AT LEAST FOR A WHILE.
I won’t lie. Since moving to Colorado, Mike and I have money bleeding from every orifice. I mean SPEWING. I mentioned how I felt that was okay for now, but you can only feel okay about falling thousands back into credit card debt for so long. I know I did this to myself. We have no one to blame. That being said, we haven’t given up on our journey to debt freedom. We just hit a small road block.
This is one of the biggest reasons we have fallen back into a cycle of spending. We threw away a lot of things on this move (not enough though), and we made a pact to buy furniture pieces that better fit our style. Not to mention, we didn’t have a dining room table, a second mattress, or anything for an additional bathroom. Let me tell you – Target knows. They know you can’t resist their big, beautiful “on-sale” towels when you have a new guest bathroom to outfit. They know you can spend $100 without batting an eye.
But enough about that. The point is, we
need want nicer pieces for our new home, and that all costs money. We also had to make some need-based purchases (food, toiletries, admin fees). It all adds up, and we don’t see it stopping anytime soon. We still need/want a dining room table, a media console, a larger tv, some nice area rugs, end tables, and a dresser. The list goes on and on. These are items we’ve been living without for some time now. And my apologies, Target, but we don’t want any more of your furniture…
These items can quickly add up to thousands of dollars if you make informed, thoughtful decisions. They’re not needs, but you can bet I want all of it. RIGHT. NOW. I can wait though. I’m a pro at waiting. I’ve spent my whole life waiting for some particular future moment that always seems to elude me. So we wait.
We Need a Quick Win (or Two).
On to the main point of this post – we need some quick wins. Or should I say, I need some quick wins. I’m feeling a bit discouraged about the whole debt pay-off journey. They said it would happen. I prepared myself for it, though I tried to fend it off for as long as possible. Our last win involved paying off the Chase card. It happened in February, which may seem like last month to you, but it feels like years to me. The number of life changes I went through between then and now is exponential. Therefore, I need some new wins.
Thankfully, military moves have some added benefits. If you have dependents, you are entitled to something called “Dislocation Allowance.” Right now, it’s about $2100. Plus, we’ll receive stipends for our days spent traveling, as well as for gas and some temporary lodging. You also receive money for moving your own things, so that will come into play. I don’t know how much we’ll be receiving or when it will be drop into our account, but I’m hoping it will be enough to pay off at least one large debt.
On the March pay-off report, you’ll see that one credit card has jumped significantly due to moving expenses, etc. I have two options for dealing with this.
- Do I pay it back down to it’s original amount? OR
- Do I take the money we’re given and pay off debts with higher interest rates?
It seems silly to ask this question, but I am torn. Paying off the higher interest rate debts would offer the quick wins I’m looking for, as well as save money in the long run. Yet, I feel defeated every time I look at that particular card’s balance and how high it’s skyrocketed since moving here.
I guess it comes down to SIMPLE MATH. Pay off the high-interest debt, take the quick wins, and be rejuvenated to continue the fight against debt (and lifestyle inflation).
I need your opinion? What would you do?