I'm 25 and I have $11,000 in credit card debt. Yikes.
How did it happen?
I'm sure you've heard it before, but my debt crept up slowly on me. I wasn't exactly living the high-life, but as credit card companies offered me more credit I took it and used it for little things here and there, mostly necessities. Here are some of the biggest necessities:
- Getting out my wisdom teeth & other dental issues
- Buying a used car
- Deposit and first month's rent on a house
- Various school-related expenses
I've always been able to exceed the minimum payments, and I still can, but I've finally decided that it is time to pay it off. In fact, I've made it my new years resolution to pay off ALL OF IT in 2009.
How?
First, let me say that I haven't been given any money, and I plan on keeping the same job and house. I'm not looking for a miracle to happen. I'm just going to sell some stuff, cut-back on expenses, work longer hours, and ask for a reasonable (and over-due) raise.
Here's my 4 step plan to get myself out of debt
1. Sell some stuff
Including my car, I have about $2,500 - $3,000 in stuff I can sell. I've bought and sold a lot on eBay before, so I know how to get the most out of it. Paying down this much debt will lower my finance charges (currently at about $100/month) and will pay off most my low purchase balance so that I can start paying on my substantial cash advance debt. That's how credit companies do it: they apply payments to your lowest APR balances before allowing you to pay off high APR balances.
2. Cut-back on expenses
After going over my bank statements, it turns out I need to spend at least $1,200 a month on rent, utilities and food. I currently spend a bit more on food because I don't eat at home very much, so I can cut back there.
Selling my car will save me about $70/month on gas and $50/month on insurance.
I've been donating about $50 a month to various social causes, and although it kills me to stop, I have to. I swear I'll donate monthly again in 2010.
And that's about all I can cut back on. Like I said, I don't exactly live the high-life.
3. Work longer hours
First off, I only work part time. I've been working about 25 hours a week for the past few months. I get paid hourly, so just by showing up 15 minutes early, leaving 15 minutes late, and taking only a half hour lunch break, I can add another hour to each day and thus increase my monthly hours by 20. Unfortunately, this won't be quite enough, so on to step 4.
4. Ask for a raise
It's been more than a year since my last raise, and I know I'm worth more now as an employee than I was a year ago. So I just have to work up the courage to actually ask. Lucky for me, my boss is an honest guy and I think he knows a raise is due.
After doing the math, I know I can do this. I keep imagining what it would be like to be debt-free in 2010, and the thought makes me happy.
ListToQuery: My first CFLib submission
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My first submission to CFLib.org has been approved and posted! Check it out:
CFLib.org - listToQuery.
It is super-simple and does exactly what it says. I ...
2 months ago
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