Wednesday, January 20, 2021

The Beginning of my Debt Free Journey

Coming to Terms with my Credit Card Debt

I didn't get my first credit card until I was 22. My parents advised me to go to the bank and sign up for one so that I could start building credit. Their suggestion was that I use it to fill up my gas tank and then pay it off at the end of the month.

So that's what I did.

But then I started realizing that charging things was easy. And it made my life easier. Whenever I needed to buy something really expensive, I would put it on my bank card and slowly pay it off. For some reason, interest wasn't on my mind, nor was it something that really bothered me at that point in my life.

From there it just started piling up. 

Right before I turned 27, I bought my first house. My mortgage loan officer went over everything with me and he had to run multiple credit score requests during the process. Even he said that  he would prefer that I use the extra money I was putting toward my down payment toward paying off my credit card (Which was only about $2,000 at the time) but I chose not to. Not because I thought I knew better or anything, but because it didn't seem like that big of a deal.

I would pay it off soon, I told myself.

But I didn't. 

Instead of focusing on paying off my bank card, I opened more credit cards. Not with the intent of spending, but because I was shopping at The Gap (Not the actual store lol I figured I would keep what credit cards I have private) and they told me that if I opened a card I would get 15% off my total purchase.

I'm a sucker for a discount.

And then the same thing happened at another department store.

I'm serious. I like discounts way too much, you guys.

So there you have it. I've had quite a few store credit cards over the years, but many of them have closed due to lack of activity.

Now there are 3 cards that I have and actively use.

Why?

There are a couple of reasons for that and the main reasons is overspending. I keep one card on my Amazon account which is a big no-no I've learned. It makes it way too easy to spend without thinking.

Another reason is that I spend too much money on food. I don't pay attention to my grocery bill and because I'm not really meal planning, I'm often not enthused by my meals and get takeout instead.

These are not things that I am proud of. But this blog is a place for me to get honest and real about my personal finances.

2021 is going to be the year that I pay off my debt and start saving even more for the future. I want to build a good life for myself. I want to be able to buy a house someday that has a yard where my dog Hazel can run around and play.

I don't know. Haha. But it's important to have goals, and as silly as it sounds, that is one of mine.

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Thanks for stopping by and reading this blog post. Let me know if you comments how far you are in your debt free journey. What are you hoping to accomplish in 2021?

xo Marian

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