Letters to the Editor
-
as for freelancing to avoid corporations
I'm not doing this sales job merely because, being an artistic type, I think corporations are evil. I spent 18 years in that corporate world and got 2 months severance because we had been bought a few years before that, so technically "new" employees.
I have so many friends getting laid off right now. Going to the dark side gets you benefits temporarily but there is no security anymore. So I'm trying to make this sales thing work because I feel I can get paid for my hard work. Granted, its more of a job suited to someone who's married and can live off their spouse's income and benefits. I'll be going off COBRA soon and I don't even want to think how bad thats going to suck, as my insurance has always paid for everything, even if I'm paying out the nose for it now on COBRA.
My main concern is that I don't want to blow my whole 401k by the end of the year. I'll need to withdraw some more to pay my taxes I'll inevitably owe from last years withdrawal but I'd like to have a little something left or maybe use it to do the settling.
Believe me, I never before thought this was the right way to handle my problem. Its just that now its the only way. The thought of borrowing money from my rich friends is just too depressing to even contemplate, considering it would have to be a very longterm "gift".
-
RE: My big, fat unpaid credit card bill
A very good article. I loved the part about the ever-mounting eventual cost of an album bought years and years ago. I keep my spending in check by reminding myself that getting 20% off on something isn't such a great deal if you wind up paying for it at a 30% rate!
-
If you CAN pay it back, fine but lots of people are in so deep they can never get out but they resist going bankrupt for far to long
If you get in too deep (and I know EXACTLY how you feel) be rational about what you can do: If it is taking all you have to just tread water you are not going to get out from under it so declare bankruptcy sooner rather than later. You'll have to anyway eventually (unless you win the lottery) and after you do you will really wish you had the money you had wasted trying to pay back an impossible amount of debt.
-
Ignore the jerks, press ahead
As you saw in yourself, Sarah, money and debt bring up a lot of strong emotions that come out in weird ways. I presume that's what's behind a lot of the envy, bitter words, and plain rudeness that is in some of these letters.
Sure, you're luckier than some, but that shouldn't mean you can't own up to your problems. More importantly, I'm sure that your honesty will keep a number of readers from letting their debt get out of control, and encourage others to get help.
Keep plugging away, and let us know when you get back to even.
-
Two things...
1) ...never purchase a depreciating asset on credit: That is pretty much everything except land and gold--two things they are not making much of anymore.
2) go without
You must be able to withstand material deprivation at all costs for it is your desire that is financially killing you .
-
Reality Check
Just to keep things in perspective:
If the majority of the US population starts developing the spending discipline and tight belt the many of the posters (wisely, I most add) describe here, The US "economy" is going to tank. Yes, you heard me.
The motor of the US economy is people living beyond their means.
One of the biggest business in Wall Street is the financial sector, which plainly means deceiving people into buying what they cannot afford, with money they don't have and making them pay dearly the rest of their life. After slavery was abolished, creative forms of servitude had to be invented.
For most of the 20th century the same trick was applied to under develop nations to the point the the creditor (World Bank, IMF) eventually arrogated themselves the power to dictate laws an internal policies: Open your legs to foreign investment honey, it will hurt just a bit. Nations with enough natural resources (oil) that could afford to be disobedient and tell the Lords to take a hike, have to be subdued by more traditional ways (Conquest by an army).
Now the Trade barons look nervously to China, and slyly advice Chinese workers that instead of saving 50% of their salaries, each person now should buy two chevie cars each and stock up in plasma TVs so they can be as free and as happy as Americans are.
Pretty.
-
Debt is relative...
We have friends that are about $30K in debt through poor spending choices and they are an extremely impulsive couple. If one was a nay sayer, they might not be in this situation...but at $30K they don't seem to be stressed out about it.
Some people might think that your debt isn't that much, but it's such a relative thing. I was $4000 in debt a few years ago and it stressed me out to no end until it was paid off. We had just bought our house, then my husband was laid off, then I was almost laid off and had to take a paycut. Then I needed tons of dental work that work benefits wouldn't cover. Every month my pay check went woosh to the dentist and the mortgage.
-
Why Do This To Yourself?
Cut up your cards.
Pay them off.
Don't buy ANYTHING unless you have cash. You'll be amazed how much crap you DON'T buy when you start living this way.
Build up your savings account. You need enough money in the bank to live for 6 months.
Get a debit card... use it for "emergencies" but make you you have money in your checking/savings to cover it.
= = =
Myself, I have exactly one credit card. The right-now balance is $200. It pays itself off every month... It's been on autopay for almost 20 years.
Interest is for suckers.
-
Consumer Credit Counseling Services
Like the author and a number of letter writers, I did the same thing to myself. I over spent, saying I'd just run the cards up this month then pay it off over time. Then the interest rates start creeping up on you. Then you are only making the minimum payments. Then you realize that you will pay on this your whole life and never actually clear those cards.
The best decision I ever made was to call the non profit Consumer Credit Counseling Services (actually a group of non-profits). I worked with one of their staff to make a REAL budget and faced the cold hard truth of life. I don't need and can't afford a bunch of the crap I was buying or things I was doing. The first few months were hard, but now I've re-learned how to live. I am living like an adult now, finally, and facing the difference between want and need. At the five year anniversary of calling CCCS, I will be debt free and my behavior will have changed.