Financial Friday: How I Got In Debt

DISCLAIMER: I AM NOT A FINANCIAL ADVISOR OR COACH

My goal is to be out of debt by this time next year. This goal is still feasible but I am not going to stress myself trying to make it happen. I owe $21k in student loans and $10k+ to my bank. So, in essence, I owe over $31k. I know that’s a lot and being that I will be a full time teacher in the fall, it’s manageable. Now, you may be wondering how I plan to get out of debt by this time next year. I will save that for next Friday, but first, let’s talk about how I got in debt.

  1. As for student loans, I mean that’s self explanatory. Many of you reading this have four year degrees of some sort and racked in a surplus of loans. We all know what a pain in the ass they are. I know some of you may have more and some of you may have less. But yeah, being the child of parents who made too much money, I did not receive any free money. My four years in college were borrowed. Originally I owed $26k, but now it’s $21k (interest). I will talk about how I paid that down next Friday.
  2. I got my first credit card in college because I heard that was the thing to do. It was a way to get credit and before I know that having a credit score was BS, I wanted to have a line of credit. My limit was $2500 and I maxed it out quickly and not by going on shopping sprees. Soon as I got the credit card, my car broke down. The A/C went out, my fan broke, I had to replace all four tires. That $2500 went fast and not by choice either. It seems every time you get more money, something always happens to where you have to spend it. Just my luck, my car hated me. I eventually had to get a new one. All that money just wasted.
  3. I got my second credit card a few years after the first because I was working for a nonprofit organization and I could not make ends meet. I was legit struggling. I never made it to my next paycheck without being in the negative. That one maxed out pretty quickly due to more unforeseen events. That limit, too, was $2500. So now I am at $5k that I owe my bank.
  4. I then took out a loan for $2500 from my bank because I worked for another nonprofit, and the last month of my contract, they decided to not pay me and it was two months before I got a paycheck from my next job. I was pissed. I had no money to pay bills, buy food, put gas in my car, nothing. So that put me at $7.5k that I owed my bank. Oh, it gets better.
  5. Remember how I had to get a new car? My old car was paid off and I am so sad that I ended up having to get a new car. So, I had to take out an auto loan to get my new car and that was $9500. That put me at owing my bank $17,000! Yes, all to my bank. I cried a lot because I was like on top of loans, how am I going to swing this?

This is how I got in debt, not by careless spending (that’s how I stayed in debt and still am), but by unforeseen events. I couldn’t help any of my situations. Stay tuned for the next Financial Friday post to see how I now only owe my bank $10k and my loans are now $21k, and how I am paying some of my debts down.

xoxo,

Simply Moniqua

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