll let you know in my next post! To think about it, I’m not unlike most of my friends. We’re all in the same boat….and it all started with a free T-shirt.
How do you cope with debt? Please share your story in our comments! .
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