Friday, May 15, 2009

Finally out of the red! (well, sort of)

Technically, I am still about $14k in credit card debt, but says my bottom line net worth is a cool $1,300. WOW. I'm chalking this up to a combo meal containing the following:
  • I have been hoarding cash (like a krazy person - yes, krazy with a "k")
  • Greatly reduced spending on my credit cards/spending at all (couponing is now a hobby, it's replaced clothes shopping and mindless eating!)
  • And my 401(k) has been increasing in value with the recent upticks in the market
I should be happy, but I still have all that debt hanging over me.

I've been thinking about taking the (almost) $10k in cash I have and just wiping out the majority of my debt. This scares me because I still haven't had any interviews and don't have any job offers. And I have less than two months to go before I have to jump off the cliff of uncertainty! In a perfect world, I would pay off all of my debt and then go cash-only. However, if I don't have a job(s) lined up for income, then I will end up going back on the credit cards. And if I pay them all off, the card companies may lower my limits or shut down my cards - though I do believe this is better than the alternative: having them jack up the rates while I'm still carrying balances and not having any money to pay them down.

Of all the times in my life, I really wish I had a crystal ball right now. Or at least a Fairy Godmother. I truly can not stand making my own decisions.

1 comment:

  1. I vote for paying the minimums and hoarding cash until the employment situation gets better. Paying interest isn't a good thing, but having a cash cushion is a better way to deal with unemployment than charging daily expenses and then scrambling to find the funds to pay.