My Debt Story

It's sad and hard to believe that in October of 2005, I had no debt except for my mortgage. I had paid off a credit card and a 6 month computer loan and was debt-free, except for mortgage. The missing component to my finances was having a plan, knowing what to work for. Other than saving $300/month for DD2 upcoming college expenses, I didn't have a savings plan. I thought I was financially fit and responsible. The next 20 months would prove me wrong. By June of 2007, I was $13,700 in debt and still thinking I was financially fit and responsible!

My journey into debt included the transmission going out in my Jeep, getting a store credit card to get 10% off a gift (really stupid!), getting two 12 month-interest free cards, one to pay for professional board certification, and the other to consolidate two big purchases. Another factor was that my income decreased, but my spending stayed the same, so that every month I went farther and farther into debt. I finally woke up in June of 2007, when I read Dave Ramsey's Total Money Makeover. I listed all my debts and was shocked at how much I owed. For some reason, I had been telling myself that I owed $7000. Talk about denial!

The first two months of my TMMO were difficult, because I had to learn to not use my credit cards and to live within my means. The debt totals did not come down at all for several months, which was very discouraging. I found that several experiences helped to keep my spirits up. At first, I kept reading TMMO and working on my debt snowball. Next, I found Dave's website and discovered personal finance blogs. I was encouraged and inspired by the journeys they shared with their readers. They also shared tips and tools (like budget spreadsheets) that kept me inspired to keep plugging away. My debt was coming down, albeit slowly.

Starting this blog in August gave me another boost of encouragement and accountability. Writing about my goals and updating my progress (or lack of it) helps me to stay on track. Plus, I am learning a little more about blogging and personal finance. It's a win-win for me! I would encourage anyone who is on a journey to become debt-free to consider a personal finance blog as one way to learn and stay accountable.
Right now, I am really enjoying my journey into financial wellness. When I finally get debt-free this time, I want to have a plan to stay financially healthy and the knowledge to implement the plan.
Can anyone relate to getting out of debt and then getting back in due to lack of a plan? We will not repeat the same mistakes again!