So...today, I feel a bit exposed to the world. Paula shared that "do we have to tell people where we are at financially?" I answered, that we need to be honest and open and in a format that will hold us accountable.
Maybe, we should make a movie? You know like Jon and Kate + 8...this one would be Kenny and Paula + debt.
I feel exposed, and a bit overwhelmed. I should see the glass half full...not empty. That we can get out of debt sooner than later.
I was given a few suggestions:
websites...
www.thriftyfun.com (I found it pretty busy...too much info all over the place)
www.gailvazoxlade.com (she has some good info, I recommend this site. She clearly looks at things from a secular stand, but gives good advice to rid oneself of debt, and gives good advice on investing and what is good and what is bad).
Cut up credit cards...we have them out of our wallets...put away.
Pay cash...we use interact...but will look at switching over to rid ourselves of even the interact card.
Someone suggested a home-stay person from University. That would be great, but until we can afford to renovate and have another bathroom, and room for them, it is highly unlikely that we can do this. Ideally we have the space (basement room, but is has only one window...we'd want another one put in, and also, a bathroom in the basement). So that doesn't help us much, unless we have someone we know stay with us and pay rent for a while.
So that option is really not so good, though we would love to do that.
Today, it's just one of those days of reality, hitting home. That we are in a wee bit of a mess, and need to get out of it.
We are doing okay in terms of extra spending. This is kind of like fasting. I realize that I have shopped to give me comfort, even if it is just something for the house, or extra food, we don't need...it's about comfort, rather than about need. So it is now looking at our needs, rather than our comfort so to speak. We need to realize our comfort comes from God, who in turn gives us peace.
I need to trust God...to put this in His hands...and trust him...with everything.
It just sometimes sounds too good to be true.
Kenny
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First let me say you have really got me thinking, between the debt elimination post and then being so honest and authentic. I think that the fact you were even able to get your url says something... I mean you think that would already be taken.
ReplyDeleteYou probably know this already but with the level of credit card debt you have you are spending a lot of money just to pay interest. If you were able to get the interest down you would save a lot that you could put towards actually paying it off. If your credit card rate is 19.5% you would save $2500 if you could get it down to even 6%. That's a totally doable rate right now. You don't necessarily have to go the consolodation route, you can use a credit line to give you more flexibility. Just ask the bank to keep reducing the limit as you pay it off... Just a thought.
Thanks, we will look into this...very seriously.
ReplyDeleteThanks Misty for your encouragement...and great advice.
Kenny,
ReplyDeleteAnother thing came to mind today. I noticed that you listed the mortgage as part of your debt. While I agree that it is also debt, it is debt against an appreciating asset, and I think that puts it in a different class than say credit or other forms of consumer debt. It doesn't make sense to treat them with the same sense of urgency, and I don't think that having a mortgage is a sign of poor stewardship, particularly if you can make the payments. Just a thought, and something to think about...thinking of the mortgage as a different kind of debt will also give you smaller goals to reach for, which will be attainable, and thus motivating.
Hi Kenny,
ReplyDeleteWe miss you. Thanks for sharing this blog with us. Your transparency is a God-sent encouragement to us as we all walk this road. I wanted to echo Misty's comment to get rid of the highest interest debt first. I sent a very dear and trusted Christian couple who work to help others to be free from debt and to be good stewards over their finances, so don't be surprised if Steven or Jasmine begin posting comments on your blog in the near future.
Katherine & John
Thanks for the comments.
ReplyDeleteI have heard that the mortgage is good debt. I can see that...but we have a 40 year mortgage, which is not good. In a year, we paid just around $1,000.00 on the principle and the rest interest. I realize this is quite normal, yet over 40 years!?! We realize that once the 5 years is up (term) that we will need to put together a different strategy.
Lots to think about...pray about...believe God in.