Thursday, May 22, 2014

as of may 1st.

May 1

Obviously this post is a little late considering it is basically the end of the month but I figure let’s just catch everyone up on where I started. (In my head I sang a little bit of the Drake song “Started from the Bottom”…..started from the bottom, still at the bottom <--- not how the song goes.)

Let me give you a little bit of background on my debt: Before I was financially ready to do so I moved out of my parent’s house and in with a friend. Really I did it to help my friend get out of a crappy situation that she was in with an ex. I had a few hundred dollars on my credit card but that was really it. Well while I was living with her I was slightly careless and didn’t really save much money, I paid what I needed to and then spent the rest going out or doing whatever I did. All of the sudden we were a couple months in and I realized that I had been basically putting everything on my credit card. “Everything” included gas, groceries, nights out, bills… pretty much everything but my rent which I somehow managed to pay for in cash. We ended up getting out of our lease early and my friend let me keep all the deposits that we got back so I was able to pay my card down from around $3,400 to $3,000. I decided that the smart thing to do would be to transfer that balance to an unsecured loan at a credit union with a lower interest rate, which I did. So as of May 1st my balance was $2,793.39 and my interest rate dropped from 19.99% to 7.75%, so I think that’s good. The only problem was that after I transferred that balance I didn’t really stop spending and I once again got my credit card up to (as of May 1st) $1,288.80. Not good! I only have one other credit card that has a balance and that is a Victoria's Secret card that had a balance of $182.70. I also have an auto loan where I work that had a balance of $7,050.09 at the beginning of May. So my total debt was $11,314.98, which combined with my assets (which there weren’t many) made my net worth NEGATIVE $11,200.92.

So I made a little table (it’s down below) of all my debt and my net worth. It’s definitely an eye opener to see it all written down and kinda crazy to see that I’m basically not worth anything!! Since I’ve seen all that I decided to follow the advice of most of the blogs that I read and track my spending to see where all my money was going. It’s been helpful and it really makes me think before I just hand over some money. Of course there are times where I forget to track something and then forgot where the money went which isn’t the ideal situation, but hey, I’m not perfect. Trial and error, y'all.

Summary of debt
May 1, 2014
Loan:                                     Balance:                               Payment:
Auto                                       7,050.09                                 135 (bi-weekly)
Credit Union                           2793.39                                   49.31
Discover Card                         1288.80                                   35
Victoria's Secret                      182.70                                    25
My net worth as of May 1, 2014

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