The Debt That Plagues Us

I have been struggling - no drowning is more accurate - in debt for the past decade, or so it feels like a decade. A sick dog here, a broken down car there, that pizza back in 1998...I am still paying for all of it. In today's economy, I am paying an even higher price considering that APR continues to climb and minimum payments are on the rise. We are on the verge of a credit crisis and I am on the verge of a financial stress meltdown---my situation is not Madoff worthy, but in my little world it may as well be!

I am trying to stay positive because when I stress about money, oddly enough I care less about money, so I spend haphazardly and we all know that $5 here and $10 there ends up being a tremendous mound of debt if not manged properly. I have let go of the hopeless dreams that I will win the lottery - because - let's be honest, chances are I would just charge the lotto tickets if I could.

Debt consumes much of my thoughts during the day. I write budgets down, I try to create a math formula to manipulate the numbers trying desperately to find some feasible way to pay off all my debt before Easter. And every time, I come up with nothing. Because fact separated from fiction, my only choice is to stop the madness of debt and go about it the old fashioned way (contrary to popular belief - that isn't marrying into money).

Here is what I know about paying off debt:

1. Pay more than the minimum balance owed - if you only pay the minimum you end up paying the debt for the rest of your life and when all is said and done you paid the same amount of money that it costs to buy a small island in Fiji.

2. Try to get them to lower your APR - This process is scarier than calling that special stranger you met in the bar last weekend. You sit there with a script in front of you, you practice your lines out loud before making the call and no matter what it always ends up being an awkward conversation. But in the end it's worth it and can have great benefits...translation-it can potentially save you money.

3. Pay off the lowest debt first if possible - so you can eventually pay a lump sum to just one card - contrary to the popular belief that the best way is to pay off the one with the highest interest rate.

4. STOP using the cards - If I followed #4, there would be no blog post about this matter.

5. Try to hold onto sanity - If I was sane there would be no blog post about this matter.

And the most important lesson I have learned is---

NO matter how much money you make it is never enough - I keep thinking that if I just made $20,000 more a year I would be just fine...case and point - I started saying that minus $40,000 ago and I am still saying it. UNLESS you manage your finances and stick to a budget and don't use credit cards to buy things you can't afford, then all the money in the world will NEVER be enough!

I don't have a closet full of expensive clothes or designer purses, but that is no excuse - - even worse - - it's a terrible excuse because all that means is I have nothing to show for my debt but debt itself. The debt has outlasted whatever I have spent it on. Minus my doggy Jack, his health is a big ole' chunk of my debt and he is still alive and well.

What I vow to do:

1- Stop charging - this means no more acupuncture treatments - - which is sad for me because they were really starting to help. It means no more charging that $20 top that I should just wait for the next pay period to go out and buy with cash. It means that when I am broke I am broke and credit can't help sustain me until the next paycheck.

2 - Let go of the dream that I can strip for 2 months to pay it all off because - let's be honest - I am too uncoordinated to walk in Lucite stilettos and black lights are too unforgiving on pale skin. My stripper pole opportunity ship has sailed long ago.

3 - Consider all options - This time I will go beyond consideration of selling my eggs, liver, spleen or kidneys. Body parts aside, there are other areas of spending I can cut. For example, I no longer visit Starbucks daily which has saved me $80 a month - when I first considered it though I was more convinced I could live without my liver than I could without my Starbucks.

4 - Repeat steps 1-3 until all the debt is gone.

I have no idea when I will get to the bottom of my debt but I know there is a bottom and I know I will get there...maybe not by Easter but someday!

More on What I Should Have Asked Santa For

I think it is a good idea to keep a running list of things I want but haven't or cannot buy for myself. I am sure this will be useful for my family and loved ones who I stress out by always responding with a, "I have no idea what I want" when my birthday or Christmas rolls around.

I LOVE to cook and sometimes I want to grill something for dinner but don't want to cook it on the BBQ. Also I sometimes want to make pancakes or lots of french toast and I only have a few pans, none of which are big enough for large foodie jobs. So I want a double burner grill to get the job done! These things not only make cool grill marks on chicken and steaks but could probably make a mean massive helping of french toast too!

I dream of having a big kitchen to put lots of cool cooking gadgets in that I can whip out and whip up lots of delicious things for people. Until then though I don't think there is anything wrong with stockpiling cool kitchen gadgets and stuffing them into my small kitchen...right. My mom tells me the secret to her amazing cheesecakes is all in her mixer. So if I ever have any hope of carrying on the fattening cheesecake baking tradition I am going to need one of these!

My Late Santa List

This Christmas I couldn't think of anything I wanted. I felt like I had everything I needed and was at a loss for coming up with anything my heart desired for the holiday. As luck would have it, it wasn't until AFTEr Christmas that I began to think of all the things I should have asked for...here is my late list to Santa:

1. A bike: I really want a bike to ride around the neighborhood and use to go run quick errands. I can't decide if I want a beach cruiser or a mountain bike but I have narrowed it down to some sort of bicycle with 2 tires...is that redundant?

2. An Ipod docking station: I have been using a laptop or the lame music channels on cable TV but I want something that I can play all my wonderful music on. I have big plans to sit on the couch, listen to music and drink wine.

3. A New Black Pea coat: I have a very pretty white one and an old black one that is so tattered and old it isn't so pretty anymore. I did get a new black jacket for Christmas last year but I hate it. Hate is a strong word I know, but it isn't at all flattering, looks like an old lady housecoat and it has bad juju all over it.

4. A membership to a Krav Maga Studio: I have wanted to do Krav Maga for a long time now. I have a unrelenting desire to be able to be unassuming and dangerous.

5. Art Classes: I love to draw but I haven't ever taken an art class. I think I have the makings of a decent artist but I need someone to help me channel my inner Picasso.

If nothing else I guess I have a very early jump start on my Christmas list for 2009. Thanks Santa! See you next time.