The Round Up Part 2 – October 2016 Edition

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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

Ouch.

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.

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5 Comments

  1. Fantastic FD that you’ve clarified exactly where it’s at with the debt, a really really good move. You’ve inspired me to do the same in this comment. Here’s my debt as at right now:

    Visa $4,412.91 (13.49%)
    P/Loan $9,490.00 (7.99%)
    Gem Visa $1,215.27 (0% till Aug 2017)
    M/Card $4,581.50 (0% till Feb 2018)
    ————————
    $19,699.68 (down by $4,873.32 since Jan 2016)
    ————————

    Mortgage $185,218.70 (4.59%), a reduction of $3,007.30 since Jan 2016

    Total reduction: $7,880.62

    Also paid off a $1,200 computer purchase from a friend, so total of ***$9,080.62*** in 10 mths, average of $908 per month, not too bad for this little black duck, considering I’m paying land rates ($1,900 per year) as well as running a car.

    This has been an interesting exercise, thank you FD! It’s great to appreciate where one is at and how it’s going.

    Oh I wanted to add – I know my total debt (outside of the mortgage) is less than your current amount, but as we’ve mentioned before, it’s not the amount, it’s how we feel about it and what we’re doing about it that is the real issue. And also I think I’m quite a bit older than you and it’s possibly more challenging (?) to be carrying debt in one’s middle age, although it’s never too late to address it and to develop good habits and responsibility. So what you are doing now (at your younger age) is brilliant, even though it can seem depressing sometimes. It would be even more difficult if you were still acting out these patterns in twenty years time, ahey?! So go girl, you’re onto it, well done you.

    And that’s enough for this comment!

    1. Over 9K since January!!!! Look at you!! Congrats Marian – you are phenomenal! I am doing a little happy dance for you and sending you lots of hurrahs! I’m trust that little exercise of adding it all up and seeing the incredible progress you made feels fantastic – as it should! Please never sell yourself short for that. Consistently chipping away at your debt the way you do takes SO much self-discipline and perseverance, which can be so tough when we’re constantly being bombarded with messages to consume/buy/acquire more. Good on you!!

      I agree everyone’s debt load has to do with the emotional state of the debtor and how they plan on handling it. I have a friend who has about double the debt I do and scoffs it off with “well we all have debt, big deal” and on the other hand I recently read a blog post from someone losing sleep over a 5K credit card (if only I stressed more and decided to take action all those years ago when I was only 5K in debt! I would be in such a different spot today). I read a Louise Hay quote once that said “the point of power is always in the now” and it’s so true – however old one is when they decide enough is enough isn’t what matters most. What counts is making the firm decision that today is the beginning of the rest of our lives and choosing to live it differently than days past. Then one foot ahead of the other, always going forward.
      Thank you for your comment and for sharing your good news!

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