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My transition to a healthy relationship with debt

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Transferring card balances to a low interest loan

I’ll preface this post by saying that it is more emotional than rational. Debt can be very emotional! It felt so good to see those credit card balances hit $0. I know that they aren’t paid off, but the interest rates stressed me out so much! Speaking of the line of credit, I hadn’t quite understood the terms of the line of credit balance transfer. It turns out, if you opt for this low fixed rate for one year, you’re locked in for that amount and can’t add any money to the balance for the duration of the term. That’s right – I can’t touch the line of credit other than to make payments for the next year. And to be honest, I am thrilled about that. I haven’t earned the freedom yet, in my own opinion. I appreciate measures to safeguard my finances from myself, because history shows I can be impulsive. So how am I transitioning to a healthy relationship with debt?

My new purchasing and reconciliation workflow

As of Friday, I’m using my rewards Visa for all purchases and transferring the money from my checking account immediately. I had initially planned to transfer the balance weekly, but I’m still struggling with budgeting a bit and don’t want to take any chances with racking up purchases I can’t afford. I intend to give you monthly net worth updates and I’m excited to be able to demonstrate to the readers here that I am paying that Visa off and not carrying a balance. The rewards aren’t all that great, but they add up and I am hoping to be able to cash them in for a gift for someone around Christmas.

Here’s how my recent transactions look on my visa!

A healthy relationship with debt?

It feels different now. I know the stress of living with credit card debt. That feeling of utter stupidity when the credit card statement comes and I’m throwing away $100 of my hard-earned dollars to interest. The stress of running out of money a few days before payday, and realizing I need to use my credit card for foolish things I could have planned for. It’s premature to say I’ve accomplished anything (I haven’t), but I’m proud to say my mindset is noticeably different. I approach purchases completely differently than I ever did before.

I want to be solvent! I’m counting down the days until my net worth hits zero, which is a sort of funny thing to consider. But having a little chunk of savings, and room to breathe in my accounts, all of this is so motivating. It’s pushing me forward to achieve the goals I set in the summer with you, the readers. I’m buoyed by having a plan, and having a contingency plan. Why didn’t I do this years ago? Sigh.

 


Mom Brag Moment

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Had to take a moment and share a mom brag…Princess was featured on the front page of our local newspaper this past week. Her coach chose her as Indian of the week. And he gave glowing recommendation to her skills as the captain of the team and player on her team.

Volleyball Player of the Week

I am so grateful for the wonderful season she has had at her new school. And was taken by surprise when she chose to try out for cheerleader…in fact, I think we were all floored.

But I’m excited to take this moment to announce that my girl will now begin cheerleading practice on Monday. (Volleyball ended this past week.) Thankfully, it is not a competitive team, just a cheer team for the at home basketball games. (She can only participate in JV sports as a transfer student.)

I anticipate no additional costs for this new sport for her. Volleyball cost nothing. And it will not be as intense of a schedule…they only practice 1-2x per week versus 5 times a week. She continues to fight for great grades.I am just so proud of her. And cherish every moment with her as I know it won’t be long until she will spread her wings and leave the nest.