======= ======= ====== ====== ====== ===== ==== ====== ====== ===== ==== ======= ======= ====== ====== ====== ===== ==== ====== ====== ===== ====
Welcome to the newest installment of “Getting Out Of Debt,” a new series where I realize just how horrible my financial situation is and figure out how in the world I’m going to rectify it. If you missed the last column, read Getting Out Of Debt: Creating A Budget.
I’ve spent a lot of time over the last few weeks understanding my financial situation, through finally realizing how in debt I am and creating a budget to work through it. Although it’s given me a couple of heart palpitations along the way, it hasn’t been that bad yet – mostly because everything I was learning was theory, not application. In college speak, I’d been spending a lot of time procrastinating by working on my term paper outline. Now the outline is done and has been flushed out to its fullest extent, and if I don’t actually get down to work on the paper soon, I’m going to fail out of this class.
We’ve moved onto the “action items” step of my plan to get out of debt, and I’ve realized that the first step to making sure I actually improve my financial situation is getting rid of any opportunity for me to accumulate more debt. This means that it’s time for me to cut up my plastic.
I knew that to become debt-free, I’d at least have to stop spending, so a few weeks ago, I put my credit cards in a drawer on my nightstand. This seemed like a safe option – there was no way I could binge-buy work lunches or shop online, but I’d also have a line of credit in case of an emergency. Before I created a budget, I’d keep these cards on hand for the end of the pay period, because emergencies often came up. Now I know that I really don’t have any excuse for emergencies, and if that’s true, there’s no use for those credit cards.
Knowing I needed to cut up my credit cards and actually doing it, however, are two very different things. Just like in my past, I knew intellectually that getting a “u up?” text meant only one thing while I could talk myself into believing that maybe he did actually just want to watch a movie, and I knew that I could convince myself to hold onto these credit cards “for emergencies” but still have the plastic close by in case that emergency happened to be a 25% off site-wide sale at Target. I quickly downed a can of wine for liquid courage – really, this cheaper alcohol isn’t actually that bad – and went to grab a pair of kitchen scissors.
I spread my array of cards on the counter and picked up my least favorite – the card I’d gotten in an emergency that had a horrible interest rate and had never even had much of an available balance for me to spend anyway. I took a deep breath and cut it in half. I expected to feel pain, but that’s not what happened – it was relief. I cut the halves into smaller pieces and I was hooked. I had to cut up all of these cards as quickly as possible, and with each cut, I felt more empowered. This “getting out of debt” thing isn’t just on paper anymore – it’s actually happening, and I’m taking control of it with just a pair of scissors. I scooped up all of the shards and went straight to the garbage chute to toss them down four stories just in case I got the itch to start pasting them back together in the event of a sale at Ann Taylor, but I knew that wouldn’t happen. A change has taken place – I’m no longer a consumer held captive by MasterCard. I’m getting out of debt.
I have no backups, no safety nets for purchases. I have to stick to my budget now, because I don’t have any other choice. I’m both terrified and exhilarated. There’s no turning back now, because at the very least, I know that at the end of the day, I’m entirely too lazy to call Capital1 and ask for a replacement card. While I’ve been doing research before, the actual journey starts now. I’m confident I can do it, but for the sake of my self-control, leave me off of the Sunday brunch group texts for a couple of weeks, ok? I’m talking to you, Karla. I’ll be drinking my bottomless mimosas at home made with discount André for a while, but as long as I can get out of debt, it’s going to be worth it..
Image via Shutterstock
Respond
Steph W.
Steph W. is a new Master's degree graduate with an intern's salary and six-figure taste. She realizes her expectations far exceed reality, so she spends her days pinning away Loubs she pretends are in her physical closet instead of her virtual one. Her hobbies include attempting to trapping her boyfriend into marriage before he finds out how insane she is and pretending that Black Box wine tastes as good as the kind she could afford when she was gainfully employed. Send her tips for getting out of student debt at recruitchairtsm@gmail.com
@therecruitchair
This is a huge step, and I’m sincerely excited for you for making it. You specifically call out brunch, but I like to extend that to all areas of life. If you can’t have as much fun being on #TeamHomeBrunch as you would going out, you need new friends.
Invite some friends over, tell them to bring some champagne and OJ, and whip up some eggs over easy and cinnamon rolls. It costs you way less and trust me, you’ll have a lot more fun than if you were being served by some hungover 22 year old in a loud, crowded restaurant. Want to go out for dinner with your friends? Why not set up a biweekly dinner night where you rotate who cooks every time? Grab a bottle of wine to share, you’ll learn to like some new foods, and you’ll get to actually talk to each other instead of shouting over the new Chainsmokers song while paying $22 for a chicken wrap.
In completely unrelated news, I am old.
Do you utilize a pay_pal… because if you do you can add an extra 300 /week in your profit just working on the laptop for five hours per day. go to this page…
Good Luck______________ http://cutt.us/grDyB
My mother, who was a financial genius, always said you have to be willing to be uncomfortable and live below your means if you actually want to accumulate wealth in your life. You’re doing it right!
Great advice
Invest heavily in the military industrial complex, coffin manufacturers, and pregnancy products/services so you optimize your ROI on the full spectrum cycle of modern life and you’ll see that debt evaporate in no time! Go get’em Tiger!
Big Tobacco is good too. Vices always survive the recessions.
Altria (MO) pays an unhealthy dividend every year. Get you some of that sweet, sweet vice money.
I can never tell when your are being serious…
I’m pretty much always being serious except I mask it behind humor, satire, and sarcasm so when easily offended people read my stuff they go “oh that Devin, he’s just kidding lol” and move on but then the intelligent people read my stuff and go “damn he’s got a point” and start to look into stuff
I’ve committed many an internet deep dive based on your comments
That is exactly how I can insult people to their face and they think I’m joking.
HUGE first step, congrats! Now work on increasing your income by any means necessary. Get a part time job: Uber, waiting tables, starbucks, focus groups, baby sitting, passing out fliers, odds and ends jobs, ANYTHING! You’d be amazed at how many side jobs there are on craigslist. Ive made some good money responding to ads on craigslist passing out fliers or working a promotion for an alcohol company or something. Use all of the side income to pay off debts and increase savings.
Friends and coworkers used to laugh at me for driving for uber part time or waiting tables on the weekends while working a full time corporate job. But now I am debt free and those same people come to me for financial/investment advice. Never be too prideful to make extra money working a job thats “beneath you”.
I look forward to these updates every week, keep them coming!
Thanks for the motivation to find my side-hustle!
This all sounds good except for the
“I have no backups, no safety nets for purchases. I have to stick to my budget now, because I don’t have any other choice.”
Please buildup at least 3 months worth of living expenses in case you get into a pinch and need something. Having a car accident or random medical bill is much easier to cope with if you have a bit of cash stashed away.
Steph, your bio says “attempting to trapping her boyfriend into marriage,” just FYI.
Been looking forward to this installment since the last one. Keep the momentum rolling!
You’re really inspiring me, Stephanie. I’m in a financial bind myself, I was just thinking to myself today that I should cut up my credit cards, but I don’t want to! I’m looking into getting a side hustle. I’m glad I stumbled upon your latest article. I’ve been reading your articles, funcheaporfree.com, and Dave Ramsey for tips and inspiration. Keep up the good work, and I hope you reach your financial goals soon!
Good move. I just had a conversation with my sister about her getting a credit card and I had to explain that she needs to treat it like her debit card. I use my cards for everything (for the perks) but have never carried a balance yet. I’d recommend getting a new card with a 1yr 0% intro rate but from your columns it seems self-control is the issue and cold turkey might be best. Good Luck!
Way to admit the problem. Not everyone can do that. Remember that once you find stable footing, having a credit card and paying it off every month really helps building credit.