Debt Breakdown Part I : Credit Cards

My first 'real' job was at a retail store around Christmas time my first year in college. I had to beg my dad that I NEED a job. I told him that I want to start paying for my own gas (he gave me my first car) and have allowance for school. I don't know why I wanted to grow up so fast... I regret that to this day! I think I just wanted a job because I wanted to be able to buy that things that my friends parents were able to get to them. I remember feeling so exhausted on my first day and kept telling myself that this better be worth it! The pain went away after getting my first check for... dun dun dun.... $300. I felt like a bazillionaire and off to the mall I went... it was gone before the next check came along and the vicious cycle started.

My friend told me that she got approved for a credit card and treated us out for lunch and dinners here and there She was able to buy anything she wanted when we went shopping. I was jealous - I wanted to keep up with he, so I opened my first credit card from Capital One Visa with a $500 limit. Off to the mall I went again and again and again - I probably maxed it out within months of having the card. But not to fret, I was only paying $50/mo for the card and when I paid the minimum for the month I was able to squeeze in a lunch or dinner for $20... then its MAXED out again.

Then I got approved for another visa card for $1000. I have probably opened 3 or 4 more credit cards after that where the limit ranged from $1000-$3000 - all almost maxed out by around the time I got my first full time job out of college. I used to travel a lot with them and the per diem was paid back to us after we do our expense reports (I hate expense reports!). I was on a spending spree - Bought knick kacks as souvenirs, shopped and ate out - A LOT (The only thing that the company reimbursed me for) On top of that, I had a car payment to pay and the lovely student loans kicked in. I was broke! The first job out of college was only paying me $40k and I wanted a way out.

This was when I started to make some changes. The first financial book I read was Robert Kiyosaki "Rich Dad, Poor Dad". I don't remember details from the book at all but   From what I remembered my debt breakdown were approx $46,000

Car Loan	20,000.00*
Student Loan	16,000.00*
Credit Cards	10,000.00*
TOTAL	46,000.00*

How did you get into debt?

Shopping while paying debt

I love bargain hunting. I am so much more delighted getting compliments from my $4 Payless shoes than my Tory Burch flats. I remember finding this lovely dress from a discount store for $25 compared to the $50-70 that Banana Republic goes for (This is with their current 50% off sale). Since, I cant really go out and just shop - I listed here a couple of different ways to shop on a budget.

• Discount Stores/Outlet Stores – I used to work for a discount store. That was probably the start of my obsession for getting bargains on anything. I could not bring myself to buy something in full price when I can get the same item for a much cheaper price. Most of these stores have upped their game by selling a lot more name brands. Also, a lot of higher end retailers also have their version of discount stores like Nordstrom Rack or Last Call by Neiman Marcus.
• Thrift Stores – Once you get an idea of what type of clothing or look you are going for, hunting in a thrift store makes it so much more fun. I have been eyeing a pleated skirt since last year and found it at Buffalo Exchange for under $10 - SCORE!
• Phone Apps – I love these downloadable apps for your phone like Groupon, Retail Me Not, Redbox makes it so much easier to find discounted things on the go and its so much easier and much organized than ME collecting coupons – which I have tried, but end up getting frustrated of all the disorganized pieces of paper that I just end up throwing them away. One day though I will have a $0 purchase on a register… One day!
• Email Lists – I try to keep a separate junk email for stores - I used to sign up for most of them to take advantage of a 10% discount. If you time it correctly and wait until they have a BIG sale, you can totally get the best bargain online. I was able to get this Kate Spade Little Minka Hobo purse for under $150 (retail price is $378.00) from their surprise sale (which I feel like it happens every other month!). Jay gets into these random shopping modes and knows which websites to get the best bargain… I get these random texts like, “What’s your size?” and end up with a really pretty Banana Republic scarf and skirt (Thanks hun!). I think he has better fashion sense than I do – sometimes lol.
• Price Match/Online – This is for the BF… Jay always looks for the best prices for his knick knacks. It varies from his computer parts, Nike shoes, work clothes etc. He was the one who told me about retail stores and price matching. Most electronics store like Best Buy or Frys will price match any items that you can find from competitor stores and for the ladies just an fyi, Nordstrom also does this. 

It’s also good to know what the “price” you are willing to spend on an item. Now that I am on a journey to get my debt paid off – I just closely watch the items that I want and compare prices from different outlet. I am currently on a search for a good/reliable luggage set that I will be using for the trip (my old one is falling apart). I will definitely check out TJ Maxx, Ross, Marshalls for a base price then maybe check online to see the reviews.

With debt repayment – its good to know and do your research to get the best possible price