It's been quite a long minute since I've written. Work is long, the commute/traffic is even longer, and life has gone on without a hitch.
One thing that has changed is my debt. I have rid myself of unnecessary credit card debt, and I'm putting a good dent in what I refer to as "good debt." On my new Droid phone, I downloaded an application called "Financial Calculators." You input all the debt information, how many months you want to pay it off in and bam you are instantly given an amount to pay. Stick with that amount for that time period and watch the balance dwindle away.
Then dance on the final billing statement that reads "Balance: $0" out in your front yard while singing "I paid you off, na na na boo boo."
Okay, you don't have to do that. But it sure does make good conversation for old Mrs. Kravitz next door.
Anyways, here's my break down for what I consider bad and good debt. You might not agree with my reasoning, but it's how I look at things.
Bad debt= the credit card debt that started with that laptop that I bought back in 2007. I was a dumb, stupid college kid.
Good debt= The credit line I had to take out for a necessary root canal performed by an Endodontist. That lady knew exactly what she was doing, and she did it right the first time, as opposed to the rest of the procedures done on that tooth by my general dentist. I have a mapped out plan to pay this off by October by paying close to 3 times the normal monthly payment. Just because I call it good debt doesn't mean I like it.
Also good debt= My student loans. A college degree will take me much further than a life without a college degree and its a fixed rate loan so that economy can go ahead and ride the roller coaster. This is the one monthly payment that I'm paying the minimum on right now.
Another huge step in my life: I keep a checkbook register religiously. Amazing how that keeps you from overdrawing your account, huh? Not to mention, I'm flabbergasted by how much I spend frivolously. It's that debit card, I tell ya. Which brings me to my next phase:
THE ENVELOPE SYSTEM.
This will be implemented along side my paycheck on Friday, so I will update on that new transition when it gets underway.
I know I'm not saying anything that's a new thought or idea, but it's changing my life right now. If I could go back in time and smack myself for even thinking of using that credit card, I would. I don't understand why people continue to ignore their debt but I know its human nature to want what you can't have. I'm learning to get over this, one big kid step at a time.
