Hi there! Welcome to my personal confessions week 26. This week I wanted to share with you about debt, 3/4 of the country is in debt I for one I am in debt. Debt which if I was smarter 8 years ago I would not be in this mess and/or slowly crawling out.
I know this issue is one which is very sensitive for most people but I was encouraged by reading a fellow bloggers attitude towards finances and marriage. So how did I find me in this hole called debt? and How am I slowly but surely coming out of it? Well sit back, relax and have your pen and paper at the ready.
1. How did I find me in debt?
Got caught in the enticing world of credit cards and the beauty of spending and not paying anything back for up to 3-6 months and free interest in that period. Obviously I was not smart because the last statement should really have had alarms ringing but it didn't I mean they say "don't pay anything in 3-6 months" and during that period it's "interest-free", come on Mrs this should have screamed bloody murder but it didn't. I was so caught up in the after glow of not paying anything there and then and returning sometime in the future.
**illusion is thinking in couple of months you will have money that you don't have now**
To make matters I was spending more than I was earning and every time I paid it off I still went back and used it up all over again, this is a vicious cycle which can drown you before your very own eyes.
When I left home and moved to university I literally lived on my credit cards and all the money I earned from my two jobs went to rent, bills and food sometimes the bills I couldn't even manage I was lucky my boo helped me out a lot. That didn't change the situation I had put myself in because I came to a stage were you pay off card so you don't get charged the hefty charges then use the money now on card to pay for everything from rent to food.
2. How am I slowly getting out?
One day I sat down with my mum and had one of them long African talks that you parents give you which come out as advice but are actually
WARNINGS advice, lol. After that chat, I went and wrote down every company and person I owned money (boo excluded) and wrote down how much I earn and how much I can afford to pay each after all the essential bills like rent, transport, house bills etc are taken out.
After that I contacted each company and told them how much I could have to pay back monthly they were understanding because it was either that or nothing. I then calculated how much I owned to people I know then started paying back slowly but surely. It's been 6 months and I am half way through paying back people (almost done) and companies, it feels good to actually go to work pay bills and have money left over for me to spend on my family and myself. One major thing that I did is changed banks, removed OD facility and canceled all credit cards and/or store cards.
So now if I don't have it I don't spend it that's my new rule no more pay later high purchase kinda situation because I am done. I am enjoying our money after everything needed is out, I can go shop and save towards our goals without feeling guilty and stained with sleepless nights.
So that's my story and how I am dealing with debt. How do you deal with your debt and how did it come to be?
Labels: debt, Money issues, Personal confessions