After making the decision to turn my back on my spendy lifestyle a year ago, I knew the first step to climbing out of my tens of thousands of dollars of debt was to be cognizant of everything I owe and to whom I owe it to. One of my very first posts on this blog was The Round Up, a summary of all my debts as of December 30th, 2015. I grabbed all my statements and faced the music; I worked it out, wrote it down, and posted it up for all the world to see.
I must admit I still feel embarrassed and extremely guilty when I see my current debt figures. Sure, some of those numbers came from paying for my education, some came from seeing the world and some came from a medical bill that occurred while I was out of country. However if I’m going to be honest with myself and everyone else, I need to admit that most of that debt comes from making bad decisions, spending without regard for my financial future and straight-up overindulgence. It’s still a punch to my now-frugal gut to look at those numbers and know I racked them up to that extreme living what my mom used to refer to as my “dolce vita.”
To keep myself motivated on my debt repayment plan I’m going to make The Round Up a series where I regularly post my progress every month. I thought a great place to begin is to state exactly where I am right now. Below are the balances on my debts, as of today:
- Visa: $2,085 (19.99%)
- Line of Credit 1: $12,000 (8.80%)
- Line of Credit 2: $13,924 (9%)
- Line of Credit 3: $10,100 (9%)
Total Commercial Debt: $38,109
- Loan from a family member: $20,000
Grand Debt Total: $58,109
With that out of the way, enough bellyaching, Frugal Desperado – time to go upwards and onwards!
Compared to my first The Round Up post, my debt is down by $5,161. I am choosing to feel good about this. I know that I could’ve/should’ve paid off more than this and I would have if I didn’t have some lapses of self-discipline and willpower. I’m going to stay upbeat and remind myself this is the first time in 10 years my debt has gone down as opposed to up from one year to another. It may only be a little win, but it’s a win, and I’m going to use it as fuel to go into turbo drive for next year – starting from today.