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Over the years I have accumulated about 15k in credit card debt. I have put myself on a strick budget and I intend to pay every cent back.
I used to do a lot of "retail therapy" so this is really hard for me to NOT go shopping when I have a feeling that I don't know how to deal with.
It's been tough, very tough.
My question is do you think my $15k debt is an enormous amount, average, or something else.
I'm still dealing with all the self-loathing that comes with putting myself in this situation. It has taken 10 yrs to get to this and I can't believe I was such a fool for buying stuff I didn't need and don't even remember buying.
Any thoughts? Or advice on how to pay this back without feeling like such a poor example of a human being?
it happens, the important thing is you've recognized the behavior and are trying to control it. that's not a poor example by any means. Good luck, and make sure you write down your goals, and track progress towards the goal. small victories are nice rewards too. I 'celebrate' every time i reach a milestone point on my student loan balance.
You can definitely do it! You've taken the first big step and that's realizing it.
Now that you're in the hole, a very important thing is to stop digging.
One thing that I've done to pay down CC's is to simply spend less, especially on things that aren't essential. I went with a pre-paid cell phone, eat out even less, really cinched down on grocery shopping and just didn't buy very much.
Originally Posted by luckygirl15 Over the years I have accumulated about 15k in credit card debt. I have put myself on a strick budget and I intend to pay every cent back.
(snipped for brevity)
It has taken 10 yrs to get to this and I can't believe I was such a fool for buying stuff I didn't need and don't even remember buying.
Any thoughts? Or advice on how to pay this back without feeling like such a poor example of a human being?
To the OP - Would like to emphasize that if it took you 10 years to get to this point, don't expect it to be all fixed in 1 year.
Don't get discouraged, just keep plugging away at it.
I have mixed feelings about Suzie Orman, but a very helpful thing she once said is, always ask yourself, at the point you're going to buy something, is "Can I really afford this?"
That momentary pause and reflection, is often enough to get you to put something back, and end your day genuinely saving some money!
It helped me when I owed around 7K years ago. Been debt-free now for many years!
Location: Huntersville/Charlotte, NC and Washington, DC
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Quote:
Originally Posted by luckygirl15
Over the years I have accumulated about 15k in credit card debt. I have put myself on a strick budget and I intend to pay every cent back.
I used to do a lot of "retail therapy" so this is really hard for me to NOT go shopping when I have a feeling that I don't know how to deal with.
It's been tough, very tough.
My question is do you think my $15k debt is an enormous amount, average, or something else.
I'm still dealing with all the self-loathing that comes with putting myself in this situation. It has taken 10 yrs to get to this and I can't believe I was such a fool for buying stuff I didn't need and don't even remember buying.
Any thoughts? Or advice on how to pay this back without feeling like such a poor example of a human being?
$15k would probably be average to below average, speaking as a personal banker. You should not feel like a bad human being, you have done something that most of America has done at one time or another, even myself, get into debt. I would definitely explore the personal loan option if you can get a lower rate than your current interest rates on your CCs. If that does not work out, first I'd try to pay off the card with the smallest balance first as sort of an emotional boost.
You can go to a non-profit credit counselling service that can negotiate with your creditors for lower interest rates. You still pay off the actual balances according to a plan, pay very little in fees, and take little hit on your credit history.
My wife and I had about 13k in credit card debt between 5 cards. We went to our credit union and got a signature loan to use to pay the cards off. We now have a 333 monthly payment instead of 800 in monthly payments going 5 separate ways. Try to do that. Its much easier to manage.
My wife and I had about 13k in credit card debt between 5 cards. We went to our credit union and got a signature loan to use to pay the cards off. We now have a 333 monthly payment instead of 800 in monthly payments going 5 separate ways. Try to do that. Its much easier to manage.
Do this, I did this and I am 2/3 done paying for the loan. It quick, easier to manage, and your credit score jumps up. Also with this way you can not charge anymore, but I was never a big charger to begin with.
Also, I would seek some credit counseling, and I mean like emotional counseling and behavior habits tied to your spending. I believe that the root of the problem.
If that is not fixed, you could easily fall into the same habits. I would know as I have the same problems with eating.
What does anyone think about taking out a line of credit on your house to pay off your credit card billing? I stopped at the bank today to cash in a CD to pay for my son's college tuition this semester.
I got to talking to the banker and he suggested that since I have so much equity in my house, I take out a line of credit (25,000) and use $9000 of it to pay of off my credit card debt. Reason being that the bank can give me a 3% interest rate and the credit card company is much, much higher.
I'm just tired of paying so much in interest and would like to pay it off quicker.
We moved away from our hometown about 4 years ago and I guess I spent a fortune running back and forth; hotel bills; doggie boarding, gas, etc. Plus, all my son's swimming fees were put on the card (that's how the club team billed) and those were quite high. Long story short, I'm trying to take a hard look at where I am today.
I'm definitely horrible at finances. Lord only knows how I got as far as I did in life.
A few things I'm taking away from your original post:
1. You've admitted to retail therapy, meaning you probably shop the most when you are upset.
2. You feel extreme guilt for the things you have purchased, admitting that you are not sure what you've spent all of the money on.
3. You are going to an extreme to be as frugal as possible to pay off your debt as quickly as possible.
Some advice I am going to give you:
1. Do not go to an extreme in order to pay off your debt. Of course, don't use your credit cards, but also don't go to the opposite and start living off of ramen noodles in order to pay off your debt as fast as possible. Likely, your issue with spending is emotional, and this will have a negative effect on your health (both physically and mentally).
2. Understand the root of why you were spending so much money and fix it. Whether it's going to therapy or finding a different way to deal with stress/anger.
3. Create a budget for yourself for the year of 2014. Project where you will be at the end of the year. Give yourself a set budget for food and fun (always give yourself a little room for fun!). If you can, set aside a little bit of money for savings as well. I'm not sure if you're already doing this. If so, great!
These were just some things I learned when I got into a lot of debt and realized I was doing the same thing. It is really easy to spend a lot of money when you have a credit card in hand and you've had a bad day (or month... or year... you know).
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