The following post was written by an anonymous blogger. It is not mine:
-----------------------------------
My husband and I have a massive amount of debt. It could be worse and it has been worse. We’ve been working really hard for the past couple of years to dig our way out of the debt we owe. It will still be 3-4 years before we are debt-free, but it is comforting to know there is an end in sight.
There are several reasons why our debt piled up, but for the most part it was because I was in charge of our finances, did not make good spending choices, and kept my husband in the dark about the amount of debt I was racking up on credit cards. Finally, I realized there was no way out of it without help; I fessed up to my husband; we talked to our family about the situation; we met with a debt counselor; and we started making moves to work toward becoming debt-free.
We could have taken the easy way out and filed bankruptcy (keeping my retirement and profit-sharing), but ethically and morally believed we were responsible for paying back what we had borrowed. So, we cashed out all of our stocks, my retirement fund and my profit-sharing and paid off as much as we could (after taking a huge tax hit). Then, we started using the Dave Ramsey practice of the “snowball effect.” This means we pay off the smallest debt first and once that is paid off we roll that money into the minimum we’ve been paying on the next smallest debt and the amount being applied toward the balance begins to grow as you begin to pay off the larger debts.
Also, we made a strict budget and have forced ourselves to live within our means. This has been challenging for a number of reasons, but it has been approximately three years since we’ve used a credit card! There are a few things that frustrate us, however.
1. We make enough money that if we didn’t have the debt to pay off we’d have a very comfortable lifestyle. However, my husband is good at reminding me that we got to do a lot of wonderful things – trips, etc. – when we were younger and we just have to pay for it now. I appreciate his understanding and encouragement when I get low about my past choices.
2. We moved a few years ago and have not been able to sell our house in the city where we used to live. So, on top of paying rent for our current residence we are stuck with a mortgage payment. It was on the market for over a year. Then, we took it off the market and rented it out – which was a total disaster. Now, we’ve done some additional work on the house and it is back on the market. I’m praying so hard for a quick sale (or a very directed lightening strike). Not having that mortgage to pay will make our lives so much easier and will allow us to put even more money toward paying off our debt.
3. We keep having all these little “unexpected” expenses pop up. I know we all have to deal with these, but it just seems we have more than average at the moment – new appliances, car repairs, medical bills, deductibles. Again, once these are paid off in the next few months it will make things much easier and give us even more money to apply to the big debt.
Fortunately, we have very supportive families who are helping us both emotionally and financially (for some of the unexpected costs that we can’t cover right now). It changes the dynamics in the relationships a little bit, but they are all very encouraging of what we are doing and how diligent we are being about staying focused on the goal of living debt-free.
It’s frustrating and sometimes belittling. There are times I wish we’d taken the easy way out and declared bankruptcy or let our house go into foreclosure. But, at the same time I am proud of the way we are now living and how we have stayed true to ourselves and our beliefs. Three to four years may seem like a long time, but in the scheme of everything in life it is a drop in the bucket. We will make it and once we are there I can’t imagine the pride we will feel in accomplishing what at one time seemed impossible.
-------------------------------------------------
Feel free to leave this blogger comments here if you want to. She has been told by -R- that I am hosting her post so she'll know to come here to see what people have to say. I have no clue who wrote this post.
Here is a list of other participants if you'd like to check them out:
Not the Daddy: http://notthedaddy.blogspot.com
O is for Olson: http://oisforolson.wordpress.com
Red Red Whine: http://redredwhine.com
Rediscovering Me: http://leavingthecocoon.blogspot.com
Reflections in the Snow-covered Hills: http://snowcoveredhills.com
The Reluctant Grownup: http://gilliangaladriel.spaces.live.com/
Sauntering Soul:http://saunteringsoul.blogspot.com
Serendipity Now: http://serendipitynow.wordpress.com
Snarke: http://snarke.net
So, This Is a Treadmill: http://sothisisatreadmill.blogspot.com
Thinking Some More: http://3carnations.blogspot.com
Time for Change: http://ngradstudent.blogspot.com
Together They Come: http://togethertheycome.wordpress.com
Wondering and Pondering: http://wonderingandpondering.wordpress.com
And You Know What Else: http://andyouknow.wordpress.com
Andrea Unplugged: http://andreaunplugged.wordpress.com
Arctic-ulate: http://arctic-ulate.blogspot.com
Bright Yellow World: http://brightyellowworld.com
Bwildered: http://bbwilder.blogspot.com
Catheroominations: http://catheroo.com
Did I Say That Outloud?: http://tracyoutloud.blogspot.com
Dispatches from the Failed Mommy Club: http://failedmommy.com
Full of Snark: http://fullofsnark.com
Heidikins: http://heidikins.com
Hot Chicks Dig Smart Men: http://hotchicksdigsmartmen.com
Just Below 63: http://littlepieceoftexas2.blogspot.com
The Little Goat: http://thelittlegoat.com
13 comments:
I commend you for taking the responsible way and repaying your debt. People are quick to fall back on bankruptcy, which while easier in some ways, presents a price for all of us to pay.
Thanks for letting me host your post anonymous blogger.
I was in a similar situation about 5 years ago. My husband and I got divorced and I was alone and had quite a bit of credit card debt. I had never heard of Dave Ramsey at the time, but I did exactly what you are talking about - paying the lowest balance credit card off, then rolling that payment towards the next one, etc. I was debt free within a couple of years and haven't charged anything on a credit card if forever. All I can say is, "Way to go!" You're doing good things and you will get there. And from experience, let me say that it is the most awesome feeling on earth. I still have a lot of sleepless nights, but they are never because of money worries anymore. Good luck to you. You can do this!!!!
Being in debt is THE WORST. I really admire you for not taking the easy way out. I'm glad there's an end in sight for you.
Good for you and your husband for doing what you need to do to be self-sufficient. I've been there, too, and I can tell you - once all of that debt is gone, and your budget is again your own - there's no better feeling in the world.
Oh, this is so hard. I think the hardest part for me would have been admitting that there was a problem. I'm so glad you did and are taking all the right steps!
YOU ROCK!!!! This is so inspiring!!!
I'm in the midst of doing the same exact thing, and yes, I'm often frustrated. I resent making that card payment every month, particularly since the largest portion of my debts were made by my ex using my cards, without my knowledge. I'll be completely out of debt in just under two years, and I haven't used a credit card in over three. Sometimes I get jealous of my friends, who go on fancy vacations and regularly eat at expensive restaurants. In the end, though, I am more proud of digging myself out of this hole than of any other accomplishment in my life.
WE CAN DO IT!!!
Don't you wish someone would have taught you good finances earlier?
I think it is great you are being responsible and working hard. Dave Ramsey is one smart man.
Keep up the good work and you are right. Four years is nothing in the whole sceme of life.
Tanya - It's interesting that you asked about being taught earlier about good financial choices (this is the poster, BTW). I grew up in a fairly wealthy family and money was never an issue. I didn't get an allowance and instead was just given money as I needed it. Also, everything was paid for on credit cards. The bills got paid every month, but I never saw that end of the process. I just saw the spending and getting. So, I grew up in a comfortable financial situation, but at the same time never really learned the lessons of how to handle the money.
I think what you guys have done is absolutely terrific. I admire you so much! ~L
Sis - I am proud of you.
You KNOW how proud I am of you - sorry we didn't teach you better. -- Mom
Well done! You are working hard and taking responsibility. A rare things it seems these days. My husband and I are working hard to pay off our debt too and it can be so frustrating when you feel like you take 2 steps forward and 3 steps back. Just keep plugging away!
This is a great post. I always get a bit frustrated when I hear that people take the easy way out or refuse to pay debts they racked up on their own. Keep doing what you're doing. You mentioned your family and friends are supportive, so rely on them for strength and help if you need.
Post a Comment