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Started By
Message
Officially debt free today!
Posted on 5/4/21 at 1:28 pm
Posted on 5/4/21 at 1:28 pm
Because of a major life change, a period of depression, a loss of income stream due to COVID, and from burying my head in the sand for 2 years and refusing to crunch the numbers (idiotically maintaining my lifestyle through credit cards), I had racked up a mountain of credit card debt. I numbed myself with weed and distractions, and refused to face reality.
Finally late last year, I got brave enough to face the music (got some counseling, got some medication, got more fit that I've been since high school) and made my new year's resolution to take the steps necessary to become debt free. I sold my investment condo (huge pain in the arse which is partly what had me dragging my feet so long) - closing was last friday and my check cleared this AM. I spent the past 2 hours paying off my credit cards and auto loan and now I am happily debt free. I don't know how I made it so long paying these ridiculous interest rates - I have vowed to never again fall into this trap, no matter the circumstances. I consider myself a bright guy (staying fit into my 40's, grad degree, good career, beautiful girlfriend with a great career of her own, etc) but I just sort of "checked out" and refused to address my biggest issue in life. Feels so good to take care of it.
I am hoping to become more regular on this board and seek out some ways to invest. I'm relatively bearish on the next few years but have an open mind and am looking for some relatively conservative investments. I've done the 401k and all that, even have a nice IRA to boot. I want to swap sports gambling (net loss) for investing wisely (huge net gain historically).
Finally late last year, I got brave enough to face the music (got some counseling, got some medication, got more fit that I've been since high school) and made my new year's resolution to take the steps necessary to become debt free. I sold my investment condo (huge pain in the arse which is partly what had me dragging my feet so long) - closing was last friday and my check cleared this AM. I spent the past 2 hours paying off my credit cards and auto loan and now I am happily debt free. I don't know how I made it so long paying these ridiculous interest rates - I have vowed to never again fall into this trap, no matter the circumstances. I consider myself a bright guy (staying fit into my 40's, grad degree, good career, beautiful girlfriend with a great career of her own, etc) but I just sort of "checked out" and refused to address my biggest issue in life. Feels so good to take care of it.
I am hoping to become more regular on this board and seek out some ways to invest. I'm relatively bearish on the next few years but have an open mind and am looking for some relatively conservative investments. I've done the 401k and all that, even have a nice IRA to boot. I want to swap sports gambling (net loss) for investing wisely (huge net gain historically).
This post was edited on 5/4/21 at 1:35 pm
13
Posted on 5/4/21 at 1:31 pm to SirWinston
Congrats on a fresh start not burdened with bad debt
You did the right thing
You did the right thing
Posted on 5/4/21 at 1:33 pm to Powerman
I used this board for a crucial decision - whether or not to pay off my auto loan (2015 Lexus) and the answer I settled on was "do it". Paid off the remaining $15,000 as my final act - I agree with the mentality that a depreciating asset isn't something you want on the books if you can help it. I didn't have a great interest rate b/c I've been so sloppy over the past few years, so that's what made it an easy decision.
Posted on 5/4/21 at 1:35 pm to SirWinston
Congrats baw! Probably one of the truest feelings of freedom in the world is not owing anyone, and I mean ANYONE, a mother fvcking single red cent.
Posted on 5/4/21 at 1:48 pm to SirWinston
Congrats. That is terrific.
Debt is a tool... it can be used wisely or poorly. It sounds like you were using it poorly (and in some cases, as a last resort).
Now that you have a clean slate, you can focus on investing. And if an opportunity comes up again were you need/would benefit from leverage (such as a great real estate deal), you have the flexibility to do so now.
Debt is a tool... it can be used wisely or poorly. It sounds like you were using it poorly (and in some cases, as a last resort).
Now that you have a clean slate, you can focus on investing. And if an opportunity comes up again were you need/would benefit from leverage (such as a great real estate deal), you have the flexibility to do so now.
Posted on 5/4/21 at 2:04 pm to SirWinston
Congrats man.
I’m dying for the day this huge burden gets lifted off my shoulders .
I’m dying for the day this huge burden gets lifted off my shoulders .
Posted on 5/4/21 at 2:20 pm to SirWinston
Congrats... we are selling an investment home as well..and when it closes, I wii free and clear for the first time since high school. I am 64
Posted on 5/4/21 at 2:57 pm to SirWinston
Wise moves. Congrats on the freedom.
Posted on 5/4/21 at 3:15 pm to SirWinston
quote:
I want to swap sports gambling (net loss) for investing wisely (huge net gain historically).
I like the Reds tonight.
Posted on 5/4/21 at 3:36 pm to SirWinston
quote:
beautiful girlfriend
rules is rules...
Posted on 5/4/21 at 4:05 pm to SirWinston
Fair warning.....I'm about to be a Grinch on this celebration. But I think you need to hear it.
These are great decisions to make. But they are only decisions without actual long-term lifestyle changes.
Don't mistake selling investment property to pay off your credit card debt as being broken of the poor habits that led to your credit card debt. I'm not trying to discourage you, but you will soon be up to your ears in credit card debt again if you think selling your condo is the solution to your overspending problems. And next time you get in trouble, you won't have the backup plan of some property to sell.
You should definitely stop gambling money you don't have, but if you are looking to replace the emotional high you got from gambling with the stock market, you will likely lose more in the market than you lost gambling. Wise investing, as you call it, requires complete detachment of emotion from the process. It's not fun, especially when you lose 30% and know it may take many years of waiting to get it back. Look at the time period of 2000-2013. If you started investing in 2000, you would have gone through a complete roller coaster of gains and losses with no returns besides dividends until after 2013.
I'll be honest with you......I think you are celebrating prematurely. You sound like an alcoholic who thinks he has beaten his addiction because he has made the decision to quit drinking and has not drank in 12 hours.
quote:
Because of a major life change, a period of depression, a loss of income stream due to COVID, and from burying my head in the sand for 2 years and refusing to crunch the numbers (idiotically maintaining my lifestyle through credit cards), I had racked up a mountain of credit card debt. I numbed myself with weed and distractions, and refused to face reality.
Finally late last year, I got brave enough to face the music (got some counseling, got some medication, got more fit that I've been since high school) and made my new year's resolution to take the steps necessary to become debt free.
These are great decisions to make. But they are only decisions without actual long-term lifestyle changes.
quote:
I sold my investment condo (huge pain in the arse which is partly what had me dragging my feet so long) - closing was last friday and my check cleared this AM. I spent the past 2 hours paying off my credit cards and auto loan and now I am happily debt free.
Don't mistake selling investment property to pay off your credit card debt as being broken of the poor habits that led to your credit card debt. I'm not trying to discourage you, but you will soon be up to your ears in credit card debt again if you think selling your condo is the solution to your overspending problems. And next time you get in trouble, you won't have the backup plan of some property to sell.
quote:
I want to swap sports gambling (net loss) for investing wisely (huge net gain historically).
You should definitely stop gambling money you don't have, but if you are looking to replace the emotional high you got from gambling with the stock market, you will likely lose more in the market than you lost gambling. Wise investing, as you call it, requires complete detachment of emotion from the process. It's not fun, especially when you lose 30% and know it may take many years of waiting to get it back. Look at the time period of 2000-2013. If you started investing in 2000, you would have gone through a complete roller coaster of gains and losses with no returns besides dividends until after 2013.
I'll be honest with you......I think you are celebrating prematurely. You sound like an alcoholic who thinks he has beaten his addiction because he has made the decision to quit drinking and has not drank in 12 hours.
This post was edited on 5/4/21 at 4:09 pm
Posted on 5/4/21 at 4:34 pm to MillerLiteTime
quote:
But they are only decisions without actual long-term lifestyle changes.
Valid
quote:
I'll be honest with you......I think you are celebrating prematurely. You sound like an alcoholic who thinks he has beaten his addiction because he has made the decision to quit drinking and has not drank in 12 hours
Alcoholics celebrate being sober for 12 hours. Of course, you have to ensure you don't relapse. But small victories are still victories.
It will be up to the OP to ensure he takes the steps to not fall back into the consumer debt trap.
Posted on 5/4/21 at 4:40 pm to MillerLiteTime
Totally agree with you.
Other changes I've made to support this:
1. Cut dining out expenses from over $700/month to under $200/month (more meals at home and with my bunker freezer I always buy meat on sale). COVID has helped with this, but we're not going back. I am horrified when I think back at the thousands of dollars we blew on $15 appetizers and $14 cocktails that we could make at home. I shudder at the thought of paying $9 for a beer unless it's part of the outing (sitting in a beautiful beer garden soaking up the atmosphere, for example).
2. In process of combing through statements and cancelling ALL auto-rebills (Adobe, ESPN, MLB.tv, Microsoft, Audible, etc). Saved over $100 per month on this
3. No more credit card interest or car note. Over $1000/month in useless interest fees wiped out once we cycle through now. It will be amazing to see my bank account actually grow again.
4. Interviewing for jobs that pay what I was making prior to COVID. I got to the final round twice already but was passed over for other candidates. Once I make it back to where I was, that's a nice jump in my annual salary.
Other changes I've made to support this:
1. Cut dining out expenses from over $700/month to under $200/month (more meals at home and with my bunker freezer I always buy meat on sale). COVID has helped with this, but we're not going back. I am horrified when I think back at the thousands of dollars we blew on $15 appetizers and $14 cocktails that we could make at home. I shudder at the thought of paying $9 for a beer unless it's part of the outing (sitting in a beautiful beer garden soaking up the atmosphere, for example).
2. In process of combing through statements and cancelling ALL auto-rebills (Adobe, ESPN, MLB.tv, Microsoft, Audible, etc). Saved over $100 per month on this
3. No more credit card interest or car note. Over $1000/month in useless interest fees wiped out once we cycle through now. It will be amazing to see my bank account actually grow again.
4. Interviewing for jobs that pay what I was making prior to COVID. I got to the final round twice already but was passed over for other candidates. Once I make it back to where I was, that's a nice jump in my annual salary.
This post was edited on 5/4/21 at 4:46 pm
Posted on 5/4/21 at 4:47 pm to SirWinston
Awesome. Congrats!
Posted on 5/4/21 at 4:53 pm to LSUFanHouston
Edit: OP answered my question about additional sacrifices made besides selling the unwanted condo.
This post was edited on 5/4/21 at 4:55 pm
Posted on 5/4/21 at 4:55 pm to MillerLiteTime
quote:
If I accumulated several years of credit card debt living above my means and then sold my stocks to pay off the debt, would anyone celebrate that as becoming debt free?
If the interest rates on your credit cards were very high? Sure
But obviously you'd need to address your spending to not repeat the same mistakes
Posted on 5/4/21 at 4:56 pm to SirWinston
Congrats man! I think the biggest thing to not go back into debt is to make a budget and stick to it. Without all the payments and interest you were used to paying, you should be able to set a good budget to spend, save, invest, and enjoy.
Posted on 5/4/21 at 8:53 pm to SirWinston
Congrats bro!
It ultimately comes down to discipline. It’s no coincidence that you have also gotten healthy during this time frame. You’ve become more disciplined. Getting healthier physically, mentally, and monetarily can all be boiled down to better discipline. We’re wired to take the easy way out and settle for instant gratification. Can you break out of that cake lifestyle and take care of your body and mind. Do those things and you’ll live longer and happier. Just...don’t be a bitch.
It ultimately comes down to discipline. It’s no coincidence that you have also gotten healthy during this time frame. You’ve become more disciplined. Getting healthier physically, mentally, and monetarily can all be boiled down to better discipline. We’re wired to take the easy way out and settle for instant gratification. Can you break out of that cake lifestyle and take care of your body and mind. Do those things and you’ll live longer and happier. Just...don’t be a bitch.
Posted on 5/5/21 at 4:31 am to SirWinston
quote:
I am hoping to become more regular on this board
Please leave the poliboard version of yourself over there.
Congratulations on the positive changes you have begun making for yourself.
Posted on 5/5/21 at 5:19 am to SirWinston
emergency fund w/ 12 month expenses
IMO there are no real 'conservative' investments that would/could keep up with inflation in this environment. The Fed has fricked everyone with a decade of ~zero interest rate manipulation.
-downvotes are cool
IMO there are no real 'conservative' investments that would/could keep up with inflation in this environment. The Fed has fricked everyone with a decade of ~zero interest rate manipulation.
-downvotes are cool
This post was edited on 5/5/21 at 11:19 am
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