Two Years ago

In late June, 2007, I read Dave Ramsey's Total Money Makeover. Before reading this book, I really thought that I was in pretty good shape financially because I was able to make my monthly payments. I had 2 zero interest credit cards that I had used for big purchases, one CC with a $1000 balance that I was unsuccessfully trying to pay down, and one card that I paid in full each month. I also had a $3000 car loan.


What I didn't realize was that I was getting farther and farther in debt each month. I was spending more than I brought in. I was pretty upset and ashamed that I hadn't seen what was happening.When I calmed down, I started on Dave's Babysteps. For the first few months, I got even further in debt because I wasn't used to living on that month's income.

My journey has been pretty long, but I can see light at the end. I think that in 4 months, I will be finished with Babystep 2. Lessons I'm learning along the way--tracking my spending is important for me because I tend to be unrealistic in my estimates, saving for unexpected expenses and irregular expenses decreases stress, and accountability really helps me stay on track.

I am enjoying this journey and I have made progress in reducing my debt. Hmm...maybe the journey is more important than the final outcome. Interesting....

Decision

I decided to pay down my last credit card instead of saving for a car for my son. Thank you to everybody that gave input to my decision. Paying down the credit card is the responsible thing to do for my financial well-being and I think it is also the best decision for my son. He is choosing not to get a summer job because he is focusing on training for cross-country season. One consequence of not having a job is the inconvenience of sharing a car with your mother. I think that this will be a valuable life lesson.
$2600 left to pay on the credit card. My original goal was July 1, but that is not going to happen--too many Murphy visits--plumbing, car repairs. My revised goal is to finish by October 15.

Capital One--Canceled, but not gone

I just called and cancelled my Cap 1 card because they were changing the terms of agreement.
My current interest rate is 5%, and it was increasing to 13%. If I opted out of the new terms, my card would be cancelled., but my current rate will apply while I pay off my card. This sounds almost too good to be true--that I can keep the 5% rate. I'm holding on the the written notice, in case my rate does go up.
My new goal is to pay off the card by Oct. 15. This sure is taking longer than I thought!

Indecision..

I haven't posted in a while because I haven't been able to decide whether to keep paying down my credit card or save for a replacement car for my son, who wrecked his car in the spring. I still haven't completely decided, but I'm leaning toward not replacing the car even though sharing a car will be very inconvenient when school starts. Paying down the credit card makes more sense financially.

Rain is coming down and expenses are going up!

I'm still tracking my actual expenses with YNAB and they have been increasing. Last month, I spent 11% over budget. I overspent in just about every category except eating out. I went over in the basics like groceries and gasoline, as well as gifts, miscellaneous and house projects. With the increase in my spending came a corresponding decrease in debt repayment. It feels a little like my spending is out of control--things like AP test fees, doctor bills.
I'm starting to see that my beginning budget was not very realistic about unexpected expenses.

I hope the sun shines soon!

More Computer Woes

I'm whining just a little. My "a" key is broken, so to type an "a", I have to copy and paste. What a pain!

CC Interest Rates Going Down?

The interest rate on my last credit card has been slowly declining over the past year. It started at over 7%, and now it is just over 5%. Has anyone else experienced this? I think the CC company is trying to lure me into charging more!