My Journey through Debt: Part 1: The Realization and Immediate Action

I have shared with you my debt story in a previous post. If you missed it, you can go here to catch up. Go ahead. I will wait.

Ok, now that we are all on the same page, I would like to begin to share with you my journey through debt. It will take several posts, but I hope that my story, and my slow climb out of debt, will help others.

The day that I confessed to JP that I had thousands of dollars charged to hidden credit cards, I was filled with dread as well as relief. I had spent so many years hiding this secret, that I was relived that he now knew.

Once the secret was out, the realization of my debt became very real to both of us. I realized that I had not only lied to JP, but had sinned against God as well. I sought forgiveness from both, and it was immediately granted.

While forgiven, I still had the debt looming over me. While JP was forgiving, he did tell me that it was my responsibility to pay it off. I did as any good wife would do. I freaked. As in full blown panic attack.

With percentage rates as high as 22%, I saw no way to EVER pay off my debt. I was hardly able to pay the minimum balance, let alone pay off the principal. I knew I had to act, and act immediately.

My very first course of action was to call the credit card companies and ask for a lower rate on the loans. Yes, I called them loans, for that is what they are. Those companies that give you a little, seemingly harmless, plastic card, are LOANING you money at an EXTREMELY high interest rate.

Most of the companies said they would lower the rate a few points since I was a valued customer. (Of COURSE I was valued! Those guys were making a LOAD of money off of me!)

I then asked if they would forgive any portion of my interest debt. This is a bold move, but they cannot say no unless you ask. Two companies forgave half of my interest debt. That saved me $2000 off the bat.

After getting off the phone with the credit card companies, I found a new credit card. While this seems to be the reverse of what I should have done, stay with me. I found a card with 0% interest on transfer of balances from other cards to their card for a year. A YEAR y’all. So I did it. I transferred as much of my balances to that card as possible. I had a year to pay it off, which gave me a time limit. I also saved thousands of dollars in interest.

As I transferred the cards to the 0% interest card, I closed the accounts. As in, I called them and CLOSED the accounts. They tried to talk me into all sorts of options, but I held firm and closed them. I also cut up every card I still had.

For years I justified why I kept them. “For emergencies. For gasoline. For groceries.” Y’all, if you need to put your gasoline and groceries on a credit card, there is a problem. I know, because I was there. More on that in a later post.

The last thing I immediately did was to STOP SPENDING. Yes, it hurt. Yes, it was hard. Yes, I wanted the new gizmo,the newest fashion, the latest CD, a cup of coffee, a stick of gum. I will not lie to you, I cried. A LOT. I wanted things and I wanted them NOW. I rationalized in my head that I DESERVED things. I worked hard. I owed it to myself. It was my money and I should be able to spend it how I wanted to.  I mean, seriously, that is what the world of marketing tells us, so it must be true, right? RIGHT?!? Wrong.

It wasn’t MY money. It was OUR money, JP’s and mine, and ultimately GOD’S. And I was a dismal failure at being a good steward of it. Every time I failed or pouted, I would seek forgiveness and try again. Everyday that I didn’t spend money was a victory for me. As each day passed, it got easier and easier as I overcame my credit addiction.

My story has many parts. I am not here to judge anyone. I am here to share with you my journey through debt, and how I overcame it to come out victorious.

I invite you to journey with me.

As Thomas Fuller said, “Debt is the worst poverty.”

~Annie