I Used to Be Drowning in Debt July 21, 2006
I used to be drowning in debt and paid hundreds and hundres of dollars (who knows, maybe a thousand?) a year on credit card interest rates. Until one day, it just dawned on me that unless I changed my lifestyle, I would not only be treading in debt but the credit cards would slowly pull me under, until one day, I’ll drown and not be able to come up to gasp for air. I’m not sure what it was, it was just a sudden decision to not spend anymore, not worry about what other people thought of me, not worry about labels on clothing. When you’re young (16-25), what matters to most is what other people think of you and being accepted…and I’m a pretty self confident guy. Now that I’m in my early 30s, I don’t think about how other people look on the surface, but who they are. I hate the idea of “keeping up with the Joneses” because that’s essentially what I was doing when I was young. I tried to keep up with the rich kids who had trust funds and bought expensive meals, went on weekend trips to Vegas, and had supposed high profile jobs.
I spend every extra dollar on credit card payments and it didn’t seem like I was making much progress. When I realized that I was paying down a $1000 on cc payments but just treading, it was time to change. Paying down $1000 and not spending anything got me back and after years and years of almost drowning, I finally was on dry land.
For many Americans who are drowning in debt who are trying to keep up with everyone else around you, stop thinking about how other people judge you. Because the you’re the most important judge of yourself, not the dude who has a BMW 650i with the 18″ rims or the 16 year old whose parents throw their child a $100,000 sweet 16 party who thinks you’re lame because you don’t wear True Religions or own the latest Botkier Bag.
- Posted in : Living Below Your Means, Debt, Money and Relationship
- Author : Kyle
Comments»
Is this some kind of clever reverse-psychology product placement, because now you’ve got me thinking hmmmm, I gotta check out the True Religion jeans and Botkier bags next time I’m a Barney’s.
Thanks a lot dude - Not! You’re supposed to be helping me save, not helping me figure out what to spend money on. Now, I’ll recognize those brands and covet them. Before, I would have been blissfully ignorant.
[…] I think I’m partially crazy for taking on a 30% debt-to-income ratio by buying a home in New York City. But if you read the NY Times article yesterday about people refinancing their mortgages before their adjustable-rate mortgages reset just to to keep their payments the same, I think it’s time to say that a lot of people are just delaying their debt drowning. […]
I don’t endorse any brands! I’m sure True Religion or Botkiers are very nice, but I’m told by my wife that these are the IT items right now. I wouldn’t have known…but I agree, I prefer not to shop, therefore be blissfully ignorant.
I was half kidding, though you did stimulate my curiousity enough to make me go to the links and check out the merchandise. Fortunately, I work to many hours to have time for much shopping and I don’t live or work near Barneys anymore. The real shopping killer, though is vacation. Time on your hands, ample opportunity, and relaxation add up to big time potential to drop bucks on clothes, duty-free watches, booze, you name it.
Anyhow, I agree, that staying out of stores and remaining blissfully ignorant of car, jewelry, and fashion trends is crucial to not buying stuff. Unfortunately, I like to keep up with all those topics.
Miguel, I’m in the same boat. I am surrounded by people who like shopping (wife). Plus it’s interesting to see what’s selling these days. But you’re right, vacations can be a drain on your wallet. Even if you find a cheap flight, all the incidentals add up!
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