Minimum Payments. Ugh.

Just typing those three words made my eyes bleed.

I know all of my balling out of control banker friends will shake their heads at me, but look, I don't make as much money as you, and my credit card has been faithful to me when I needed her most, okay? She did cheat on me with finance charges and annual fees, but I keep coming back because sometimes she's all I got and because sometimes I'll charge Chipotle. Don't judge.

Anyway, not sure if you recall, but one of my major goals was to do the debt reduction plan from CNN Money. Three years and out of debt, based on these numbers that tell you exactly what you should pay each month on each balance. Pretty rad, eh?

I hate drama but unfortunately it loves me and an unexpected move jacked up all my plans. I'm now settled, but it'll be a while until I can do the plan again - perhaps after the holidays? I plan on getting my parents nicer presents this year. Like a sweet card with three paragraphs of life-long overdue thanks, rather than last year's two paragraphs. I'm on a budget.

But I'm trying not to use the cards while I pay these smaller amounts and not add on to the balances like I used to. The purpose of this blog is to document my saving and spending habits but mostly it's about getting out of debt. How can I do this without paying more than the minimums? I know it's only a three month hiatus, but I want to rock this bitch. Is anyone else in a similar boat? That is, you currently (or used to) pay down, then use, pay down, then use your card(s)? How did you remedy this situation? Did you work two jobs? Did you cut things out of your life? HOW DID YOU GET OUT OF DEBT? TELL ME. FEED ME SEYMOUR.

Hey New Yorkers: know of any part-time gigs? I can cocktail like nobody's business.

apropos

from someecards.

Escape from the debts of hell.

The first step is admitting there’s a problem. Alcoholics use it and I think it fits my case as well. My problem: I’m broke.


How’d I get in this situation, you ask? The three major factors:

1. Living beyond my means: buying things I can’t afford and going places I shouldn’t without anything in the bank. I live in NYC where one can literally spend money in their sleep. And yes, I’ve done that before.

2. Comparing myself to others: “I’m not in nearly as much debt as Katie!” Tsk. Tsk.

3. Saying yes. To everything. Since I was little, I’ve always been afraid I was going to miss out on something. Everything in my mind was an once-in-a-lifetime opportunity. These one-time opportunities have come and gone, but my credit card debt is still there, lingering, whispering, “You’re a dumbass, Blaire. That shirt at Marc Jacobs was not going anywhere and you look sort of fat in it.”


But things can (and will) change.

Aside, from running more often to look good in that shirt, I am embarking on a financial cleanse, retiring my old habits and learning to “make do” with what I got. Officially beginning September 1, 2009, I am a new woman. I’m cutting up two of three of my cards and changing my lifestyle. Any tips are welcome. Any cash you’d like to offer is better.

Why am I doing this? For a lot of reasons, but mainly because I’m better than this. I want to feel like a responsible, 26-year-old. I want to be able to buy a goddamn ticket home to see my brother when he’s on his two-week leave from Iraq. I don’t want to get stomach pains every time I write my rent check. I want to travel. I’d like to not worry about the guy of my dreams running scared when he sees my bank statement. Money isn’t everything, but it sure does help if you have a little for the important things.


Things I’m going to do here:

1. Write about my progress with le credit card debt (you’re going down, bitches)

2. Document my spending (every Metrocard, every Pinot Noir)

3. Document my saving

4. Research better ways to save, invest and cut back on things


Get ready friends. The first day of the next three years (or less!) of my life is near. September 2012, Visa will no longer own me. Assholes.


Check back on September 1 for official updates. Until then, I will be posting random things I find on the net relating to money, saving and mean credit cards.


Disclaimer: I may never reveal the grand total to you – for fear that my mother and father suffer heart failure - but know this, dear reader: it’s not a pretty number. I am not proud of my past frivolous spending. I know some creditor reps by first name. I’ve charged a single avocado. But you gotta start somewhere. To see results, I think I’m going to put things in terms of percent change, and perhaps when this great endeavor comes to an end (already feels good to say!), I’ll let you in on the total debt. Until then, stay on the edge of your seat. And to all moneybags out there, feel free to donate via the PayPal link. I'll smother you with kisses for life.