Where has all this debt come from?

I’m on a quest to smash the debt I have all -$8634.12 of it.

For some reason just recently I am wanting to tackle this head on.  Later on in this post, I’ll show you what makes up that total, but first I thought I would talk a little about debt and what I think about it and find out about the very first thing I tried to get on hire purchase.

People make dumb mistakes

Everyone is human and no doubt you have paid too much for something in your life, or shock horror you have taken on some debt to get something you couldn’t afford and desperately needed RIGHT NOW*

That’s OK, with all the advertising and marketing going on out in the world, getting bombarded about products and things we need on a daily basis it’s easy to see how people get into trouble.  Everyone’s level of trouble is different and everyone has different circumstances.

Some things are truly for an emergency.  One that hasn’t been planned for in advance.

Look to the Future

At some point, you need to stop dwelling on the past.  YOU CAN’T CHANGE IT

But what you can do is decide.

  • Decide to change your thinking
  • Decide to look into the future
  • Decide to do things differently

These things aren’t easy, and anyone that says it is could be trying to sell you something.

My first attempt at getting into debt

WAY BACK in the day, when cell phones were very new and all you could do was text and ring people, Nokia bought out a tough version of their phone.  From my hazy memory, it looked like this.

It was a great colour, it was tough, it had all the latest features (texting and calling) and it could all be mine for the great price of $700

And for some reason I really wanted it.

So I went through the process of applying for finance to get this shiny new piece of technology and was politely turned down.  I was pretty gutted.

It probably had something to do with my non-existent credit rating and also I was earning very little money at my new job.

But never fear, later on I managed to get debt for all sorts of great things:

  • Other mobiles
  • Cars
  • Electronics
  • Debt consolidation
  • + More I can’t remember

I should state now that I have never ever missed a payment, it might have been for the minimum amount for the month, but still I have never missed a payment.

What is my current debt made up of?

I’m glad you asked, it’s made up from 3 different sources

  • Mastercard = -$800
  • GEM Visa = -$1785.97
  • First Credit Union Loan =-$6048.15

A quick breakdown of what this debt got me is as follows:

Mastercard has been used for small purchases from food to random things from China and everything else in between.

GEM Visa has been used to get my current camera and lens which I initially got for taking photos at Giant Pumpkin events.  And a scooter.

First Credit Union Loan has been used to get me a desktop PC to replace my laptop that broke, pay for dental work I needed and a few other bits and pieces like bags and trips.

I’ve laid it all out

So that’s my debt.  I’m comfortable with it, every last sucky dollar of it.

There are many reasons and decisions we get into debt, I’ll admit some of my reasons and decisions haven’t been the best, but I also want to change.  I want to stop paying interest, I want to save money, and eventually I want to be in total control of it.

What about you?

How much debt do you have?  What’s the craziest thing you have purchased on credit?  Or anything else, just leave a comment below, as scary as it seems, it is also freeing to talk about it.

Next post I’m going to cover what my plan is moving forward.

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