As the title suggests, there’s something rotten in the state of Texas. Namly my financial well-being. You’ve all heard me gripe about this before but this time I’m getting serious with you. Now, since I’ve moved to Texas I’ve been changing addresses for things like magazines and letters and even bills. Even school loans got the updated address. Apparently it didn’t stick. I got a letter from a collection agency yesterday saying they were trying to find me on behalf of one of my loans and that they demanded payment immediatly. Apparently I’ve not been receiving the bill. Serveral bills to be exact. The amount they claim they need is quite large. I’m a bit scared actually.
Lauren’s been going to this financial seminar (I can’t go because it’s Wednesday evenings before I get off work) for us and we’ve learned about a technique called the debt-snowball. Basically you don’t consolidate anything. You start by paying the minimum payments on everything. You put any extra money towards the smallest bill. After you’ve paid off that smallest bill you don’t consider the money you had been sending now to be free. You roll that payment into the next lowest bill. So, using our own bills here… we’d pay off lauren’s bill for my ring (about $300 I think). Once we’ve paid that off we’d take the $20 we had been spending on it a month and roll that into our next highest bill, my credit card. So, my credit card minimum payment is, let’s say $30, we would now send in $50 a month. When we finish that we apply that $50 to something else. This method gets you two things: first, you pay off you bills, which gets you favorable credit ratings and second, you pay off the larger bills faster. My $20,000 school loan will go much quicker if I’m sending in $400 a month instead of $50. See how that works?
Now comes and interesting question. Do I consolidate? I’m not talking about consolidating everything here, but maybe just the school loans. I have three of them, of various sizes, all of which have a monthly bill of about $50-$75. Then there’s the car and my credit card. I can’t swing those extra amounts each month, at least not right now. My basic concern is that if I consolidate to make it ONE payment of $50 a month, something I can handle, is it worth it if it turns three bills into one large $60,000 bill? That would take 30 years to payoff. But, then again, wouldn’t three smaller loans of equal amounts? It’s so confusing. I’m so stressed about this. I didn’t sleep at all last night and I haven’t been sleeping very much at all. It’s hanging over my head and I feel like I have no peace at all.
I outright refuse to declair bankrupcy. I think it’s wrong. Both on a financial and moral level. I made this hole for myself and I’d like to do the honorable thing and dig myself out. But, then I think about who I’m being honorable to. A group of corporations who don’t care, at all, if I’m alive or dead. They’re a faceless, uncaring group of blood thirsty, money grubbing bean counters. They’re whats wrong with American. They’re keeping the people in poverty and ruining lives. Everyone is judged by their credit report, not their character. That’s fucked up.
So, bankrupcy by 25, debt until 50 or poverty forever. What would you choose?
I’m actually glad I get to talk about this and get a little off my chest. It’s making me sick inside not to be able to talk to anyone about it. I feel physically ill, probably ulsers, and I can’t take it anymore. I don’t know what to do.