I got pregnant, got married, got pregnant again, in that particular order.
And then one day, I woke up from my deep slumber and realized that hey I can't let life run it for me, while I just watch on the bleacher. I have to take control of my life. I cannot just make babies. I had to give them a better life, a better future, probably better than my own.
But of course, you and I know that it's not as easy as that. But sure boy, it helps and it's the start!
Winning every battle begins in the mind. But after conceptualizing it in your mind, you actually have to move your "arse" and work for it. As for me, it always involves, pulling my hair up. Every time I see myself of catch myself, pulling my hair up in a bun, messy or otherwise, It means serious business with a capital letter S.
I woke up sitting on a P200,000 credit card bill. 10 credit cards, that are mostly due and demandable. Me and my husband were rank and files then. We have 2 kids, we are paying for the mortgage of our house. Truth be told, we were getting along just fine. Our biggest loan then was only 20,000 for the equity of our house which we got through Pag-ibig Loan or Home Development Mutual Fund Loan (HDMF). It's a salary loan which our company facilitates. Thus, deductions are being facilitated through my salary every month. My eldest has started nursery at a Private School, we had a Suzuki Multi Cab which my mother in law helped us buy. Looking, I realized we were doing fine, living simply.
There are a lot of attempts from to lure me into getting a credit card, which I said no. But eventually, I acceded when my friend referred me to her agent. It's the annual membership fees that I was afraid of before which the agent told me, I can cancel the card after.
Truth be told, before having a credit card, I don't know why I am so amazed every time, a girl before me presents her credit card as payment. My perception then was, it was a status symbol. You're "it" if you have the plastic. I now know better, recalling my toe curling emotions and relief, every time my credit card transaction is approved after "swiping". This is not to say though that credit card is bad per se because there are really those who knows how to manage their finances. I just realized based on my own experience, that if you are just living paycheck to paycheck, mixing plastic in the picture is a bad idea. For me, it gives a false sense of security, that allows you to buy things even if you have no money. Probably, on another blog entry, I will write about the advantage, but for now, I will just focus on how I got out of debt. Yeah, which is what this blog is all about, but sorry that it's taking me a lot of words in giving you the background. Yes, okay, how I did it: Coming up!
1. I've read a lot of how to get out of debt article
And got what works for with my situation. The internet offers a wide variety of resources. But more importantly, after reading about it, I actually practice it. Sometimes, I fail, then I push myself up again. As they say, practice makes perfect.
2. I stopped using my credit card
I canceled those I can. I took it out of my wallet so next time I go the mall, I don't have it with me. I felt like I am a recovering alcoholic, or Humpty dumpty. Since I don't want to fall, I am not walking over the edge. I have to place myself in a situation that If I'm tempted, I won't because I can't do anything about it, I can't shop because I don't have my credit card with me. It helped that I was not able to discover online shopping then. But now that online shopping is as easy as 1,2,3 – I gave my Debit Card to someone whom I can't easily get it from because of impulse buying, because he knows what I went through, and that is my husband.
3. Cut back on expenses
I look for frugal living websites. I maintained a monthly budget and religiously list down my daily expenses. Enlist my husband and the kids' help by letting them know of the budget. In turn, they will live within the budget as well. If my budget for x item is depleted, don't get/borrow from the other envelope. If it's depleted, it's really zero balance. Wait for the next month to replenish it. Better yet, work within the budget so you don't deplete it. It's a trial and error thing. What's important is the commitment to stick with the budget. In my case, I even had to transfer my children to public school until I regained my footing. I had to endure social pressure – it's part of the learning process it of living with it. Thankfully, I was able to transfer them to the best private school in our city once I was able to zero out my credit card. It was such a fulfillment to be able to do so. If it meant transferring your kids to public school as well, do it. Rather than embarrass them with not being able to pay their tuition or make them line up for promissory note every exam.
4. Negotiate with banks and collections agency.
I did not run away from my obligation. I faced them head on by being humble. Talking, writing letters to bank and haggling. I was honest with them that I can only afford x number of amount per month. Then when another bank will call, I told them, I am still paying off this other bank thus I can spare a dime for them. But they can call me after x number of months when I am okay then I will pay for them. Then sometimes, when we have bonuses from our company, a card company will give sort of a sale – like they will waive a lot of fees, and instead of paying p30,000 due, I only have to pay P5,000 then they will zero out my balance. If I have extra, I avail of those offers. I don't borrow money from other people just to pay it off. I only borrow from family, mother, mother in law – at least they would understand and not charge me interest. Then I pay them back to not destroy my credit score with them. But moms would end up saying, don't pay me back, just give it to my grandchild. I do humbly accept it. Eventually, after I paid off my debts, I buy them gifts, treat them to lunch – in cash – as a way of saying thank you!
5. Shift to debit card.
You need a card to buy plane tickets online and other purchases. I went abroad 4 times already, without a credit card. I only have my debit card. At least I know until how much is my budget. And after vacation, I don't have debts to pay. So if you really need to have a card, have a debit card instead.
No comments:
Post a Comment