Advice on making the "Right" decision

All of my life, I have been terrible with money. I'm 24 with about $7,500 in credit card debt.(through various cards, I want to at least get rid of the smaller balances, with the remaining being about 5,000) Paying that off and staying up to date with car insurance, student loans etc. Has been a huge "priority" in my life. Priority is in quotes because I have great intentions but I always manage to put that on the back burner(to buy bro's/AT setup). My credit is not stellar and that is something I need to work on before I enter the "real world".

Income comes from a once a month stipend from grad school. (although I am starting a second job next week,it can't save me, I won't be paid until april 1 (biweekly and starting at a bad time)

Stipend day is today, so I get a sweet $1,000 check. When I was shopping for skins last night, I decided to add up my expenses and I realized that once I pay rent, pay my credit cards, pay my student loan company ( I stopped paying 2 of them 1 month too soon before my deferment began, so I owe each1 payment to be caught up), rent, I'm basically left with $150.... for the rest of the month. Just enough for skins, but literally nothing else. I won't have a beacon, I wont have a probe and I wont have money to pay for lift tickets. I haven't even registered my car because I cant afford it (was supposed to do it in february)

So what the hell am I doing? I bought the bro's and Naxo's so that I could save money by not buying lift tickets, but I can't complete the setup and I can't go skiing. I've skied 7 times this year... 7! and I live in Bozeman. I honestly just can't afford it. I feel like a poser, I've been posting a shit load on here because thats the only way I can get my skiing fix. My skiing has sucked this year, I'm out of shape and frustrated and I know more days on the hill will help that. But now is march and my season hasn't even "began" yet.

But is skiing and the toys that go with it ruining me? The situation I'm in now really has me wondering, should I just start to sell everything off. Pay off my debts and finally not have that hanging over my head? It wears on me every day, when I'm stressed about money i turn into a dick and my friends notice it. I get depressed and everything basically sucks. Normally I don't get frustrated with school, but right now I want to pull my hair out. It all comes back to money.

I'm reallying going crazy over here and I don't know what to do. I'm thinking I can get about 500 for the new bro's (350 for bro's) with naxo's(150). I have a great tent/ softshells and other things that would probably go if the price was right. The prospect of having $800 to pay for bills and a huge monkey off my back is starting to seriously trump skiing. At that same time, its just tough to finally let go and admit defeat.

My problem is that I want want want, but I'm in no position to buy buy buy.
I need to get into a better position.

Edit: I reread the lineskier- thread and I think the reason i got pissed/upset is that I love the shit outta the community here and the days I've skied this year have been through the graces of fellow mags who hooked me up with free bindings and skis... hell the hiking boots I wear almost daily were from the free gear thread too. I appreciate that shit every day (thanks Rontele, El Chup, Mntlion. )

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Originally Posted by XtrPickels

I'm 24 with about $7,500 in credit card debt.

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First this, then:

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When I was shopping for skins last night

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Houston, we have found the problem!

Time to start selling sperm.

(1) more cc debt

or

(2) sell the stuff since it's not the right time to be spending the money on an AT setup and/or additional toys.

Seems like the obvious choice is to sell the stuff because the situation is stressing you bad enough to detail it here.

My .02

advice from an old guy....

Write this season off and get your house in order.

Debt is a killer, avoid it like a dose of the clap

If you can't pay for it in cash, you can't afford it

Break the debt habit now or you will spend your life making other people rich.

Don't swim in anyone else's cash stream.

When you buy a house, put max $$$ down and avoid a huge mortgage payment. Never lease anything


Always put money away towards tomorrow. No Matter what,DO IT

We are pretty similar, except for the debt and the skiing.
Here is my advice:
Live with a ton of roomates.
Buy a pass, not a new setup.
No credit cards.
Only drink pabst.
No drugs.
Cook your own food.
Graduate on time.

Dude, dont panic. We were all in that boat once in our life. I personally never had any credit card debt in school, and I regret it. Instead of going to europe like the rest of them, I went staright to work. A couple of yrs later I had plenty of money, but no time. Maybe you didnt need new skis, but dont hit the panic button. You cannot give up skiing, you will be worse off. You need a balance.

My advice, when the snow melts, find a way to make some real money. Get a back breaking job for 2-3 months this summer, construction or something and pay it off. Plan now, you will feel better.

You do not want a life full of regret. Just plan better in the future. Never buy anything new. You have to be scrappy in school. There are all kinds of ways to make money on the side. In the springtime I use to aerate lawns, in the fall, clean gutters. Cash business. Lots of opportunities on the web these days. You are too old to just be a profesional student with no income.

Good luck.

I would suggest that the income from a part time job (preferably under the table) would go a long way towards helping you get on top of things. You don't have money, but I'm sure you could squeeze out a few hours a night a couple nights a week.

grad student tutoring can net about $70-100/hr.. even to high school kids...

thats a good gig if you set it up 3x a week, you'd double your income.

keep skiing, just be smart about it- you could always use skiing as an incentive- ie- if i am frugal all month and save "x" dollars, i can ski two days or something like that... or let yourself buy something new that is cheap- like a hat... cheap thrills :)

good luck!!!

Whatever you can pay off, do. All it's doing is compounding. It seems right now you need to cut off your non-essentials. Some people can go into debt for a little while because they have the financial discipline to get out. Those are usually the people who don't get into debt...you are probably not one of them. Ignore Cono Este's advice about getting in debt being ok; for the great majority of the population, a little debt becomes a lot. You need to get out ASAP.

Another thing: cars are huge expenses. Do you really need your car? I know plenty of people who use bikes and buses as their main form of transportation. Will that work for you? Not only will you get the money from selling your car, but you won't have to pay gas and insurance.

Yeah, car is pretty important because I live on the outskirts of bozeman and school/work is on the other side.

I've tried to be frugal, definately get good deals on the things that I have and if I didn't have the debt over my head, then i'd be golden. I probably spend less than most on what I buy... but all my money goes towards bills. Its definately a bad place to be.

Knowing that money has been a problem I've been looking for a second job ever since I got here. Finally a month ago I had an interview/got hired, but things were put off until next week. I never intended to go so long without extra work.

Basically I'm gonna sit down tonight and see if its really as bad as I think it is, if so than there maybe a a pair of bro's and some other things will be in gear swap.

Well I can relate, being a student and all, loving to ski, and frankly not having done enough of it while I've been in school. My lack of skiing the last few years has been due to a combination of lack of time and lack of money - sometimes it's been really frustrating and sometimes it's been really depressing but it's not forever and I know I will be back skiing more soon (I hope anyways :p ).
One thing you might want to consider is finding a way to stop carrying a balance on your credit cards. This is one way I manage my debt at the moment. Most credit cards seem to have ridiculously high interest rates ie. 18%-27%. Credit lines have much lower interest rates ie. prime plus 1% or 2%. If you are forced to carry a balance you would be much better off going to your bank getting a credit line to consolidate your various credit card debt (then cutting up said credit cards) and keeping only one low limit credit card to use for emergencies.
Consolidating like this doesn't mean you can spend more but it does mean that more of what you are putting against your debt is actually going against your debt as opposed to going to a credit card companies coffers.

Dude, get a sawed-off shotgun and visit as many 7-11s as you can. End of debt and you keep the skis. DUH

Squatch, im not saying debt is ok, you think im stupid? Im trying to say you never get the best of both worlds. As soon as the guy is done with school, he will wish he had time to ski. LIfe sucks like that. If you can come up with a plan to pay it off in the very near future, why press the panic button now and only have more regrets? ie. the skis i lost money on etc, the sweet tent i sold on ebay for nothing.

I used to worry so much about everything i got ulcers at 26. He does not need a bill for the pruple pill on top of everything.

I guess it came out wrong.

Do not sell you most prized posessions for 800 bucks. YOu will feel worse. You need to pay off that entire debt. Refinance it to a cheaper rate, stop spending, make a plan with a summer or second job and pay it off. Aim to be debt free by next season, then live it up with your new Bro's. YOu can do it.

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Originally Posted by XtrPickels

I decided to add up my expenses and I realized that once I pay rent, pay my credit cards, pay my student loan company ( I stopped paying 2 of them 1 month too soon before my deferment began, so I owe each1 payment to be caught up), rent, I'm basically left with $150.... for the rest of the month. Just enough for skins, but literally nothing else.

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Here's the way I think about it. If I've got debt on a credit card, there is no such thing as extra money. If you've got a balance, your best use for any available money is to pay the balance down.

I'm just about finished digging out of a similar hole. It's a painful process, but once you're free and can start saving it's a wonderful feeling.

you should also think about transfering balances to promotional introductory rates if you can. you can get 3 months with 0% with a lot, which could help a lot. be sure to read the tiny type about how long you have to keep it and minimum monthy payments etc.

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Originally Posted by gonzo

you should also think about transfering balances to promotional introductory rates if you can. you can get 3 months with 0% with a lot, which could help a lot. be sure to read the tiny type about how long you have to keep it and minimum monthy payments etc.

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worked for me, and do it as long as you can! after a while they catch on and quite sending the promos. hopefully the new job will have kicked in by then. first things first......get out of debt and sell your "stuff". you'll always be able to get your stuff or better stuff here when you can afford it thanks to dudes like Mtlion and El Chup. keep one pair of skis and the hiking boots for spring when the snowpack is bomber. hang in the man! if i did it you can too!

Ummmm.... I deposited the check from you today (for the Naxos). Hope this doesn't mess you up. :frown:

xtra pickels

keep at it man
I paid off 8 k of debt twice
once was gear, life, gear, things I thought I needed...and the second was a knee surgary.
Now I am married, own a house...IE have a mortgage, and have all the skis I will ever need. Pro riders and Igneous FFF along with 5 other misc pairs. Only because I picked up a second job bartending and worked 3 nights a week for 2 years.

here's what I did
Bounce from zero percent CC initial offers. Ask to get the transfer fees waived due to economic hardship. Explain your Grad Assits gig on how they pay you only once every month. Sack up and find a 2nd job PT and tips related, Bartending or waitor. Or anything under the table. Construction- Landscaping jobs are like that and spring is right around the corner. Use any extra money you make from the 2nd job to pay down your debt.

Also keep your student loans in deferment for as long as you can so that you can catch up on your gear debt.

After you recover use this following motto.
If you don't have cash for it then you obviously don't need it.
also plan on saving up for things you want need. IE Skins, Pass or anything else that pops up. I am saving for a used pickup truck right now. 250.00 a month and in 2 years I'll have a nice down payment.

Hope this helps out!!!
Keep at it

Late

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Originally Posted by XtrPickels

My problem is that I want want want, but I'm in no position to buy buy buy.

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The less you have, the more you want. Try patience.

I thought it was: The more you have the more you want.

So basically, I've sold a bunch of the extra stuff that I've had. Out of that, I'm buying some skins on the cheap and the rest is going to paying off the card with the lowest balance (also has highest interest rate).

So after my initial freakout, I'm back heading in the right direction.
Worked my first day at job number 2 today...I could have gone with a seasonal job for a few more bucks, but this one I will have lined up next year + I can work during school. Fleet Feet in downtown Bozeman if any of you mags need running shoes...

Thanks for the solid advice. Just needed to get my head back straight, see there was a way out and that I was screwed completely.

You'll be fine. ;)

(you guys sell Salomon running shoes?) :biggrin:

another note, if you have direct deposit, or even if you don't take 50bucks or 100bucks or 25bucks a check and put it into some account, and forget about it...religiously. Just do it. You can manage 25bucks, it's a few beers and a burger. You'd be surprised how quickly it adds up, and once you see the balance growing, you'll want to add to it....i know it sounds small but i've saved more than i ever thought, saving little here and there.

my biggest issue was food and booze. I become great and being exceptionally low budget on everything but "certain' types of gear. You'll figure it out but ultimately quit buying shit, you know it's binding you up....

Xtr-

$7,500 is not that gnarly. Not that you should dismiss it and not worry about it, but it's nothing you can't overcome with a decent plan. Don't sell what's most important to you and take a loss on it only to take a petty stab at that balance (you'll only end up replacing the stuff at retail as soon as you can and kicking yourself for it). It doesn't sound like you have a baby to feed or any other situation so compelling that you should forsake what you love.

Once you sit down, assess where you are and where you want to be, it will be a lot easier to figure out how you're going to get there. This will include decreasing your expenses, increasing your income or both.

While now might not be the best time to do it, I recommend buying Quicken or MS Money and putting all you info in there (maybe borrow a copy from a buddy and load it on your comp). Their planning tools are great for setting and realizing goals. If you plan conservatively and set a date for when you'll want to be out of debt, or have $X invested, you'll feel much more in control of your life and the sense of despair and depression will dissolve. Knowing that: "By April 1, 2007, I will be out of debt" is incredibly empowering.

The other thing I've noticed about planning like this is that the sacrifices you make in achieving the goal stop seeming so significant. You're not poor, helpless and scrounging around aimlessly. Rather, you've got a concrete plan. I've dipped into debt a couple times and each time I've planned like this, I've beat my target date to get out because doing so becomes like a sport to me and the same side of me that wants to be a good skier wants to achieve the goal of getting out of debt. Eating a $.39 can of black beans with a side of baby carrots for dinner is a sweet move to implement the plan rather than some depressing indication that I've fallen to a new low in life.

On the cc balance transfers, concur this can be good strategy but beware: there is typically a charge for doing the transfer (usually 1.5%-3%, some times higher). If you bounce the dough around every time your introductory rate expires you can meet or exceed what you would have paid in interest if you'd left it on the original card. Somebody mentioned requesting a waiver of these fees above - sweet if it works.

Keep your head up, dude. Take control of this thing and face it like a man rather than moping around with a defeatist attitude. Your situation is not as dire as it seems and you have the tools to correct it. Look at this as an opportunity to employ your ingenuity. Keep us posted!

It's less than 150 per week to pay this debt off in a year. Get one of those mostly cash jobs as suggested above. Try to break 300 a week.

Every week pay off 200 and give yourself 100 to use as play money/ savings / etc. Get into planning your finances now. At the end of the year you'll have paid off your debt and earned an extra 6000.

Try not to ever dip deeply into revolving credit again. Debit cards now have all the perks of credit cards so there's little need.

Debt is like playing with fire. sooner, rather than later, you will get burned. go talk to a banker.

This is my first post, and I couldn't resist... I've been in a situation quite similar to the one you've described.

Two summers ago, had purchased a new bike and dropped more than I should have at the time. A couple of months later, I decided to sell the bike for nothing near it's worth (at least what it was worth to me) to help bail myself out of a financial situation I was being consumed by. I thought it was the smart thing to do, and truthfully, for the moment it probably was. It was quick and easy and I was able get my head above water (for the time being). To add to that, it wasn’t as devastating as it could have been since the weather was cooling off and I was heading into ski season; I was starting to shift my attention away from cycling. But as soon as the weather started warming up, and I was itching to get out and ride... my bike was gone and the regret hit me quickly. I was way more bummed to be starting off the season with no bike, DYING when all my friends were getting out and taking their first rides, than I would have been picking up a second job and chipping away at my debt slowly. I ended up having to do just that in order to get another bike (btw, paid cash for the new one!). Anyway, my advice... keep the skis and gear. Enjoy the rest of this season as much as you can, and bust your ass this summer. Once the snow starts falling next season, you'll be so happy you did.

I'm still young and I still cannot say that I am out of debt (still chipping away). I probably don't have enough wisdom to offer any REAL advice, but from my experience I felt like it wasn't worth it in the end. You need the release. Make time for the stuff you love. I mean, with out that, forget what you're going through now- you'd REALLY go crazy! That's my two cents...

I'm sure what ever you decide to do will be fine. Good luck.

Oh, and btw.... love Fleet Feet, it's my choice stop for running shoes.

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Originally Posted by Cono Este

Dude, dont panic. We were all in that boat once in our life. I personally never had any credit card debt in school, and I regret it. Instead of going to europe like the rest of them, I went staright to work. A couple of yrs later I had plenty of money, but no time. Maybe you didnt need new skis, but dont hit the panic button. You cannot give up skiing, you will be worse off. You need a balance.

My advice, when the snow melts, find a way to make some real money. Get a back breaking job for 2-3 months this summer, construction or something and pay it off. Plan now, you will feel better.

You do not want a life full of regret. Just plan better in the future. Never buy anything new. You have to be scrappy in school. There are all kinds of ways to make money on the side. In the springtime I use to aerate lawns, in the fall, clean gutters. Cash business. Lots of opportunities on the web these days. You are too old to just be a profesional student with no income.

Good luck.

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I've never heard of a graduate program where you have a lot of time to spare... or one that smiles on you taking a lot of time off (you know, vacationing). College is the time to party it up... grad programs expect you to focus.

I think everything else I would say has already been said, so I'll leave it at that.