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My (then $42k) debt was made up of car repairs, consumer purchases, late penalties, and education loans. I’ll purposefully disregard any incoming alerts to give the impression that everything is fine. I’ve always been the “next pay-day” man, so take advantage of everything while I’m still alive. I’ll just bring it to the shop and pick it up later if I don’t feel like completing any car repairs when I know I can. If a new DSLR camera comes out and I think I deserve it, I’ll just swipe my credit card and check the balance later if I remember. I’ll act as though the bills will pay themselves out of thin air-no harm, no foul.
No matter how we look at it, it all comes down to the numbers:
Credit Cards $8,126.99
Student Loans $9,649.84
Outstanding balance: $17,776.83
BELOW ARE GENERAL DESCRIPTIONS OF WHAT I’M DOING TO REDUCE MY STRESS AND PAY MY DEBTS:
To have a better view on my financial obligation I gathered all my debts, assets and income.
I haven’t seen these figures in a long time; at the time, my subconscious was living the YOLO lifestyle. There was no need to panic because I was still young and had no idea what would happen if my other half-dormant-subconscious decided to take command. I bought a dry-erase board, wrote out all of my debts, and hung it in such a way that I have to look at it every time I walk into the room. I update my progress every three months or so since seeing the same outstanding number on the board for a few months makes it seem like I’m not making much progress, so I sometimes throw more money at it even though it’s being auto-paid the whole time.
The Handful of podcasts I listen to change the way I view money.
Podcasts like ChooseFI, Paychecks & Balances and Marriage Kids & Money are a form of meditation for me. I was surprised to see many of my financial worries had a solution attached, if only I face them and take action. I started following people who were once in my position and able to pay their debt in a realistic timeframe. I cannot forget MrMoneyMustache blog that convinced me how I can do so much with less. As a result, I stopped using my credit cards, kept only one card with me just in case I’m stranded on the road, and saved $8,000 in an emergency fund. This way has reinforced my frugal habits and to do the best with what I have.
ChooseFI, Paychecks & Balances, and Marriage Kids & Money are all podcasts that I listen to as a type of meditation. I was shocked to discover that many of my financial concerns had a solution, if only I would face them and act. I began following folks who had been in my shoes and had been able to pay off their debt in a reasonable amount of time. I’ll never forget MrMoneyMustache’s blog, which taught me how to get more done with less. As a result, I stopped using credit cards, carry only one card with me just in case and put $8,000 into an emergency fund. This method has reinforced my frugal tendencies and taught me to make the best of what I have.
I stopped justifying my purchases as “essentials”.
I have no business spending money on anything that won’t serve me for at least the next three months. When it came to photography equipment, I had a spending problem. I spent roughly $10,000 on studio gear and three DSLR cameras. I don’t regret buying my cameras because they’re now a valuable element of my photography business, but the picture studio I used to run with two partners was short-lived.
I created these debts so I had to face the music.
I applied for the Capital One Bank credit card two years ago with the intention of transferring my highest balance to the new card. I was only given a $300 credit limit once I was authorized. I see it as a mirror of my financial situation, and I know I have to improve if I am to quit working for “The Man” (Banks). I never used that card, and I’m surprised it hasn’t been closed since the last time I checked.
When I’m done paying off these bills, I’m going to max out my retirement accounts (both traditional and Roth) before expanding my investing portfolio.
Until the next DO update.
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Gio founded TheGrowthFocusedGuy in January 2020 because he was fed up with debt.
His mission is to document his journey to Financial Independence in order to motivate and inspire others to get out of debt and begin building generational wealth.
