Unfortunately with some life events, I owe around $4,200. I never expected for it to get that high, but things happened and I needed to use it. It doesn't help when you're on a teacher's salary either. I figure I'll pay it off in time. I only use it for emergencies now.
Wow. I guess the baby steps thing is good advice, eh? ima I'd love some info on this process, what you've learned about it, etc. My wife and I are looking to really make some adjustments to our spending.
*arkoe is most fortunate to be in the group that has no credit card debt, car paid off, and rents. Need to learn to save a little more money though.
No CC debt, paid them off awhile back but a lot of student loan debt. I will echo the posters about the wedding. If you're in your early 20's and get married how in the world do you pay for a wedding unless one of the parents steps in and does it for you? Most people I know that age don't have great credit and even if they do couldn't get a loan or a credit card with a $20k limit to pay for a wedding because they haven't been working that long and just don't make that much yet.
Where's the zero option? Sad that everyone has debt on them these days, its why the economy is going down down down down down
I've never owned a credit card. The only debt I have a car note worth about $7k, which is about a grand or two less than what the car is worth. Not so bad, right? Well, that car note is worth more than my savings at this point, so I'm basically in the red. Saving is the #1 thing I'm trying to work on. It's harder than it sounds.
We run money through for "points" (haven't paid for a hotel room in years), but we don't carry a balance. The credit companies likely hate us; some have dropped us.
Its from Dave Ramseys Financial Peace University. Its a class offered at churches and community centers all across the US - I led the class at my church after taking it at another church a few years back - it costs about $100 for the materials (textbook, workbook, envelopes, CD set, etc) per couple. Its completely worth it though - they take you through 7 steps to financial freedom (the baby steps) and its entertaining and very very informative - Covers debt, savings, investments, types of insurance you should have, etc. There was a young couple that went through with us and the husband was in college. Since then (3 years ago) He finished college by paying cash for his last 2yrs of college - paid off his student loans while in college (had a full time job). Paid off all of their debt (cc debt, car loans, student loans etc) and they've just finished saving 6 months worth of living expenses in a money market account. He's 26, she's 24 - they're in great shape for the rest of their life, because now all their doing is investing money for retirement, paying off their house early, and giving and giving. FPU is a great financial strategy for the rest of your life - but you have to make some concessions early on in the process, so you don't have to later in the process - for instance - Although the couple I described can quickly save to buy almost anything they want now...when they first moved in to their home, they sat on lawn furniture in their living room for 6 months until they had enough cash for furniture. But, now they don't have to wait very long at all to buy anything because now they have a LOT more income to use because its no longer going to debt or their emergency fund. They'll buy their next car with cash..it will probably be about 2yrs old..but they won't owe money on it. Heres the deal with this lifestyle...if you lose your job..you aren't in danger of losing anything, going into collections, and you don't have to worry too much..and you can live for six months without a job because you have that cushion. Also, you can buy things you want with cash..no financing & no problems. Plus, if you walk into a furniture store with a lot of cash..you have more bargaining power when the salesman sees the cash. (all I have is this $900 for that $1000 mattress..will you take it?)
I got into pretty bad credit card debt in my early 20s, but luckily my parents helped me out of that hell. Now I make sure to pay it off each and every month, and my credit has gone from horrible to terrific.
I only got my first credit card in my early 30's and have been slowly building up more and more credit with bank loans, two credit cards, and department store Credit (Express, Macy's, Target) I try my best to pay off everything in full and if I can't, I leave about $100-$150 on my balances each month. I also only use certain credit cards for certain things- one card I use strictly for fuel and auto related expenses. the other I use to book travel and build up rewards and double the points, etc...
I have student loan debt but no credit card debt. I'm capable of paying cash for all my needs and I only use my card to build credit. I pay it off every month.
I'm surprised there hasn't been more mention of Dave Ramsey. Usually the man-loving starts immediately in these financial threads.
