Never did I think I’d be pushing my late thirties with the amount of debt I currently juggle. Now I can thank my Sophie Sue and her expensive brain radiation treatments at Cooper City Animal Medical Center for finally bringing it all to a head (excuse the pun).
Sitting in the parking lot waiting for her treatment to conclude last Friday I finally experienced the epiphany I required: Making more money is NOT going to solve my problem as fast as sorting out my debt will. Not when I send big cash to the credit card companies every month only to find myself still treading water the next.
That’s why I spent the full four hours of my standard Sophie-vigil surfing the Web and calling credit-counseling firms. By the time it was all over, late afternoon, I’d had all my debt consolidated into one monthly payment at a fraction of the interest rate I’d been paying.
A satisfying crunch of plastic under kitchen shears concluded the day’s torrid business as tiny squares of my credit cards fluttered to the floor at my feet. I danced on them briefly before scooping them up, resolved to create something masterful, collage-style, with the shards.
So you know, I used to have a spending problem. That period of maximum irresponsibility ended about five years ago. Since then I’ve been suffering the ignominy of a credit card balance I’ve been unable to pay down due to randomly escalating interest rates on all this unsecured debt.
Never a late payment. Always more than the minimums. But the total always hovered too close to the maximum mark, more so after the double whammy of Sophie’s crisis (landing me back in the at-the-limit red zone) and the steep interest rate hike that followed (clearly the result of an “if-we-can-we-will” attitude on the part of the banks).
So now that I’m down to 6% I’ll be paid off in far less time than it’s taken me to try to whittle it down on my own after amassing the debt in the first place. I’ve also deferred my student loan payments for the first time since leaving school (a humane alternative available to those with this kind of secured debt). And I’ve cut out a few remaining random expenses on my monthly roster. Best of all, I’m lowering my tax burden by restructuring how I get paid and legally challenging my recent (huge!) property tax hike.
After this vet hospital parking lot experience, it’s clear to me that expensive veterinary care can be extra-rewarding:
The impetus to change based on the need to be truly financially responsible for my own animals (despite my possession of a vet degree)…telling.
A new-found sense of how a little financial restructuring (done in less than eight hours) can go a long way…enlightening.
A dog that will likely live another year of comfortable life despite her brain tumor…priceless.
Add Comment11 Comments
Dr. Khuly - I seldom comment, despite daily visits to this site.
But I had to thank you for this post. With a son applying to vet school who thinks that any amount of debt is "No problem! - I'll make BIG money once I graduate"... your words have already been copied and pasted to him.
Secondly - It does my heart good to see folks willing to sacrifice on behalf of a non-human family member. As the email contact for a local rescue organization, I get far too many emails saying (in brief), "I don't want my dog anymore - will y'all come get him?" Reading of your efforts on behalf of Sophie Sue remind me not too become too cynical, at least not yet.
Thanks!!
Mike August 11th, 2008 12:29:00 PM
Congrats on Sophie's journey to recovery (and conquering your debt in the meantime)! If you have a chance, I recommend you check out "The Total Money Makeover" by Dave Ramsey. I'm partway into his process right now, and I'm seeing the light at the end of the tunnel!
Best of luck!
Jenny August 11th, 2008 12:56:00 PM
Good for you! I did the same thing about 14 years ago, and although there have been brief periods of spending-more-than-I-should I've never fallen back into the debt pit. And it feels soooooo good. There will be some tough times ahead but it will be so worth it! And once you have all that paid off, it's like getting a BIG raise! :-)
However, I AM very curious about why you were "Sitting in the parking lot waiting for her treatment to conclude" in Miami in August!!!!! Weren't you cooking? It's making me sweat just to think about it :-)
Barb August 11th, 2008 12:57:00 PM
I have also learned that it it's not about how much you make, it's about how much you spend.
You have to decide how you spend it, is it going to be on interest payments on those nice easy to get credit cards or do we actually, heaven for bid "save" the money for what we need or want.
I know you can't do that when you are standing at the counter at the vet's office with a sick dog, but for many things in life we can choose to wait for things a little longer. People tend to think they can't save money but if you can make a credit card payment every month even if it is the min payment, you can consolidate, cut the cards up, pay it off and then start saving. It does work.
Good luck Dr. Patty!
Elizabeth - from Nova Scotia August 11th, 2008 01:08:00 PM
Dr Khuly,
First, congrats on recognizing that cash/ debt management is key, no matter what you make.
That said, a word of advice - make sure you follow up with your credit card companies to ensure they receive the paperwork from the credit counseling agency AND (more importantly) that they accept the terms you were offered. I have heard stories of people who contacted the credit counseling agency, thought things were fine, and only later found out that the terms weren't acceptable, credit agency wasn't paying on time, etc. So, it's vitally important to make sure everything gets set up. Additionally, the terms may not get adjusted in time for the next payment cycle; so, check the timing with your credit card companies.
There are plenty of good credit counseling agencies out there who do good work, but your peace of mind is far too important to not follow-up. Not trying to scare you - just trying to make sure you get the outcome you are hoping for. Good luck! : )
Posey August 11th, 2008 07:39:00 PM
Oh, geez, Dr. K, just when I'd finally convinced myself that a quarter million in debt at age 40 would somehow work itself out, and that I really should go to vet school! :) Still going, though.
Good for you for cutting up your credit cards! And may I make a suggestion? I know you don't want to advertise with Google ads on your site, seeing as how you can't control the content, but I don't think it would be too much of an imposition for your readers if you were to put other sorts of ads on the site.
For example, you've recommended a number of books and products, clearly because you like them, and not because you are being paid to endorse them... but if you're recommending them anyway, you might as well make a little something off 'em. I, for one, would be much happier purchasing a book you recommended if I knew you were making a little money from the sale. So next time you link to, say, amazon.com in a post, why not have that link be an affiliate link? How many Furminators have you sold for the Furminator people?!?!? You deserve a little bit for all those referrals, and anyone who reads your blog regularly knows you aren't in it for the $$.
Speaking of which, why don't you have a donate button anywhere on the site? Better act quickly, before I am a quarter million in debt and can't donate anymore! :)
LaShelle August 11th, 2008 09:20:00 PM
Congrats and good luck. There has been lots of action against dishonest credit counseling companies. Search "credit counseling fraud" here are a couple links:
http://www.ftc.gov/opa/2004/03/credittestimony.sht...
http://www.irs.gov/pub/irs-tege/eotopica04.pdf
Erich Riesenberg August 12th, 2008 06:02:00 AM
Thanks for all the advice. I was worried about using a credit counseling firm because I had heard of scams and less scrupulous companies making big $ while scamming unsuspecting consumers. That's why I went with a company both my major credit cards agreed to work with in advance. But I'm still nervous...so I've been following up. Thanks!
On the sponsorships and advertising: When I switch to a new format later this month (Dolittler's bein rewritten) I will have some space for affiliates. I'm also trying hard to get some companies to sponsor me (banners, etc.). Know anyone?
Dr. Patty Khuly August 12th, 2008 08:18:00 AM
Delighted to hear Sophie is doing well!
And it never hurts to ask for stuff, even if you're not sure you'll get it. Lots of stuff is up for negotiations.
CathyA. August 12th, 2008 03:16:00 PM
I vote with Virbac banner. Me too, glad to hear Sophie is coming along nicely. There is a special feeling that goes along with giving a living pet quality time, and also for you to make the most of every minute.
In my 20's, I longed for nice clothes, tableware, & furniture. In my 30's, it was no longer important, but I wanted a nice car & dream house, still unobtainable. In my 40's, I longed for expensive vacations and never had time or money. Now in my 50's, no material things or vacations to exotic places occupy any space in my mind, never bought that dream furniture, dinnerware, or clothes---so what.
Having a few meaningful times spent with good friends, hoping to live and be healthy till retirement, and enjoy the "free" things in life, which are ultimately the best.
Barbara A. Albright/New Hampshire August 13th, 2008 06:21:00 PM
منتديات | القرآن الكريم | المكتبة الاسلامية | فيديو | ماسنجر | مسجات الجوال | ثيمات الجوال | دردشه كتابية العاب | دروس الفوتوشوب | دليل مواقع | التفسير | حواء | الثقافة الجنسية | نكت | دردشة كتابية | موسوعة الطفل | تفسير الاحلام | قصائد مسموعة | مكتبة صور | الطب البديل | احسب وزنك | شات | قروب | توبيكات | تصميم | تصميم مواقع | تصميم منتديات | تصميم استايلات | اشهار مواقع | اشهار | للتصميم الاحترافي | تصميم احترافي | تصاميم مواقع | حماية المواقع | فلاشات | دردشه | دردشة | شات كتابي
dfsd March 23rd, 2009 07:44:46 PM
Add Commment