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Goodbye LASIK eye debt January 1, 2010

Posted by gmbmfb in : debt, health care , 7comments

Well, earlier today I sent in my first and only payment for my LASIK eye surgery. I was very lucky to have gotten approved for a 12-month 0% interest loan. Although, if I had to do it differently, I would have saved up the money and paid for it in cash. As most of you remember, I decided to get it done with the 0% interest loan because I thought we were going traveling, and if any complications were to occur, I wanted ample time to get corrective surgery before we left for our trip. But how was I to know that we would end up putting our trip on hold …

Still, the LASIK surgery changed my life. I can’t imagine going back to wearing glasses. My quality of life has improved so much, and I’m so happy that I got it done. In fact, I wish I had gotten it done a long time ago.

Next task is to build up my Savings Fund again …


Don’t buy stuff you can’t afford September 24, 2009

Posted by gmbmfb in : debt , add a comment

According to a story on cbc.ca, Canadians are increasingly racking up debt on credit cards. Which is kind of an obvious statement, given the way the world is today. But it really got me thinking. And then it just got me into a ranting kind of mood.

[ rant ]

I look at my friends who are financing cars, buying condos, buying toys and going on trips – and I often wonder if they can really afford it, or if they’re living beyond their means. I know that some of my friends have good paying jobs, and can afford to live the way that they do. But unfortunately, for the majority of my friends, they’re struggling.

I’ve been with my friends so many times where they’ll bitch and complain about how much debt they’re in and how hard it is to make ends meet. Then a second later, they’ll start bragging about their new hardwood floors, their new PS3, the new car they’re driving, or the hot new restaurant with the $60 entrees. IT DOESN’T MAKE SENSE!

It really bugs me when my friends complain about their debt because they never talk about solutions … they just talk about all of their problems and how hard life is for them. They complain about their ridiculous rent, student loans, the interest rates on their credit cards, how expensive it is to buy things – then they buy it anyway!

Re: ridiculous rent. Rent is SUPER expensive over here on the West Coast. That’s just a given fact. It’s the price you have to pay because everyone wants to be here. If you don’t want to pay such a high amount, either move back in with your parents, find a roommate, or move to Saskatchewan. Otherwise suck it up. Seriously.

Re: student loans. Nobody put a gun to your head and forced you to go to post secondary school. It was a choice that you made on your own. Yes, school is expensive. It’s ridiculously expensive. Yes, in other countries, education is free. But not here, so stop bitching about it. In this country, education is not a right, it’s a privilege. And don’t give me that crap about how you didn’t realize how high your loan payments were going to be afterwards, or that it starts charging you interest even in your grace period. That’s because you didn’t read the paperwork!!! It says it right there.

Re: high credit card interest rates. Clearly if you keep a balance on your credit card, it’s because you’ve purchased something that you cannot afford to buy. If you can’t afford it, don’t buy it. Then you won’t have to pay a cent of interest at all, and it won’t matter what your interest rate is. Just because someone else has bought it and can afford it, doesn’t mean that you can too.

Sometimes I feel like they think that it’s okay for them to be in debt, because everyone around them is also in debt. And if you’re all in it together, then nobody is getting ahead of each other, because everyone is just drowning. Which is a terrible way to think. But it’s like they’re enabling each other to keep on spending and to keep on buying things. And nobody in the group is going to say anything or change their ways, because they all like their fancy cars and their posh dinners and extravagant vacations.

When I was in debt, I was so frustrated. But not at anyone else but myself. It wasn’t the government trying to gouge me, it wasn’t the greedy credit card companies, and it wasn’t great advertising that forced me to buy something. It was entirely my fault for buying things that I couldn’t afford and living beyond my means.

And it’s not like I can say anything to them. I’ve tried in every way possible. But all I get is flack for being a “penny pincher” or the one in the group who chases the dollar signs. And that’s why I’m here! That’s why I have this blog.

So basically what I’m trying to say is that I just wish my friends would take responsibility for their debt, instead of complaining about it all the livelong day.

[ / RANT ]


Adding debt to the sidebar May 5, 2009

Posted by gmbmfb in : debt, sidebar totals , 1 comment so far

There was a good question raised about my debt: should I list my LASIK eye surgery debt on my sidebar and in my NetworthIQ? My original thought was that since I wasn’t making payments and no interest was accruing, I wouldn’t list it up there. But now that I think about it, debt is debt, and in the end I’m in the hole $2,900 – regardless of the timing of payments or interest rate. What do you think?

Oh, and I also reduced my car value in my NetworthIQ down to $3,400.


What would you rather talk about? August 6, 2008

Posted by gmbmfb in : debt , 1 comment so far

It still surprises me how personal finance and money is still such a taboo topic. Perhaps it’s because, over the past few years, I’ve been reading and surrounding myself with people who don’t find it uncomfortable to talk about money (mostly people with PF blogs).

CBC just posted an article called Money talk taboo for Canadians compared to love, politics, religion. That just completely blows me away. Even before I started this blog, I would have much rather talked about how much debt I had, instead of my political views, or my love life.

But it’s healthy to talk about all of those things, and when we talk to each other about things that we’re uncomfortable with, not only do we gain knowledge and insight, but we gain a greater understanding about how our peers operate. It becomes easier to understand why we do the things that we do, and it becomes easier to figure out what choices are the best for us.


A post about relationships and debt May 23, 2008

Posted by gmbmfb in : debt, relationship , add a comment

I once worked with a guy who was in debt. I was still in school, so I was in debt too. We would sometimes talk about our debt, and how we were dealing with it. He had maxed out his line of credit, so in order to avoid paying down the debt, whenever he got paid, he would dump his entire pay cheque into the LOC, and then take it right back out again – thereby making it seem as if he had made a payment. It seemed like a sneaky little plan, so I did that for a while too. Actually, probably until I graduated college. So, for about a year I would just transfer money back and forth from my accounts, and coasted along … spending more and more, and getting deeper and deeper into debt.

Nobody knew that I did that. My family had no idea, and I didn’t tell any of my friends. I didn’t even tell the guy who told me about it. I just did it. I mean, I knew people in debt were doing the same thing as me, and for some reason it didn’t make me feel as bad. I remember lying to my mom about how much I owed on my LOC (she was the co-signer). I remember even telling my ex-BF that I didn’t carry a balance on my credit cards. But I did. And that was 5 or 6 months into the relationship.

The point is, nobody knew I was in debt. I mean, they knew I had student loans, but not the maxed out credit cards or the maxed out LOC. It’s easy to hide debt, because you can’t tell just by looking at that person what their net worth is, or how much they owe the credit card companies. And because of that, it makes it so easy to ignore the debt.

Even now, because I’m so open with this blog, you all know exactly how much I have, down to the penny. But if you saw me, and were just to make an assumption of me, you couldn’t tell how much money I was worth. If I saw a person like myself wearing my standard articles of clothing – hoodie, jeans, converse skate shoes … I’d probably guess that person lives pay cheque-to-pay cheque, and that they may or may not have a hard time making ends meet.

And then I look at BF. And I have no clue what his financial situation is. I mean, I know the basics. I know approximately how much he makes. I know he pays for everything in cash or with his debit card. I know he made a lot of money on a piece of property he owned a few years ago. I know that over the past few months, he’s been spending more than he earns, because he’s been buying hiking gear like nobody’s business (for the trip that he’s currently on). I know his car loan has a high interest rate due to him not taking care of his finances when he was younger. I can relate to that, because I was there too. But other than that? No clue. Absolutely no idea. I don’t even have a ballpark figure about how much he has. Part of me really wants to know, but another part of me doesn’t even want to go there. It’s a touchy subject, and it’s something I always avoided talking about in past relationships. It’s just that with this blog, I can’t exactly turtle and hide from any of it anymore.

I don’t really know what this post is about, and I feel like the point of this all is right around the corner … but I haven’t quite put my finger on it yet. It’s driving me insane. I’ll have to get back to you.


Debbie is $57,000 in debt, and needs advice … August 2, 2007

Posted by gmbmfb in : debt, miscellaneous, motivation , add a comment
I got an e-mail from a reader a few days ago, asking for advice in her current financial situation. With her permission, I’m reposting her e-mail in the hopes that my readers can offer some words of encouragement, and maybe some thoughts/advice about her current situation. :)
Hi Krystal,

I am so glad to have found someone who was/is in the same boat as me. Well, my boat is sinking fast, I think – my debt is pretty bad.

This is what happened and how I am coping. A year and a bit ago, I decided to start working on a project that makes me extremely happy but requires funding to accomplish what I set out to do. I borrowed money from a family member to get it going, in hopes that funding would pull through in some shape or form. I also charged lots of expenses to my 2 credit cards and took out extra on a loan. For over a year, I’ve been filling out application forms for funding and/or trying to get sponsorship opportunities, with no luck.

I had people involved in the project who believed in it, but in the end, I was the one taking the risks, I quit my job at one point and worked on it for 4 months, without an income. I even had this one partner say “borrow as much as you can and I’ll get you the money you need,” he ended up pulling out 6 months ago and brought no money to the project.

I’m back to work now and have been struggling to keep up with the calls from the creditors. It’s terribly upsetting when after, a long stressful day at work, there are people calling and demanding to be paid or they are taking me to court. I have only paid off a tiny bit of what I owe my family member and she has even emailed me because she wants to discuss my inability to pay her back. It’s bogging me down and I definitely don’t want to disappoint her, and I definitely don’t want to be sued. I continue to believe in this project but I have to put it all on hold until I sort my terrible mess.

I had gone to a credit counsellor about 8 months ago – they said I could declare bankruptcy – but of course – that’s 7 years of hell! I don’t feel that I want to write off my debt, I have to take responsibility. Also, they said that since I owe money to that family member, that I would have to declare bankruptcy with her as well – NOT an option! The other option is the consumer letter, which is a 45 day process to get creditors to agree to let you pay off a percentage of what you owe. This will only affect my credit for 3 to 4 years. But the credit counsellor has to know everything that is going on with your finances… ugh.

This is what it looks like in terms of what I owe. It’s a lot, so please don’t judge!

$25,000 (family member)
$2,000 (small personal loans)
$11,000 (credit cards)
$7,000 (Citi loan)
$12,000 (student loans)
$550/month (rent)

My salary is $50,000/year. I don’t know what to do, I figure I can catch up in a month or two, after the personal loans are cleared but the creditors are riding me, constantly.

Oh yeah, it’s not that I’m being wasteful either. I have been biking to work to save on bus fare, I try to get groceries so I don’t go out for lunch at work, and I don’t lavish myself with material things.

Do you have any advice for me?

I’m a mess right now, I can barely stay focussed.

Thanks,

Debbie Debt

My response:
Debbie, I know what it feels like to have creditors breathing down your neck. I think you are very mature wanting to own up to your debt and take responsibility for your actions. That’s a huge step to take, and you’ve already done it!

First thing’s first, I think you should sit down with that family member and work out a repayment schedule. Show her that you are responsible and you want to work this out! Debt to family can get ugly, but just keep the lines of communication open, and I know she’ll appreciate it. Maybe you could offer to pay her X amount until you’ve cleared away some of your other debts. And then you can re-visit the amount you’re paying her and think about bumping up the payment amounts after a while.

If you want those creditors to stop hounding you, perhaps the best thing to do is go through debt consolidation – where you speak with a credit counselor and they roll all your debt (minus the personal debt to your family) into one lump sum, generally with a lower interest rate. The creditors will stop hounding you, and you only need to make one payment to the credit counselor, instead of to each individual account. I don’t know your entire financial situation, and I am not an expert in the topic of credit consolidation, but this might be a good option for you.

If you don’t want to get a consolidation, or that’s not really an option for you, there are other ways. Dave Ramsey’s “snowball” method has been blogged about to death. That’s where you pay your smallest debt first, and them when you’ve paid it off, you apply that amount to your next smallest debt, and so on. It’s supposed to give you a mental boost to see that you are in fact making a difference towards your debt. I personally prefer the method of paying down your debt which has the highest interest rate first. Mathematically speaking, that’s the best route to go. But it’ll only work if you can keep your motivation up and not get discouraged along the way.

Your rent is fairly cheap, and you make a decent salary, so I know you can do this! If you find you’re cutting it too close, maybe you can take on a part-time job? I found that extra $200-300/month to be just what I needed to pad my monthly income. The debt looks really intimidating at first, but you can’t let it consume your life. I think that once you get on a debt repayment schedule, life will be so much easier for you to handle.

For me, when I was going through a similar situation, I found the beginning process to be the most stressful – figuring out what the heck I was going to do, and cementing a plan to help get myself out of the situation. Once I really sat down and analyzed it (and after the initial freak-out), I took a step back from it all and realized that I could do it. It was going to be hard, but it was my own fault I was in the situation to begin with, so I was prepared for it. Along the way, I read a ton of other PF blogs to gain inspiration from, and that got me started on making my own. I think it would be wonderful for you to start your own PF blog (if you haven’t already), to keep yourself accountable for your spending. I would love to keep updated on your progress to becoming debt free. It’s nice to get words of encouragement from people who understand where you’re coming from.

I’ve never been in a position to give much advice before on debt, so I hope I’ve helped in some way, Debbie. If any of my readers out there have any advice for Debbie, please take the time to leave a comment. I’m sure most of us can relate to her story in one way or another.


GMBMFB was featured on We Beat Debt! July 17, 2007

Posted by gmbmfb in : blog, debt, motivation , add a comment

I am both surprised and honoured to find out I’m the first debt-free success story featured on the brand new website, We Beat Debt!

We Beat Debt! was created with the intention to inspire people who have debt in their lives with real-life stories of people who were able to climb out of their debt. As well, they will focus on personal finance tips and tricks, and the occasional book review.

I think We Beat Debt! is going to help a lot of people find the motivation to tackle their own personal debt. They are always looking for new inspiration, so if you have a good success story to tell, you can submit your story to them!


Am I being too harsh? May 16, 2007

Posted by gmbmfb in : debt, student loans , add a comment

The past few days, I’ve been reading a message board about Canadian student loans. Basically, the hundreds of people who have joined this message board want the Canadian government (i.e. the tax payers) to pay off all outstanding student loans. They are starting a petition, and contacting politicians, etc. To me, this under minds all the hard work it took to pay off my stupid loans, and all the hard work all my classmates are going through right now, trying to pay back what they owe.

Yes, I understand that life happens, and sometimes your financial situation changes along with it. But student loans are a luxury offered by the government to people who can’t afford to pay for their education up front. It’s like a 0% interest credit card for the duration of your schooling, and that’s pretty generous in my opinion. If someone racked up their Visa, and then at the end of the month, realized they couldn’t pay it off, is Visa just going to relieve them of their debt? No. They don’t care about life. They care about their money. So why should the government be any different when it comes to loaning us money?

And a lot of people don’t even know what student loans really are when they apply for them. A lot of the people were angry because they didn’t realize that after graduating, interest would still accrue during their 6-month grace period. Some didn’t even realize how big their monthly payments were going to be. And we all know those people who spend their student loans on alcohol, a new TV, a vacation, etc. Sure, most aren’t like that, but some are.

I empathize with the grads who weren’t able to get a job right away, or who have to support a family. I really do. A lot of my friends are in the same situation, and it’s hard for them. But at the same time, I don’t want my tax dollars going to erasing their debt just because they aren’t able to pay off their loans. It may be selfish, but isn’t it also selfish to want the country’s tax payers to pay for what they spent? Maybe they should have evaluated whether they were willing to sacrifice it all after graduation in order to pay the loans off.

There are a ton of ways to pinch pennies and make it work (as I’ve found over the months, by reading all of your PF blogs), but a lot of them just don’t want their lifestyle to change because they’ve gotten comfortable. They don’t want a strict budget to follow. Or maybe they’re overwhelmed. Move home if you have to. Clip coupons, get rid of the car, move to a city with a lower cost of living! Just do something … because complaining isn’t going to make the debt go away any faster. Well, it might if by some miracle the government decided to erase the country’s student loan debt. And while it may be great for those students who do get their debt erased, I’m sure it’ll piss off the thousands and thousands of grads who have already paid off their loans.

And I’m not just spouting off here because I have my loans paid off. I’ve always felt this way. I’d love to get my B.A. right now, but I can’t afford being $20k in debt again, so I’ll wait a few years and save up so I don’t have to take out huge loans. It has always annoyed me to see all the student protests at Parliament, wanting the government to get rid of their debt. They knew how much their education was going to cost them before they started school, so why are they so upset? Yes, tuition is ridiculously high, but what are you going to do? In North American culture, post secondary education is a privilege, not a right. And until the government changes their attitude, that’s just the way it’s going to be.

The bottom line is: complain all you want about paying back your student loans. Those payments suck! The system sucks! DEBT SUCKS! It’s all true! But at the end of the day, just pay the loans back and stop trying to score a free ride from the Canadian tax payers.

Maybe I’m being insensitive, but I just think debt is debt, no matter who you owe money to. What do you think? Am I a complete asshole?