As I am writing this I am withing $2oo of having my credit card maxed out due to various factors involving, medical expenses, auto expenses, travel & entertainment, band investments, etc. I will be getting my credit card bill in one week and the interest is going to max out the card.
Up until earlier this year I had never carried a balance on my credit card and I've had my credit card for several years. It was always paid off monthly and I wish that were still the case. However things happen and some necessary things came up as did unnecessary but once in a lifetime opportunities that I should have turned down but didn't because they were once in a lifetime opportunities.
I calculated it out this morning and if I were to make weekly payments equal to more than 35% of my pay, it would take me 26 weeks to pay off. The 26 weeks do not include interest and assume that I will for no reason use my credit card for anything (which is possible but not likely because like I said before, stuff happens). So, it actually is going to be closer to 30 weeks.
I cannot believe the amount of interest that credit card companies charge! I've been working hard at making weekly payments and have not been using my card very often but every time the bill comes I owe a significant amount more than I did the month before. It is ridiculous!
If I knew a few months ago that I was going to get so far in debt I don't know that I would have done things differently but I would have been more careful with my spending. For example I would still have gone to India but I would have really watched my purchases (and I think that I did a pretty good job about being frugal while there except I bought a rug which it turns out doesn't match a single thing in my house and I bought a couple saris which I haven't worn yet and one isn't even the one I paid for so it wasn't really worth it).
With our economy the way that it currently is, I strongly recommend paying attention to what you buy and what you need. It is something that I have had to start doing and it is frustrating but it will pay off in the long run. When I go to the store I have to ask myself if I really need something or if I just want it. If I can't justify a need for it I put it back. It can be really hard sometimes and I occasionally find myself trying to trick myself into thinking I need something but I really don't. Now I am working on ways to get rid of the excess of things I have and trying to figure out creative ways to make money (I may post options of that on here at some point later).
I would highly recommend paying off debt ASAP and make sure you have money in savings so if things do come up you can pay with that rather than using your credit card and racking up interest.
If anyone has any suggestions on how to simplify or how to earn some extra cash on a limited amount of availability I would love to hear about it.
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