| Originally Posted by Opice34 |
Great advice everyone! Especially Christa!
Glenda - it sounds like you have a good head on your shoulders. When I finished grad school, I had 30k in CC debt and 60k in school loans. Paying that off was the hardest thing I've had to do, but it taught me that I will NEVER be in debt again. (And I have quite a good nest egg built up now, too!) So, I think it's good that you're not bailing him out. He needs to feel the pain and understand how serious this is! Does he recognize how impressive it is that you have paid off so much of your debt?
My concern is that if FI doesn't think debt is a bad thing, it seems that he'll just continue down this cycle. He needs some sort of mental shift, or once he pays this off he'll just accrue more debt elsewhere. Perhaps he needs to be explained the difference between compound interest working FOR you vs. compund interest working AGAINST you? What if you put together an amortization schedule showing how much money you'd have at retirement if you invested that $300 each month? Maybe if he saw how much the money would grow if it were put in savings rather than paying off interest for a credit card? The thing that eats me up about paying interest is that it's FOR NOTHING!!! It kills me! And if that doesn't bother him at all, I worry that he'll continue down this cycle.
In the excel help tool, if you put in "amortization" there is a template you can use. I used this to calculate the interest paid on all of my dates and also the interest earned on all of my investments.
He also needs to recognize that once you're married, it's not just HIS debt, it's your debt too. I assume you are making good money and having to sacrifice things because of his careless spending. If that's the case, he should be bothered by that. If he doesn't care about getting out of debt for himself, he at least needs to care about getting out of debt for you!
I hope everything works out. It took me a long time to figure out how horrible debt is, but I'm glad I got that lesson in my early 20s. It was so rewarding to pay it off myself and it was a priceless lesson! I do think the CC company will lower the interest rate if he consistently makes payments on time, but I think the bigger issue is that he doesn't seem to be concerned about the debt.
That is really impressive that you were able to pay off all that debt! Congrats that is a great accomplishment!