get out of debt

Yes sir!

Today is the day I’ve been working towards for the past two and half years.

I’m not exuberant. However, I was giddy two weeks ago when I realized that I was this close.

I am technically free of debt. (TDF) Yes, TDF is the option I ultimately chose. I’ve been waffling on it for several weeks.

My meager savings is equal to my remaining debt.

I could pay it all off if I wanted to – leaving myself penniless and unable to pay any bills if I lose my job tomorrow.

The smarter, saner, more conservative route is to keep paying the monthly bill on my debt and grow my savings at the same time.

In January, my lease will be up, I’ll be truly debt free AND I’ll have about 6 months of savings. Assuming I don’t buy anything big.

So – here we are.

I’m tired.

I could define at least four different “debt free”s.

1. this one. I could pay it off if i wanted to – but I don’t want to leave myself without savings and no pay to pay my bills if I lose my job before the next paycheck.

2. truly debt free. I don’t owe anyone anything.

3. debt free plus have 6 months to a year in savings.

4. number 3 plus I own the place where I live and I am not concerned with meeting my financial obligations for the rest of my life.

Since I meet condition number one – I’m calling this goal done.

$120,000 to 0 in two and a half years.

What an exhausting train wreck that was.

On the other hand, people have filed for bankruptcy in less bad situations than mine.

When I was at my worst: no savings, no credit, no job, and no health insurance – I got early stage breast cancer. I paid for my own mastectomy, I never missed a payment to the hospital, doctors, or credit cards.

I never paid the credit card late even though they increased my interest rate to 33%.

Even though I never paid late, they lowered my credit limit.

None of this matters now.

I’m delighted to be healthy.

I’m here. I’m healthy. I don’t owe anyone anything.

I have no obligations to anyone except myself and my dog.

There’s a big, wide world out there and it’s all mine.

I can do almost anything I want.

How cool is that?

Three more days till pay day!

Pay day! Pay day! Pay day!!!

Pay the rent.

Pay the debt payment.

- and maybe, maybe, maybe pay the remaining balance on my debt.

So close.
So happy!

To hell with TDF (technically debt free).

I want to be debt free for real.

I’m going to pay it all off at once and experience the joy of being debt free!!!!

After all, I’ve been over this a dozen times. Financially, it doesn’t matter a whole lot which way I go. But, if I pay it all off now- then I get to be giddy, dance, and celebrate.

I will graduate to the legions of losers who are living paycheck to paycheck.

Yes, I’ll be debt free but I’ll need that next paycheck to pay my bills.

Hopefully, I won’t remain there for very long and I can start saving again.

Then, my life is really mine again.

So many things that I want that cost money:

- a house
- an airplane
- a car with air conditioning that I don’t fool with constantly and have to add oil to and futz around with on a damn constant basis.

Actually, the car thing will be less of a problem for me when I’m not in such a mess. Then, it will be a source of pride to drive an old car.

Yes, when I can afford to pay cash for a new car and I continue to drive my old one – I’ll be thrilled to do it. When I have to do it – that’s when it’s torture.

FOUR DAYS TO GO!!!!!!!!!!!!!!!!!

I want to do something to celebrate. I don’t know what.

Suggestions?

TDF = Technically Debt Free

That means my meager savings will be equal to my remaining debt.

During this arduous process, I haven’t saved any money because it made no sense when I was hemorrhaging money at 33% interest.

Now, it’s different. My debt is relatively low and for the first time in a long time I’m saving money.

Next Monday will be the crossover point. I’ll have the money to pay it off if I chose to – but I chose not to because I don’t want to leave myself without any savings.

If I continue to pay monthly and save, I’ll be actually debt free in the beginning of January. At that time I’ll have some savings and my lease is up and the end of January.

God how I hate living here.

It’s tempting to move someplace a lot nicer – but remember – I’m essentially re-starting my life and I can’t squander my money on housing. On the other hand, I have to find a way to strike a reasonable balance. I want to love the place I live. I’ve been hating my home for so many years I’ve become used to the feeling and I want to free myself from it.

I need to love the place I live.

More importantly, I need to love what I do. It is, after all, my life.

I’ve hated my job for a long time. Almost since the beginning. I’ve kept it to free myself from debt.

After I’m free, my life is mine again. I can do what I want. I can do whatever I want.

Anything.

Whoo hoo!

Nine more days till I’m technically debt free (TDF). TDF is where savings >= debt.

I’m really looking forward to it.

My job isn’t the most stable thing in the universe; I’m looking for a new one. I’m definitely not going to pay off the whole thing at once and leave myself without any savings.

If I lost my job first thing Monday morning I’d hurry and find a replacement and continue to save and work at my debt payments. Hopefully, there would be no interruption on any payments without resorting to using credit cards.

If, however, I had no savings and lost my job and couldn’t find a replacement fast enough – I’d have to choice but to temporarily live off a credit card.

If the period of unemployment is short and the spending is low, one could argue that functionally there is no difference whatsoever between those two scenarios. And that’s kind of true.

However, at least to me, psychologically the difference is huge.

That’s why I’ve made the choice I’ve made.

As I said in my last message, “My current project is winding up – maybe there won’t be anything for me to do after that. Who knows?”.

Maybe I will lose my job.

The more I think about it, I bet that’s at least a 50/50 deal.

All the more reason to not pay back my debt and leave myself without any savings.

All the more reason to seriously look for a better job.

Sadly, I did not win MegaMillions tonight.

Flip flopper?

Guilty as charged.

When I realized I was a mere two weeks away from being debt free (albeit with no savings) I was elated! I was happier than I’ve been about anything in a very long time.

Well, I’ve flip flopped yet again.

It’s smarter to hang on to my meager savings and continue to pay interest on my remaining debt.

My job doesn’t seem stable.

My boss was just demoted and replaced. He deserved it; he’s a moron.

My current project is winding up – maybe there won’t be anything for me to do after that. Who knows?

Who knows?

It would be foolish to have absolutely no money.

No money at all.

Using credit again in an emergency is not an option.

Taking any job. Any damn job as an interim step would be what would happen no matter what. I’ll do anything for a paycheck before I’ll use a credit cared to pay my bills.

How much reserve? Certainly bills are easier to pay without that giant debt payment – but my life is better with some savings.

Even if it’s a meager savings.

So, I will celebrate being TDF in two weeks! Technically debt free!

My debt will equal my savings.

I’ll keep paying on it each month until it’s gone -but I will have some savings and it will grow every month.

When I’m really debt free – I’ll really celebrate.

I may even do something in the middle. Pay it off early – but don’t leave myself with nothing.

There’s not that much debt left anyway – so the difference between these choices isn’t very much.

Like Columbo always said, “Just one more thing…”.

I am SO not kidding about not having debt again. Ever.

Even when it comes to houses.

I’m looking at a lot; the list price is $1200. I’m also looking at a free trailer on Craigslist. I think it’s about $1000 to move it.

Don’t think I won’t do it.

Think about how fast I can save money when I don’t have a housing expense!

Cool thought, huh?

Think about how fast I can save money with no housing expense and if I fulfill my other goal of doubling my income.

Really cool thought, huh?

....

Now to be fair, it’s late and I’m giddy at the thought of being debt free – don’t hold me to this trailer thing.

Besides, anyplace I could put a trailer would have a horrible commute from any job – unless it was a work at home deal. I wouldn’t want to waste that much of my time with a commute. On the other hand, I prefer a work from home job anyway – with enough travel to be fun but not so much it drives me crazy.

Right now, I think I’m the happiest person in the world. I’m on the verge of being debt free and I don’t have cancer.

Two more weeks. A smidgen more (wait till 8/31) – but whatever.

By next pay day end of the month – I WILL BE DEBT FREE.

I will have ZERO savings – but I will be debt free.

I’ve been back and forth on whether or not to pay early and have no savings v.s. keep saving and make monthly payments. HOWEVER – I’ve been so horrendously in debt for so long – there is NO WAY I can deny myself this joy.

I will pay it all off by 8/31. Oh yes.

God. Finally.

I will be free of debt!!!!!

I will put up with any amount of bullshit at work (from anyone – even that hideous, alcoholic secretary) to have this problem behind me forever.

$120,000 paid back in 2.5 years.

I am exhausted.

FOUR MORE DAYS TILL PAY DAY!!!!!!!!!!!!

Sweet.

That means more money !!!!

How incredibly awesome is that?

Pretty awesome.

I need NONE of it to pay bills. None.

Mine. Mine. Mine. All mine.

Actually – it will go to savings. The first savings I’ve made in years!!!!

My next debt payment is due on Sept-1. I will make the debt payment (and all my other bills) from the next paycheck. (Assuming I don’t quit or get fired before then).

At that point – I will be technically debt free.

What do I mean by “technically debt free”? That means that my savings will be equal to my remaining debt.

However, I’ve decided to not needlessly leave myself open to
a situation. That is, if I lose my job during that window of time before the next paycheck – I’d have no savings and that would be a problem.

If I wait a month – I can accumulate some small bit of savings before it’s time for the next payment. By the end of the following month (October), I’ll have enough money to pay the remaining debt AND (super bonus!) I’ll have TWO – count them TWO months of expenses in savings.

That’s two months of expenses if I’m living like a monk.

It will be a great day for me.

So, Halloween – here we come!!!!!

I should dress up as a monk. :)