Thursday, June 12, 2008

Personal Finance Tipping Point

Free From Broke inspired me to write about my Personal Finance Tipping Point, thanks for the inspiration!

It was May 2005. At the time, I was suffocating under ~40k in cc debt. In an attempt to save money I had moved into a wretched, dirty, crowded four bedroom house with 6 people living in it (and 7 more in the illegal in-law!). I had been deluding myself for years and living beyond my means. It was only a matter of time before circumstances caused a disaster. I reached the point where I couldnt make the payments on 2 of my credit cards and both went to just beyond 30 days late.

I felt like I was falling into an abyss. I was fortunate to rebound from those missed card payments and catch up. I remember hiding in a conference room at work to make the phone payment on my late cards. I was so relieved, but also terrified at the thought 'what if this mess just snowballed?'

From that point I made the simple vow to stop using credit cards - a cash diet. Of course, I had a few slip ups in the next couple months, but I was on the right track. Its been an uphill battle since then, but I feel an ever increasing sense of freedom as each dollar is repaid.

3 comments:

Free From Broke said...

Thanks for sharing your story!

Mortgage Accelerator said...

Dang... get a hold of those credit cards!!! ;-)

Good luck in paying down the debt.

dollar incense said...

Im working on it! Should be all paid off in less than 3 months :)