We're Officially Participating in the US Credit Crisis

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This post has stuff about a previous relationship. My perspective has changed

Just over a year ago we had paid off all of our debt. Every last cent. No student loans, no car payments. Not even a mortgage payment. We didn’t have any credit cards. What we did have was an awesome credit score, though.

But now we’re in debt. $30,000 in debt. It’s hurting our credit and it’s stressing us out!

How’d we get here?

The short answer is, our business.

Because we had such good scores it was easy to get a big line of credit when we went full time with our new business venture. Over the year we lived off our income from the company alone. Often it had to pay us from the line of credit. We had modest expenses and we took only a meager salary but during that period of time we still managed to accumulate $25,000 worth of debt. Then we panicked and because our credit was still so good we easily got a business credit card for $10,000. We’ve spent about half of that.

But there were some other things that contributed to our financial situation too:

  • Our Used Car Warranty on our PT Cruiser ended and then the transmission went out. That used our entire savings.
  • I bought a motorcycle. Then the motorcycle broke and I had to put a lot of money into it in order to get it working.
  • Poor money management. We’ve spent way too much money eating out.

What next?

Now, like the rest of the country, I’m trying to think of good ways to save, save, save. I have hopes that we can make it another six months and maybe refinance the house to pay off all that high-interest debt and roll it into the cost of our mortgage payment. But we’ll see if that ever comes about.

Mary will likely have to go back to work, or maybe we’ll try and start another business venture, but this time I’d stay at Go Daddy. We’ve tried blogging for money and it’s working okay, but it still isn’t paying for that line of credit. Whatever we do, we’ve got to get started soon.