Debt, it’s the American Way. We finance ourselves to our eyeballs, pay a gazillion dollars a year in interest charges, and when money is tight, well, we just get another loan or refinance.
Yeah.
Having grown up in rather extreme poverty, and watching my step-dad constantly re-mortgage a house that was given to him free and clear (!!!), I hit my twenties with a pretty screwed up concept of financial management. It didn’t help that in those early days I was also a SSAHM and didn’t have two pennies to rub together. Once the kids hit school, and I got a job, things dramatically changed.
Oooh, you mean you’ll give me a credit card? Nice! Suckers!
Ha. Little did I realize that I was the sucker. Fast forward to my mid-thirties and I had developed much of the same mindset that my step-dad had and others had: if you can’t afford it, finance it, interest rates be damned! Couple that with carrying debt based on bad relationship decisions, and you have a recipe for… well, I wouldn’t call it disaster, just piss poor financial management. A little loan there, a little living expenses on the credit cards here, and before you know it, I’m paying out a few hundred dollars a month in interest charges for, well, hell, what was all that for? Nothing I can put my fingers on now, I’ll tell you that. Just stuff.
I made two very quiet resolutions this past new year’s eve. One I’m still working on and is a private matter not to be spoken of in such a public forum. The other? Well, to erase a whole buttload of debt, clean up my finances, and start planning for the years ahead after the kids are in college and I’m running free. Because you know I am -so- leaving the country when I’m clear of this here mommyhood gig!
In the last month, I’ve paid out a few dollars shy of $12,000 in debt reduction. I’ve paid off three loans and three credit cards. (Updated: It’s actually over $12k, and four loans, forgot about a personal loan I paid off mid-Feb. Whee!) And while this may not seem like a big deal to you, to me it’s a very big deal. In doing this, not only have I cleared myself of debt and ridiculous finance charges, but I have also finally purged a great deal of my past. Several of the aforementioned items were in large part due to two very bad relationships. One of them I’ve been carrying around since roughly 2001. For nearly six years there has been a ghost in my life, in the form of a monthly statement that would piss me off every time I saw it. For the last year or so, another ghost saw fit to join in the fun.
Living with the financial ghosts of my past has never been a good thing. But now they are gone. And that, so much more so than the cleared balances, is a beautiful thing. Gone. Finally, forever, goodbye.
Next up, getting those damn cars paid off!