After our bankruptcy was discharged, I thought we were through with financial irresponsibility. We had two paid off cars, and no debt except a 40 year 7.5% mortgage of $130,000. On a house what once was worth $125,000, now was valued at $65,000. We said we would never go back to the way it was.
Our road started off with a bang, I decided I wanted a new car. I was tired of driving the small Chevy Aero, and wanted something bigger. By then my husband had gone back to work, so we had the income for a car payment. So I thought. Because we were so close after our discharge, the bank loan came back at 18%. Yet idiot me took it. Thankfully, I got our credit union to refinance it at 3.75 within 6 months.
The credit card debt kinda of snuck up on me. Again our local credit union started me off small, and kept raising the credit limit for me. I just kept spending and spending. Sometimes, it was for luxuries that we really didn’t need, but other times, it was for the necessities that we needed. We again were living outside our means.
Last summer, my husband and I decided to move closer to our jobs and to a better school district for our girls. I took 6 months, but I found a house that is 2 miles from my job, 10 minutes from my husbands job, and a much better school district. It was a for sale by owner, and what we considered a perfect fit. I’m not proud to say this, but I promised to be 100% honest, so I will admit, we walked away from the old house with the 40 year mortgage. We were allowed to as the debt was discharged in our bankruptcy. We convinced the owner of the current house to do a lease to purchase, and moved in the beginning of February . We are paying her 5% APR (she holds the note) and have a refinance deadline of November 2019. Yes this stresses me out.
A few weeks ago, I finally hit rock bottom. I had convinced my local credit union to do a debt consolidation on some of our credit cards. I swore I would cut them up, and start living like a responsible adult. I failed. Two of the cards lowered my credit limit so they are not as high, but the rest are right back where they were. I am very ashamed to find myself in such a low place again however this time its different.We are not walking away from one red cent of what we owe. We can and we will pay down our debt. It won’t be easy, in fact, I’m sure its going to be very hard. But for the 1st time, my husband and I are on the same page, and there are no secrets.
The future is now. We are cutting everything we can to have more to throw at debt. I am working on a post explaining our income and expenses. We are signed up to start Dave Ramsey’s class in the middle of September through our local habitat for humanity. I’m excited because at the same time we have our class, they are also holding a kids class that follows Dave’s class for kids. Hopefully, that will give our girls the foundation to be smarter with money then their parents are. Its something I wish I had as a kid.
Thats our full financial story. Like I said, I am working on an income and expenses post that I am sure everyone will help me whittle down. I do promise to be 100% truthful in my posts, and I have thick skin to read the responses to them.