Being honest with yourself about how much debt you have is an important start in order for you to grasp your financial situation. For some reason, people say they don't have any debt, but then they say they have a car loan and a mortgage, have you ever met someone like that? It never makes sense to me, debt is debt! Anyways, here's mine:
- Student Loan Debt: $28,773.65
- Car Loan: $6,600
- Mortgage: $115,238
- Credit Card: $0
Total Debt: 150,611.65
What’s the most expensive thing you have bought with a credit card?
I don't have any credit card debt. I pay off my credit card in full every month. I do charge my vacations every time to my credit card though, just to make my monthly cash flow move more smoothly, but like I said, I pay this off in FULL every month.
Why do you think you made those purchases?
I'm going to change this up a little bit from what she meant by this question, as I have no credit card debt. I'm OK with my student loans, I know that I wouldn't be where I am today without my student loans, but I do have a plan to pay off my student loans completely in 2 to 2.5 years. So I don't think that's too horrible. This does mean monthly payments of around $1,200 for 2 years though, but oh well. I don't want to be paying for my loans for 20 years like some of my friends.
My car loan I am good with also. My car is worth around $10,000 more than I owe, so I think that's good. I do think about selling it though and buying a car that's around $10,000 to eliminate the debt though.
And my mortgage, well I need a place to live. I bought the house in 2009 and got a deal on it, so I'm happy.
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LC says
October 8, 2011 at 8:43 amLove this post, and thanks for linking back to mine.You having zero credit card debt is a huge inspiration to me. And the fact that you bought a home and only have a $115K mortgage… I couldn't even buy a bathroom for that, here!Please get Twitter soon! 🙂
Michelle P says
October 8, 2011 at 8:47 amThanks! And credit cards kind of scare me so that's why I don't have a balance. And yeah, housing is extremely cheap where I live.
Rafiki says
October 9, 2011 at 3:52 pmYou are in a good place financially even though you have debt. You have a plan to tackle it and you took it all on with a plan. Add to that you are happy and everything will be fine. I also like your outlook. Debt is Debt no matter what the reason behind it is.