#00006 - Budgeting, Money, & Debt
Hollow-Star.net recently posted about debt & credit cards. This reminded me of the wonderful tools I’ve come across on the wonderful inter-web.
A little back-story first. This is my second go-around at credit card debt. Now, to add on top of that, I have student loans to pay. *sigh* It’s so hard not to splurge when this country has been raised to consume more than we actually have an appetite for.
When I was 18, I worked at Sears… I had both the Sears card and the Sears Mastercard. I also had three other credit cards. By the time I made it to college, only three months later, they were all maxed out! Oh my… what a great stress to deal with. So, I paid them off (about $5000) with my student loan money I received my sophomore year. It was pretty stress free, since I wasn’t actually working for the money - even if I was working for my main income.
So, a year goes by and my credit improves and I apply for a small credit line with Chase. I kept it under control for about 6 months then all of a sudden all these credit offers start pouring in. I figured since I kept my Chase card under control, I’d be fine with another… you know “just in case”.
I FINALLY just paid off my second card, through collections mind you. That’s three years after the fact. *slaps head* and when taxes get here, I’ll finally pay off my chase card. Yes, the card that originally only had a $200 limit… I have over $1k in FEES. So ridiculous.
I currently have ONE card that is active that I use for gas, and gas only. I purchase the gas, and three days later call and make a payment with my checking account. Really only to build my credit back up because I’m at the VERY bottom of the totem pole.
If you can avoid it, stay away from cards. $2k will be easier than the $5-6 my boyfriend and I accumulated in the past two years. I’ve been dealing with “debt” for a good 4 years straight now. My credit sucks, I can’t buy a car, I can’t be added to the mortgage when my boyfriend and I buy a house… it’ll be years before it’s back to normal - if ever. PLEASE take my advice if you can and use the tools I’m about to mention!
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PearBudget.com has been a great tool. It offers a pre-made budget excel spreadsheet that allows you to track (through receipts, always keep your receipts!!) how much you spend on what - which you can determine. Give yourself a few hours to learn the programed cells, it’s very intricate and very detailed. I use this spreadsheet to look back on the month and say “Okay, I spent X amount on gas/dining out/work expenses this month” and try to budget a lesser amount for the next month. It’s worked splendid so far.
I also created my own spreadsheet that I actually use to layout what bills are due on which dates, how much the bill is, and if there is a remaining balance - such as credit cards. I also use this spreadsheet to balance my checkbook. I forget to write things down, and I’m always on this damn machine, so why not do it all at once? This tool helps me not overdraft, and it helps me keep track of when bills are do. I can also determine which paycheck will pay which bills so I know if I have to stretch my money further in time.
What resources do you use to budget your money?
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i too got a credit card…3 actually. two with a limit of 1,000. and one with a limit of 2,000. When all three got maxed out i freaked and realised that my spending was an issue. I now, do not charge anything on them unless its an absolute emergency. I also try and put atleast 20$ more than the minimum payment. It sucks, but so far the first thing i do when i get a paycheck is pay off bills, then i put 200$ into a checking account (i pertend its for another bill, really its because im saving it up). And then im left with 200$ to do with what i want till the next paycheck, which isnt much, but i realised that paying of credit cards is more important than going out every night.
I keep posting about credit cards, but I really am hesitant to get one. Although I am really good with money now. I got in all of my debt when I was 18 but now that I’m 21 (haha not too much older but older enough) I record everything and really consider ramifications of any over spending.
BTW, the girl in my layout isn’t me (I pretty much wish), but there are photos of me on there, and an explanation in my new post because everyone always thinks it’s me no matter who is in my layout.
Adding you to my Link Exchange, which is under my “Links” page, separate from my blogroll.
I’ve never run into a debt issue (other than student loans), but I just make sure that I pay off the credit card balance each month. I try to use my debit card more, just because I don’t have to worry about another bill.
You know where I am on this. It’s so incredibly frustrating but, once you take responsibility for your actions, I think it’s a lot easier to deal with. And it’s a lesson that is better to learn now than later on in life. Things of how much harder things would be if you had a house and kids and what not.