Friday, December 3, 2010

Debt Breakdown.

Why am I exposing my finances to the blog world?

Well, I have been stagnant about paying down my debt. I am in the most oppurtune time of my life. I have a job in this economy and very little financial responsibility (when many are juggling rent or mortgage, kids, bills and debt).

After almost two years in this position making almost $40k a year I have barely made a dent in my debt, in fact I've added some on.

At the end of the day I want to set an example for other twenty-somethings that we should live within our means, save for our futures, all the while being grateful for what we have.

So here is the breakdown of my finances:

Chase Rewards CC

*** My regular use credit card to get cash back rewards. I make it my top priority to pay off this credit card in full each ending statement month. I charge gas, groceries, necessities on this. It has a higher balance right now because I charged Christmas gifts on it as well. It is however, a credit card so I added it to my list of debts.
The balance hurts a bit, just proof that when you do use a credit card for everyday purchases, you do tend to spend more in comparison to paying in cash or using your debit card.

Best Buy CC
0% with term expiring in 7/2011

** Best Buy and the wonderful financing options which leads to temptation and buying a snazzy Nikon DSLR camera for my trips. Obviously I didn't have $600+ to drop so I charged it. Note to Self: If you can't pay for the purchase in cash, don't buy it, even if that means 0% financing. Excess, excess, excess!

Citi CC
0% with term expiring 1/2012

** Ouch. This $1210 bill is from a Las Vegas trip this past September. Did I have the time of my life? Yes. Did I make wonderful memories? Yes. But with a $1210 price tag. I actually charged this on a Capital One card I have, but had to do a balance transfer with an introductory 0% rate. Why? Because I couldn't pay the bill in full! And my Capital One card had a rate of 14%! Spent way too much for a 3-day weekend. Shame, shame, shame.

Student Loan 1

Studen Loan 2

Student Loan 3

** And last, but not least my student loans. These I regret the most.

Why the regret you ask? Student loans are for education and to better your future, right? It's available to those many college students who are doing it all on their own and truly need the financial help.

We'll for me, I could have avoided student loans. I was blessed enough to be 100% fully backed financially by my parents. Books, tuition and housing fully funded by my wonderful parents. Mind you, they aren't rich, but they work hard.

I didn't pick a private school and stayed in the California UC/CSU school system. But the 18-year old me took out a few loans anyways. I even had a part-time job all throughout college.

So the bulk of my debt are these student loans.

I feel like an idiot, I feel guilty and I'm here to make it right.

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