by Ryan Reid
Member since:
October 5, 2008

At War With My Debt: Downhill From Here

January 24, 2013 10:37 PM UTC
views: 0 | 8 people recommend this | comments: 35

It has been a long while since i last posted about my war with debt. And i am happy to report that the battle is nearing an end.

Just as many Americans were out racking up their credit cards this holiday season i made my final credit card payment! I now officially have NO credit card debt. and coming from somewhere around $17,000 about 5 years back...that feels great to say. Even with long unemployment stints and many...many setbacks i was able to pull it off.

I also paid off a large debt to Social Security. They were sending Noah checks, we said we thought they were wrong...they said no. We called numerous times doubting them... and then one day we get a letter saying "pay us back!" So, we did. And now all that remains is a few medical bills and Katie's car.

The medical bills just got cut literally in half just today due to an old account i forgot about for medical expenses. so we only owe about 1600 there...maybe less. and then about 7500 on the car. Not ideal...but still WAY better than i was even a year ago today. Not to mention i only pay about $200 interest each year on the car anyway (awesome auto loan)

 

So while i still have some things to pay off. i am no longer paying interest out the wazoo. well...aside from the mortgage...but that is a whole other battle that i plan on fighting next.

 

It just feels amazing to finally be on the winning side of the field, where i'm not losing money each month because of my debts. With the coming year i should be free from all but my home. I am finally starting to feel that all those cuts i made, all the struggling, all that work was worth it. And i am only halfway to my reward.

 

I'M WINNING FOR ONCE!

Comments: 35

Janet "Jax" B. Jan 24, 2013, 10:41pm UTC
So lucky....I feel like we're getting deeper and deeper. Pher's eye surgery will set us back a bit...and I'm still paying the Mayo Clinic for his treatment and biopsy there. The more I try to pay down the more I feel like I'm losing.
Ryan Reid Jan 24, 2013, 10:48pm UTC
While luck is a part of anything we do, i don't think much of this was luck....lol. I have had pretty much Sh** for luck the last year...the biggest thing that saved us is setting up that emergency fund. Kept me from borrowing again. but it was hard to set that up in the first place. That and the fact that medical bills don't charge interest...and being persistent with the insurance company.
Nora D. Jan 24, 2013, 10:42pm UTC
Ryan, that is absolutely wonderful!!!!!!!!!! Isn't that a fantastic feeling, though? I need to get more serious about paying off a few credit cards.....haven't been as good as I should have been about getting them paid down/off but I'm really working on them now. It does take a lot of perseverance, and you surely have had it. a huge CONGRATS TO YOU!!!!
Ryan Reid Jan 24, 2013, 10:49pm UTC
Thank you Nora, I still have big plans for the future. This is all just the beginning. But it feels good to be winning for a change. And glad to see the fruits of all the work i put into it.
Pamela Marks Jan 24, 2013, 10:53pm UTC
That is wonderful news we are still working on ours
Karen E. Jan 24, 2013, 10:58pm UTC
What a wonderful feeling Ryan!!! Keep this up! :)
Rebecca P. Jan 24, 2013, 11:42pm UTC
Congrats, that's great news! Getting out of debt can be hard, but you've done awesome! I've never had credit card debt, but I do have student loans I'm working on. Ugh!
Ryan Reid Jan 24, 2013, 11:49pm UTC
You are smarter (and therefore better off) than a lot of us! I was foolish when i was younger with money. But i learned A LOT along the way. I guess thats just how i learn lol.
dee b. Jan 25, 2013, 2:26am UTC
It shows it can be done. Determination is key! Despite having virtually every bill go up, and losing hours in work, I still managed to pay off at least two bills. I was hell bent on doing it. Not bad considering I make a few cents over minimum wage, and travel 80 miles a day to do so. It may have taken some juggling, but the end results are well worth it! If not for having to pay with a credit card for heat, I would have been somewhere with that. But come tax time, that will be paid back. It will just set me back a few months before I can get back on a roll. Providing something else doesn't come along to set me back too.
I know how good it can feel, to pay off a debt. It shows hard work, and juggling have been worth it. Congrats Ryan!
Ryan Reid Jan 25, 2013, 11:57am UTC
Thank you Dee. I'm not going to lie, i had a good summer of work this year and that realllllly helped in all of this. But my biggest accomplishment wasn't making that money. It was not going out and spending it right away! There are still plenty of things i "want" and i could have bought and been "happy" with them for a bit. But i know being debt free will make me much happier in the end.

It's a bummer that our brains are wired to go for the instant gratification over the long term. Sometimes we just have to be smarter than we actually are lol
dee b. Jan 25, 2013, 6:07pm UTC
Being in control of your finances, takes constraint, and looking ahead. You have a good head on your shoulders, and for one of your years, that is very commendable. There will always be things we desire. But living within your means, is more important, and brings you closer to your goal. Meeting your desires one day, can only have a chance of happening if you don't allow yourself, to get so behind the wayside, that they will truly only be a dream. Keep up the good work. People like you show it's possible!
Bernard C. Jan 25, 2013, 5:02am UTC
Good luck with reaching your goals :-)
Amanda P. Jan 25, 2013, 7:35am UTC
Congratulations to you.. it gives one a very odd sense of accomplishment when you pay off an old bill like that.
Mandy Douglas Jan 25, 2013, 8:01am UTC
Congrats! You have shown a great example that it’s possible to get out of debt despite all the difficulties. I think that the most important is to have a right motivation and believe in yourself. Unfortunately, lots of people in the US have the same problem, they put all their expenses on plastic and realize that they are completely in debt only when the situation is already extremely complicated. To eliminate the debt it’s necessary to want to change your attitude to managing finances and understand that your life should be better than it is. To get out debt it’s necessary to cut expenses and focus on your goal, avoid using credit cards, instant loans and other lending services in case you have made a decision to change your life.
Rachel D. Jan 25, 2013, 9:41am UTC
Congratulations! When I divorced my husband, he had racked up over $20,000 in credit card debt, and we had no savings, no home, no cars. It took me 2 years of living like a bum to get rid of the debt, but ever since then, I've refused to use credit cards. Having no debt is just AWESOME.
Ryan Reid Jan 25, 2013, 11:54am UTC
I am really working towards being FULLY debt free. (house/cars) but i am just taking a moment to be happy where i am today.

It sounds like you have the right mindset on all of this. Suffer for a short while now to prosper later.
Truth Always Jan 25, 2013, 9:46am UTC
You have done really good. You sound so responsible... its hard to do this in these tough times...
Susan G. Jan 25, 2013, 1:21pm UTC
I commend you for the success of your efforts. I know it wasn't easy at all but you did it anyhow!

It's easy enough to pay down your mortgage faster by making double payments. While that sounds like a scary, huge amount it really isn't. Mortgage bill come in three parts, interest, escrow, and balance. The balance part is what you pay double on. That's how we paid off our mortgage way back when.

Debt free is great. It takes so much less to live on when you aren't making payments all over the place. All that interest is semi-wasted money that you can put to better uses.
Ryan Reid Jan 25, 2013, 1:53pm UTC
You are right about the extra payments. I did the math last night and if i just put the car payment amount towards the mortgage it will save us $40,000 and almost 12 years off the loan....I think i could go for 12 years without a mortgage!
Susan G. Jan 25, 2013, 2:08pm UTC
Sounds like a plan!
Betty S. Jan 25, 2013, 2:50pm UTC
Congratulations on getting your debts under control.i know this is a good feeling..
Michelle Ayers Jan 25, 2013, 6:53pm UTC
great job!
Kenneth B. Jan 25, 2013, 8:29pm UTC
Good for you. I had been doing good, but my wife needs some oral sugery with $6K out of pocket so far and need almost $3k next month.
Regina R. Jan 27, 2013, 12:30pm UTC
oh dear Ryan I am so glad to read that. What a wonderful success to begin the year with. I just cant understand SSI sending these checks for Noah when you doubted them multiple times......sigh........ hope you wont have to pay back too much now......
Ryan Reid Jan 27, 2013, 1:04pm UTC
We sent them all of our paperwork, earnings, all that TWICE. called when i went back to work, and when katie went back to work after he was born. and then they tell us that "you said you had no income" WHAT???

but...i guess its all over now. I paid it all back. and i guess it was a nice little loan at the worst part of our financial lives...so i guess it's not all bad. even if they did jerk us around a bit.
Regina R. Jan 27, 2013, 1:45pm UTC
if you paid it back already so theres nothing to worry about and i am glad about this....... but I still cant understand when you sent them everything they did not really proof things.....
Ryan Reid Jan 27, 2013, 1:52pm UTC
The American "safety net" is so difficult to navigate that it makes it basically useless. Noah still qualifies for Medicaid due to his condition, but i chose to just get my own insurance for him...its just not worth the trouble and i will do anything i can to avoid dealing with them.
Regina R. Jan 27, 2013, 4:13pm UTC
thats a very wise decision hope it wont be too expensive to get your own insurance........
Neil S. Jan 27, 2013, 3:48pm UTC
Ryan, your doing great. When your finished with car paymemts and only have a house payment, you will see the world is a little brighter. Here is a trick I used to bring down the house payment term. My payment is due on the 1st of the month, and I pay it then. Now, on the 2nd or 3rd I pay whatever I can (whatever I have extra) and it all ends up coming off the balance. So next month on the 1st the balance is less and the amount of interest going to the bank is less. The payment is the same but because the balance is less the interest is less each month than it would have been.

But, you are doing real, real good. Congrats to you.
Ms Lee P. Jan 27, 2013, 5:09pm UTC
I'm debt free and I know that it is indeed a great feeling. It took me longer than it's taking you to get debt free but it can certainly be done. I'm rooting for you.
Ryan Reid Jan 27, 2013, 5:25pm UTC
It has been a long road so far but I am on the right track now, and even if i'm only halfway there...thats way better than where i was before! Thanks for commenting Ms Lee!
Adelaide M. Jan 28, 2013, 7:45pm UTC
Thanks for posting to Point Taken. Have a great night!
Len Maxwell Feb 1, 2013, 4:37pm UTC
I'm proud of your effort. I remember your older posts showing how much you owed and how much you could pay. I'm so glad you finally got to this point. Just don't let it build up again.
Ryan Reid Feb 1, 2013, 6:36pm UTC
I cut up all my cards back when i started this. So since i had proven i cant be trusted i just removed the option lol.
Katie R. Feb 7, 2013, 3:46pm UTC
Bet it feels great to be taking control of all that money back

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