$60,000 In Debt

Thursday, May 29, 2014

My friends and I were talking last night about all of our various amounts of debt.  I was actually on the lower end comparatively, but the number was much higher than I wanted it to be.  I mean ALL of our numbers were higher than we wanted, but we all went to college and most of us also went to grad school so none of us were escaping debt free.

I've wanted to start tracking my money better for a while now but the idea of doing that while renting an apartment was a little daunting.  I just worked out the math though and found that my current debt is almost exactly $60k.  A nice round number and the fact that I will be moving home again soon? A perfect time to start this little project! 

It feels a little weird to be sharing all of these numbers with the world, but as I've done with many other things on this blog, I'm hoping some more accountability will keep me on track with my goals.  Also I'm pretty sure that unless you didn't go to college (in the US) or your parent paid for college entirely, my situation is probably not that far from the norm.

Until this past year I had never carried a credit card balance.  I hate the idea of paying to have a balance, but after moving out a  year ago I found it more important to have some money saved up and not pay off my card entirely.  I got a second card to act as a buffer (and it has no interest for a year) so I'm still in pretty good shape.   As I start planning to move back home in August though I'm starting to plan on getting my cards back down to $0 and returning to aggressively paying off my student loans.  I wish I had kept better track of how much I had paid off two years ago, but I can tell you that when I received my tax information this past year that I had paid $6000 in interest on my loans alone.  JUST interest.  Whatever I paid it was a pretty large amount.

What I'm going to do is provide a breakdown each month on how much I've spent, and what my before and after balances are.  It's going to take a while, but it'll be satisfying to see this number creep down bit by bit.

Also it should be noted that this month I accidentally paid my rent twice (don't ask how) but this means I am officially paid through until the end of my lease!

Oh, and a lot of what is on the credit cards are things that I don't normally spend so much money on.  Because Josh and I are trying to cram a years worth of trips, dinners, and ice cream into a few months, my credit card charges have been a little top heavy and will definitely drop off significantly once he leaves.

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