My Debt Story

January 20, 2010

I live my life by the following statement:

An object at rests tends to stay at rest and an object in uniform motion tends to stay in uniform motion unless acted on my an external force. – Isaac Newton

My Story

I was a senior in high school. I signed up and was granted approval for my first credit card one week following my 18th birthday. It was a Capitol One Platinum credit card with a credit limit of $500 and 21% APR. I remember thinking that $500 was just enough for me to purchase some things that I really wanted, but not enough to do any sort of damage. At the time I worked 20 hours per week at a major department store, earning $7.10 per hour. That comes out to roughly $560.00 per month. I knew I would be able to pay my balance every month if I were to max out, but maxing out was rarely the case.

For the remainder of my senior year and high school and through my third year of college, I made it a goal of mine to pay my credit card balance every month. I was successful in achieving my goal. In a matter of three year I was able to qualify for three more credit cards and three credit increases. My total available credit was $9,500.

At no time in that three year period did I carry a balance on to the next month. That all changed in a matter of 15 minutes…

Digging My Hole to come next.


Let the Journey Begin

January 19, 2010

I graduated college in May 2009 with a Bachelor of Science degree in Mechanical Engineering. When I started college, my parents did not have the funds, nor the income, to afford my tuition at a 4 year private univiersity. As a result, 60% of my college expenses were financed by federal subsidized and unsubsidized loans, private loans, and three major credit cards.

To make a long story short, I am a whopping $90,000 in debt.

Fortunately for me, my interests in math and science growing up were the leading forces that influenced me to pursue a degree in engineering. After graduating college, I landed a job as a design engineer for a respectable wellhead manufacturing company in the US and Canada oil and gas industries. I earn a rather median salary for my position, which is 10% more than the median houshold income for the city I live in. Being single, living 1700 miles from my home and family, and starting my career, I am learning a lot about living frugally, saving money, starting a retirement fund, and paying off debt.

Over the past few month, I noticed a large number of individuals who have held and are holding themselves accountable for their debt through blogging about their struggles, achievements, and climbing out of the hole of debt they originally got themselves into. I figured I would give it a try.

Now, I am not an expert at finances. I do not intend to give advice on money issue. What I will give you is my experience. What I will do is provide updates while I am on this path to financial freedom. This blog is mainly for personal accountability. But, I also welcome any comments, suggestions, and encouragement from readers who will choose to follow me while I am on this path to financial freedom.

Net Worth - January 2010