Wednesday, September 12, 2012

How to Get Yourself Out of Dumb Debt... I Hope

Confession: I am still a bit swamped in my dumb debt. I have not gotten myself out of it yet, but here I am, proclaiming to the world that I have been an idiot with my finances in the past (and present) and it is high time I gave myself a public shaming.

It would probably make sense if I first explained what I consider to be "dumb debt". I'll start by explaining what I consider to be debt that is (usually) reasonable (there are exceptions to every rule): student loans, car payments, medical bills, and your mortgage. Dumb debt is most everything else.

What Is My "Dumb Debt"?
For me, most of my dumb debt is still related to my early years of "independence" when I got my first credit cards and thought I could get away with paying for most everything with them, including occasional trips across the country with no real purpose. Other forms I've incurred are the "I thought I could afford to pay just that much more extra on this bill, but turns out I can't do math" debt that actually puts you further in the hole than you started. The shit that turns into a truly vicious circle.