I Hate Debt: Sneak Peek into Our Debt

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debt

I’ve been thinking a lot about our debt lately, mostly how much I hate debt and how helpless I feel right now about getting rid of it. Broken down, it goes a little something like this:

Loan

Amount

My Student Loans $9,230.17
Wifey’s Student Loans $4,794.74
Auto Loan $4,027.69
Chiropractic $2,640.00
Computer $540.83
My Dad $500.00
Total $21,733.43

I’m not digging it.

The $14k in student loans is luckily just a little more than half the national average, but it’s still $14k more than I want to have. And sure, there may be people that see those numbers and think, “Well they’ve got no credit card debt, so what’s the big deal?!” Well, we’ve got debt. That’s the big deal. No matter how you paint it, it’s a crisis and needs to be addressed ASAP.

Student Loans

Our student loans are relatively low because I worked full-time during my single college years and we both had scholarships and grants, at least until I stopped caring about school and they stopped giving me scholarships. We also had a bunch of medical expenses during school for Mrs. Wealth Gospel because of a car accident and all the back and neck problems that ensued.

Auto Loan

We bought the car a year and a half ago because one of ours was burning oil like crazy and I was tired of pouring in new oil every other day. That just reminded me of the story of the people I ended up selling that POS to. That’ll make a good future blog post :)

Chiropractic

The chiropractic is actually due to my in-laws because my wife needed to have some serious therapy done at the beginning of this year and we couldn’t afford to pay for the up-front charge. It’s a no-interest loan, which is nice, but I hate owing family money.

Computer

The computer loan is through the bank I work and doesn’t charge interest, and our old laptop died the death, so we needed a new one. I accidentally set it in an unstable spot the day we got it and it fell off and hit the ground pretty hard. I almost died. But as far as I know, it’s still running like a champ.

My Dad

The loan from my dad was back in June when I had been unemployed six months and we were finally to the end of our rope with our savings. We initially tried to avoid it, because like I said, I hate owing family money, but it got to a point where we had no choice.

And since we’re still trying to get back on our feet with Mrs. Wealth Gospel’s salary not kicking in until August and my meager wages as a bank teller not really doing much good, our debt payoff is going pretty slow. We’ve started building our emergency fund again this month, but that means that money’s not going toward debt.

Oh, and I just checked on the student loan payment I made on the wifey’s student loans (mine come due next month) and our only $1.87 of our payment went to principal. I don’t even know what to say about that. I’m just angry.

Something needs to change

And, of course, this quote by J. Reuben Clark doesn’t help, but getting the crap scared out of you is good with this kind of thing :)

Interest never sleeps nor sickens nor dies; it never goes to the hospital; it works on Sundays and holidays; it never takes a vacation; it never visits nor travels; it takes no pleasure; it is never laid off work nor discharged from employment; it never works on reduced hours; it never has short crops nor droughts; it never pays taxes; it buys no food; it wears no clothes; it is unhoused and without home and so has no repairs, no replacements, no shingling, plumbing, painting, or whitewashing; it has neither wife, children, father, mother, nor kinfolk to watch over and care for; it has no expense of living; it has neither weddings nor births nor deaths; it has no love, no sympathy; it is as hard and soulless as a granite cliff. Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you.

In fact, if that doesn’t terrify you, you’ve got something wrong with you. It’s hard to not be complacent about debt sometimes; especially when you have so many other things you have to worry about. For example, for me it’s finding a better job; making sure the move doesn’t drain our bank account; getting enough time to work on the blog to get it to the point where I can start monetizing it; getting all our crap unpacked in the new house (which is taking far too long for my taste); all the stupid medical expenses that keep popping up; helping my wife do some grading because she’s even MORE stressed out about teacher deadlines she has coming up. There’s definitely a feeling of lack of control going on up in here.

So it looks like the Mrs. and I are going to be having some good chats over the weekend. I can already think of a few expenses we can shave down a little bit so we can tackle this a little better. We’ll have to see what else we can do with it.

I hate debt. How do you feel about it? What do you think I should do? I’m interested in your suggestions. 

(photo cred)

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Posted in Debt, Personal permalink

About Ben Luthi

Ben Luthi is a personal finance blogger who is passionate about helping people to stop conforming to society's views of personal finance and to align their behaviors with their goals. His loves chips and salsa and his spirit animal is Warren Buffett.

Comments

I Hate Debt: Sneak Peek into Our Debt14 Comments

  1. Nobody wants to be indebted to anyone whether family member or not. Almost always, payments are hard to do because the expenses on a day to day basis don't stop yet there's still the monthly bills to take care of. The sad thing about it though is that much as people hate debts, it looks like it can't be helped in a situation where the expenses are mostly higher than the salaries so what is one supposed to do? I am still discovering the path towards absolute freedom from debts but once I find it, I would definitely be sharing it not only to you but to many people out there who are in the same predicament.
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    • It's true! There's definitely not just one size fits all approach, especially for people whose income is lacking. I work with a girl who has at least triple what we have and she makes as much as I do. It's hard to tell that person to just suck it up and cut your expenses when the income isn't there.

    • Mmm I like the short term goals, and getting an action plan is too important! We've been living off of those loans for so long now without having to pay them that all of the sudden it's like, "Oh yeah, those." lol

  2. Sounds painful! One thing that i know i always have as a backup in case i need to make more money is this website here https://www.writersdomain.net/

    They will pay for content that you write: $3 to $3.30 per article. Get 10 articles done in an hour? $30 – $33 dollars. I believe they let you make up to $3000 dollars a month, but don't quote me on it.

    While it's not the most entertaining of work (in fact it can be very draining to type and think so quickly!) it pays very well! my brother can do 15 an hour… I'll let you do the math there

    Good luck!

    • Holy cow 15 an hour?! How long are his articles? I'll have to check that out. I get some income from writing personal finance articles, but most of that goes to promoting this site.

  3. One thing that I have done is a debt consolidation loan. Taking all things into one payment. You could even look at refinancing your car so you can keep a very low interest rate. If you have enough equity on your car, refinance it, pay off your other debt (computer, dad, chrio) and then you can work on one payment with your student loans. Once your car is paid off, your only focus is your student loan if you keep yourself disciplined :)

    • Thanks for the suggestion! We haven't looked into debt consolidation because the government rates are so low, but I'll make sure to look into it! The car is about 12 years old so it doesn't have a lot of equity, and our rate is 2.99% so I'm not sure how much lower we would be able to go on that :) But it's always good to look at all the options!

  4. Start with the smallest one first and when it is paid off add that amount to the payment on the next lowest payment. You would be surprised how fast they can get paid off and there is a psychological effect when you see each one paid off. It helps keep you going!

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