Let's Talk about Debt!

I know it’s been a while since I’ve been active on here but lately I’ve had a lot on my mind.

Here’s an update on my life since the last time I posted over a year ago!

1. I got a full time job working for the state government where I live.
2. I moved out of my mom’s house into my own apartment with my awesome boyfriend.
3. I bought a new car.
4. I got into some debt.

OK so now that you’re somewhat up to speed on what I’ve been up to, let’s talk about my debt free journey.

One of my main focuses now is paying off all my debt (credit card, vehicle and student loans). I’m starting to not be ashamed of talking about finances because I think every twenty something in America is going to mess up with money at some point or another. I’m really glad that I’m learning these things at the age of 24 rather than the age of 54. I don’t regret moving out of home or buying my new car or going into the debt with credit cards because it is all a part of the learning curve of adulthood. I’ve been thinking of somethings to do in order to generate some more income to throw at the debt and the one thing that I’ve chosen to do is pick up a second job.

My total debt is about $55,000. Most is from student loan debt, the next highest is my vehicle loan and the last is the credit card debt. My gross pay from work is $30,000 but after Uncle Sam gets his share I may be bringing home about $20,000 maybe more if I work over time at work. At my job, overtime doesn’t rake in the amount of money I need to make a dent in my debt which leads me to why I decided on working a part time job.

I decided that I should pick up a part-time job because I want to be debt free in the next three years. No more Credit Cards, Sallie Mae or Vehicle loan. I wanted to be able to pay off the debt and still save roughly about 15 percent of my take home pay for savings. I also use the extra overtime money for Christmas gifts. I did think about looking for a higher paying job but I wanted to stay at my job for a little while before getting a new job. I don’t want to look like a job hopper.

I feel as though American’s attitude towards debt is that is that it’s a normal part of American life. I hate it honestly. Everything here is on credit in this country and it’s turning into an epidemic!

Here’s the reasons that motivated me to start my debt free journey:

1. Debt feels like a dark cloud is always hanging over my head. I can’t sleep at night because of it sometimes.

2. I want my money to be MY MONEY. Besides rent and other living expenses, I do not want to owe anyone a dime.

3. I’m thinking about what could happen in the long term. If I have debt and go through a rough patch and lose my job, my credit would be ruined and I would have to file for bankruptcy.

4. I want to become a millionaire one day. I’ve come to realization that I cannot net worth if I have debt. When you work out your debt to income ratio, you have to be in the black and not the red.

Well, I’m happy to be back to updating on here. Hopefully someone will be able to relate to what I have going on and maybe you’ll be encouraged to get a handle on your money. If you’re currently on a debt free journey, go ahead and leave a comment below. Until next time (which will hopefully be next week). Peace.