A few months ago we decided to be completely transparent with our debt. For us it was very difficult because that meant listing every account on which we still owe money. While I was closing the books on April and planning for our May budget/bills, I noticed that we hit a milestone in our finances.
An Embarrassing Financial Milestone
When we first started out trying to actively pay off our debt, the total we owed was over $105,000! When we broke the $100k mark, that was reason to celebrate. Do you know how burdensome it is to carry around a 6-figure debt (with no mortgage or extraneous medical bills)??? It’s not only tough, but it’s actually debt bondage (we are slaves to our lenders – Proverbs 22:7)!
So, while we were happy to now only have 5-figures worth of debt, we knew that any emergency could skyrocket us right back over $100k. Well, I am happy (and somewhat embarrassed) to say that as of the beginning of May 2014, we now owe less than $90,000 in debt!
Do you see why I find this milestone embarrassing? We owe over $89k in debt…that’s more than my gross annual salary!
Don’t get me wrong; we are thrilled to see the number go down and especially to be within a new bracket. Every time we break through a $5k number (105k, 100k, 95k, etc) we get excited and we genuinely are happy to see progress. However, when we focus on the total amount owed – even for a “good” reason such as this – it reminds us of some of the bad or questionable choices that we made (like buying a timeshare on our honeymoon).
Our Current Financial Status
If you’re wondering how we got into this mess, follow this link to find our explanation of each category.
We plan to write another post updating you on the actual amounts of each account, so you can see exactly what we owe in detail. We are still working our debt avalanche, since it is the most sensible and financially efficient way to pay off debt!
Unfortunately, we had to put an expensive car repair on a credit card (we get 0% interest as long as we pay it off in 6 months), and that may take us back over the $90k mark. All of that will be revealed in our May/June financial update, be sure to subscribe to our email lists to get future updates.
- Have you ever experienced a financial event that caused you joy and grief at the same time?
- If you are in debt, do you feel as though you are in bondage to your creditors?
- Do you have things in your life (it doesn’t have to be debt, but it may be) that remind you of past financial mistakes? Do you ever let them get you down?
© 2014, Khaleef “Fat Guy” Crumbley. All rights reserved.