New Goal

I am inspired again. This time my inspiration comes from another blog I read earlier this week. The writer blogged about finally becoming debt free -- except for the mortgage. I want to do that.

I don't have a mortgage. But I have debt. More debt then I care to admit to myself. Like so many people I live pay check to pay check. In my job I analyze other people's financials. I can not tell you how many people live in debt. Not just mortgage and car loans. Credit card debt is astronomical. How does a family of 4 with an annual income of over $200,000 manage to have over $80,000 worth of credit card debt? And it is not just one client. It is a lot.

So many of us live to our means or beyond. I look around me and see people with nice toys and wonder how they are doing it. I am guessing that I would be horrified to see most people's credit card monthly statements. Hey, I am horrified to see mine. I can complain all I want about the interest rate but the reality is I wouldn't care what that interest rate was if I had a zero balance.

In my defense, I have been trying to pay off one of my credit cards. Once a year. I get my tax return and I put at least 90% of it toward the credit card. But then something happens. Like this past spring my car kept breaking. And it all went on the credit card. And, to make matters worse, I then bought a car. Adding a whole new debt to my pile of debt.

I recently got a bonus at work. Unexpected. I threw 2/3 of it to one of my credit cards. The other part went towards monthly bills. The only problem is that the person who is responsible for the financials in our office didn't do her job. She didn't reconcile the accounts -- for months. So she didn't catch the $20,000 error. So the boss gave us all bonuses because he had extra money. And then the error was caught. So I will not get the normal Christmas bonus. Christmas will be lean this year.

So here is the plan:

Mortgage -- I don't currently have one. Which is a problem. It means that I throw money out the window each month and build no equity. Stupid. Own. Don't rent. I need to buy (of course this is dependent on the getting a new job and moving).

Car loan -- I need a reliable car. I have a reliable car. I have a car loan too. And I am at the beginning of the loan. At least I was smart on not getting a $400 monthly car payment. I will just live with it and look forward to not have the debt in 5 years.

School loan -- I am really not sure how I managed to go back to school last time. But I did. And now I have school loans. I also have the degree. I have been paying on it since graduation -- except for the 12 month break when Ladybug first came home. I currently have 2 loans that total $10,152.65. Not bad for a school loan but I still need to get it paid off. I am giving myself a goal of 4 years.

Credit cards - I have 2 credit cards. The combined total is $6,776.48. Oh there is a part of me that was just relieved when I totaled that number. It could have been so much worse. It has been worse. And the other part of me is truly disgusted. It is unacceptable. I pay about $250 a month in credit card payments. And that is just to keep it even. If I pay the minimum payment (according to the credit card statements) it will take me 27 years to pay it off. 27 year!!! I promise not to use the credit card. Unless necessary. Like the car needs to be fixed. Or if I need to buy groceries and I don't have cash. If I can't afford it, I don't buy it. I promise to pay more then the minimum payment. I am giving myself a goal of 2 years.

Medical bills -- yes my health insurance sucks. I have been working on paying this. Ladybug's last physical was in February and I am still paying it off. My insurance sucks! But I am almost done. $60.29 left to pay. I promise to finish paying this by the end of the year.

That's it. And maybe if I have no debt I will feel less stress. And maybe I won't be such a ...

Mean Mama