Debt
Post Reply
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
04-04-2013, 06:08 PM
Debt
Let me cut to the chase.

I have finally realized that it's time for me to start acting on ways to get out of credit-card debt. How much I have, I'm not comfortable stating in such a public forum. Let's just say it's not as low as a couple grand, but not in the six-figure or mid-to high five-figure range either.

Here are my issues:

1. How to find a second job in this market - what are logical strategies to use, and what logically should I be looking at? I'm especially nervous about this first step, though it will be the way I start paying off this crap.

2. Short- and long-term motivation - this should be fairly easy for me, because I don't want to live under this stress and bondage any longer. My greatest challenge is with my own natural pessimism and depression. Sometimes I can't see anything but bad endings, and only an invisible dark cloud hovering over everything (those who struggle/suffer from depression will understand what I mean by that). I have to make myself get up, get showered and get out of the damn house.

3. Dave Ramsey. When I was a Christian he was the one source everyone pointed to and I went through part of his Financial Peace seminar on two different occasions. IT's natural when dealing with challenging situations to look to other people for guidance and inspiration and as examples for yourself. But Dave Ramsey is openly Christian and evangelical Christianity saturates much of his advice. How can I look at him through the eyes of reason? Or should I? (Or, is there someone else out there who I can better learn from?)
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes BrianD's post
04-04-2013, 06:34 PM
RE: Debt
I think you're probably secure enough in whatever you believe that you can take the advice without the dogma.


God is a concept by which we measure our pain -- John Lennon

Find all posts by this user
Like Post Quote this message in a reply
04-04-2013, 06:40 PM
RE: Debt
(04-04-2013 06:34 PM)Momsurroundedbyboys Wrote:  I think you're probably secure enough in whatever you believe that you can take the advice without the dogma.

I know I am. I don't think one learns as well in a vacuum (alone) as with other people.
Find all posts by this user
Like Post Quote this message in a reply
04-04-2013, 06:47 PM
RE: Debt
(04-04-2013 06:40 PM)BrianD Wrote:  
(04-04-2013 06:34 PM)Momsurroundedbyboys Wrote:  I think you're probably secure enough in whatever you believe that you can take the advice without the dogma.

I know I am. I don't think one learns as well in a vacuum (alone) as with other people.

We've tackled our own credit card debt. At one time we had racked up nearly 20k

I kept all the cut up cards and final,statements from when we paid them off. It took a long time of eating ramen noddles...no vacations...no dining out. It took 5 years. I wasn't working either our first was little.

Don't know what Ramsey tells people to do, but we switched to a cash only basis. It was soo hard. Embarrassing when you get to the register and realize you had to put things back. But really you learn.


God is a concept by which we measure our pain -- John Lennon

Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes Momsurroundedbyboys's post
04-04-2013, 09:08 PM
RE: Debt
That is what he teaches. Cut up the cards, cash only, rice and beans.
Find all posts by this user
Like Post Quote this message in a reply
04-04-2013, 09:08 PM
RE: Debt
I'm also in the same boat BrianD. I made two foolish mistakes...

(1) anytime the family wanted to do something like eat out or go on a trip I would put it on my card and tell myself I would just "put in a few extra hours" at the office
(2) I launched my moon-lighting business with an office, employee, computers, etc and paid for what I could use credit card.

My employee did not earn me near the profit I expected (took him 6 hours to do something I could do in 1). Also, the management... paperwork... etc meant that I was still working 20 hours a week on my business, but only making 10% of what I made before...

Needless to say after many years of doing this I would guess I'm in the same debt bracket as you.

Two things that are helping me get out...

I have a co-worker who is a die hard frugal spend thrift. He won't buy anything unless he has cash. I think he probably has a ton of cash hidden in a mattress or something. He said something once about living simple so that you are not a "slave to debt."

That stuck with me. I got rid of the employee, the office, everything I could. I try to make sure all my hours are billable. The point is... I definitely share your pain... I feel like I'm working for MASTERCARD not for ME. Makes it hard to keep pushing on at times, but slowly it is getting chipped away. It seems to take forever. I don't feel like I have dropped it near as much as I should have - but, I have gone from a $0 bank account to one where all my bills are paid on time and I have some emergency cash in the bank to cover taxes and such.

Bottom line - stick with it ! ! ! One thing I try to implement is that is I want to buy something that costs $100 I need to be able to pay cash for it + give the credit card company another $100. This does two things... first, it makes it harder to impulse buy... second, it slowly chips at the debt... remember, it got that high a little at a time and it can disappear the same way...
Find all posts by this user
Like Post Quote this message in a reply
04-04-2013, 09:56 PM
RE: Debt
Rich Dad, Poor Dad and CASHFLOW Quadrant by Robert Kiyosaki are both good books for understanding basic finance. I think he's a theist but he's not bothersome with it. Those and any other books you can read on finance are all good information, even if they aren't written specifically for debt reduction. I know that in the books I listed above, there are some creative ideas on how to earn extra money but it's been a while since I read them so I can't cite any examples off hand.

Personally, I don't care for the cash only model, for a variety of reasons, but that may work well for you. I'm happy to share my thoughts on the subject if you're interested but I don't want to write a novel here with no audience. Tongue

The beginning of wisdom is to call things by their right names. - Chinese Proverb
Visit this user's website Find all posts by this user
Like Post Quote this message in a reply
05-04-2013, 10:03 AM
RE: Debt
(04-04-2013 09:56 PM)bbeljefe Wrote:  Rich Dad, Poor Dad and CASHFLOW Quadrant by Robert Kiyosaki are both good books for understanding basic finance. I think he's a theist but he's not bothersome with it. Those and any other books you can read on finance are all good information, even if they aren't written specifically for debt reduction. I know that in the books I listed above, there are some creative ideas on how to earn extra money but it's been a while since I read them so I can't cite any examples off hand.

Personally, I don't care for the cash only model, for a variety of reasons, but that may work well for you. I'm happy to share my thoughts on the subject if you're interested but I don't want to write a novel here with no audience. Tongue

Go for it!
Find all posts by this user
Like Post Quote this message in a reply
05-04-2013, 10:14 AM
RE: Debt
There was an article about a year ago on a recent grad student who had a six-figure debt that he had basically eliminated within a few years. The strategy wasn't just rice and beans and cutting up the cards. He still went out to bars, but brought his own liquor in a flask (illegal in some places) and got free club sodas (which a lot of bars do). No eating out (not even fast food). And he focused on cutting transportation costs plus charging for certain things. Like, renting out a room in his apartment, renting out his car, etc.

“Science is simply common sense at its best, that is, rigidly accurate in observation, and merciless to fallacy in logic.”
—Thomas Henry Huxley
Find all posts by this user
Like Post Quote this message in a reply
05-04-2013, 10:33 AM
RE: Debt
(04-04-2013 06:08 PM)BrianD Wrote:  Let me cut to the chase.

I have finally realized that it's time for me to start acting on ways to get out of credit-card debt. How much I have, I'm not comfortable stating in such a public forum. Let's just say it's not as low as a couple grand, but not in the six-figure or mid-to high five-figure range either.

Here are my issues:

1. How to find a second job in this market - what are logical strategies to use, and what logically should I be looking at? I'm especially nervous about this first step, though it will be the way I start paying off this crap.

2. Short- and long-term motivation - this should be fairly easy for me, because I don't want to live under this stress and bondage any longer. My greatest challenge is with my own natural pessimism and depression. Sometimes I can't see anything but bad endings, and only an invisible dark cloud hovering over everything (those who struggle/suffer from depression will understand what I mean by that). I have to make myself get up, get showered and get out of the damn house.

3. Dave Ramsey. When I was a Christian he was the one source everyone pointed to and I went through part of his Financial Peace seminar on two different occasions. IT's natural when dealing with challenging situations to look to other people for guidance and inspiration and as examples for yourself. But Dave Ramsey is openly Christian and evangelical Christianity saturates much of his advice. How can I look at him through the eyes of reason? Or should I? (Or, is there someone else out there who I can better learn from?)


I am not at all a fan of debt. I don't like to owe people money (makes me feel "icky") and I think it is far too often pushed on people to feel that it is "normal" and everyone has debt, so why not you? That's the feeling i get from a lot of people anyway. "Well you need a credit card with x balance for an emergency" or "well what if x happens?" and we get in the habit of justify having a debt looming over our heads as if it is "normal"... but isn't it always stressful? Doesn't it just always feel like shit? doesn't it suck? That's why I hate it.

- finding a job should depend on your goals, duration and what the end result should be. Do you want to stay there? Do you care how much you make there? I can tell you that two jobs will keep you busy as hell and may wear on you quite quickly. However, short periods of time may be "OK" but your health and sanity are important. I don't think I can give you a bulletproof "this is how" answer. You might see if there is contract work that can be done that pays well for short periods of time on your off days. I built fences some time ago. Paid well, work was rewarding and easy, and when it was done it was done. Most home owners aren't in a gigantic hurry either. Mind you I'm a nerdy little dude, but it was doable, and it got me in shape a bit.

- Short term motivation? Less debt, more comfort. Long term? No debt, lots of comfort! Having little to no debt is like having a giant weight off your shoulders. Set yourself a goal. I set mine to being, "My only debt will be x. If I buy something it will be in cash. I will have x saved aside and will own my assets." start small and work your way up. Start by setting REALISTIC short term goals. You feel huge and so much better when you set ATTAINABLE goals and achieve them. Start small and work your way up.

- Most of the guys who preach about "peace" through "financial situations" and do it with "the glory of god" end up just saying, "God will just take care of you and just take peace in that!" at least most the time i've heard it. It's just a lot of horse shit to make you feel like it'll all be ok. YOU need to be in control of your finances, YOU need to be in control of your "ultimate destiny" so to speak. You have the control, you can make it happen, but you need to sit down and be realistic. If it helps, find a CPA or financial advisor, someone good with finances that you are COMFORTABLE dealing with and talking about how much you owe and how to take care of it.

There was a time when I was in debt up to my eyeballs and was always stressed. I owed on 3 cars and a credit card and I absolutely fucking hated it. I don't even own those vehicles anymore and when it was all done I cut up my card. I do not even have a credit card in my name. I'm not even 30, paid off my debts, school loan and only owe on my house. If I can do it, so can you. But none of it is done overnight, can even take years. But patience, motivation and realistic goals are key.
Find all posts by this user
Like Post Quote this message in a reply
Post Reply
Forum Jump: