I grew up in a modest, Christian home with parents who were very conservative with their money. But in 2003, I found myself $40k in debt, with $20k from credit cards alone.
How did I get to that point with such a decent upbringing?
Before I answer that, allow me to start with a disclaimer:
I learned most of the things I want to share from life experiences and others who were successful with their money. I am not a financial professional, nor do I claim to be. So, please take that into consideration if you choose to heed any advice here.
I am hoping that by writing here I can help a few folks out. If I can cause someone to think or make a change for the better, great. I'm happy.
Money is a bit of a taboo subject to write or speak about in our "Minnesota-nice" culture. And, especially debt. When I was faced with my mountain of debt in '03, I felt like it was a near-impossible climb. I was basically job-less and had no savings. I lived in a cramped house with two other guys and was pretty proud of myself with being able to cough up the $300 rent every month.
So, back to the question: How did I ever get to a point where I was $40k in the hole? Unfortunately, I can't blame anyone but myself. Through some very unwise decisions (buying a car well above my means, spending like there was no tomorrow and taking out cash advances) I was able to amass quite the debt-load. It needed to stop. But it sure took awhile before I wised up. The stubborn-nature running through my genes - while useful in surviving Minnesota winters - didn't help much.
When I finally came around, here's what I did: