Sticking to the plan must be its own reward -- for now

I got my tax refunds back. As I mentioned in my last post, I had been dreaming of buying some toys. It was tempting to reward myself for the progress I have made on paying down my debt.

I knew that would not be the right thing to do, but I was still tempted to spend a chunk of the cash on the thing I've been denying myself. Many of them are practical things, like some new shoes.

So it was awfully hard to send off an extra payment on one of the credit cards. But I knew I had to do it. The risk was getting too great that I would just piss the money away. Oh, sure, I would have used it on stuff I needed. I would have used it to replace stuff that was worn out and broken down. But it's also stuff I've lived without for months and can live without a while longer.

I am so tired of pushing this debt snowball. But I also don't want to do anything that keeps me pushing it any longer than absolutely necessary.

The debt I am working on now is the one that I hate the most. It's the Chase credit card that has been charging me more than 27 percent interest for years. It's the one that has pissed me off and continues to piss me off every time I look at my budget and my debt status. But now, I will can see the light at the end of that particular tunnel. And with the extra money from the tax refund, I should be able to pay off that card in August, if my calculations are correct.

I want to be done with that sucker. I need to be done with it. They've gotten more than enough money out of me for my stupidity.

I like to think I can keep up this pace until the end. I've done it for almost two years now. I've got a little less than 2 years left if I can keep this up. But I have to admit, the routine is wearing thin. I'm tired of living like a hermit to avoid spending money that's not in the budget. So close and yet so, so far to go.

At least on of my creditors may be getting tired of me not using my credit account too. The folks at Discover keep sending me special offers every time I turn around. And now,  I got a new Discover card in the mail this month, which was odd, because the old one had not expired and this is the third time I have got new cards on this account in the last 10 months.

So, when I called to activate this card I asked why I keep getting new cards so often. The customer service rep told me that since there hadn't been any activity on the card in a while, they just wanted to make sure I hadn't lost my card or something. I assured her, I had not lost my card (although I have shredded several of them, now). I said that I'm just trying to pay down all my accounts. She said she could put a note on my account not to send any more cards until this newest one expired.

If I had kept to the standard debt snowball method, the Discover card would be the one I would be paying on now. But, once I'm done with the Chase card, three of the card accounts I have left to pay all have within a few hundred dollars of the same balance. So, I'm tackling the highest interest accounts first. The Discover card has the lowest rate, so it may end up being the last, or next to last one I'll pay off. I can live with that. For a while anyway. Just, hopefully, not too much longer.

Struggling to do the right thing

I am dreaming of new toys.

I got my state tax refund and the federal refund should be arriving any day now.

I should put the money toward my debt. But I am really thinking about getting a new toy or two. Or three.

I have a new cell phone on my wish list. And my iPod battery won't hold a charge and the screen is going out.

Or maybe a new tablet of some sort would be in order, like a Kindle Fire. Maybe if I forgo all of those things I could even afford a new laptop.

Or maybe I could finally get a new camera.

So many possibilities.

I can almost justify it to myself. After all, I've got nearly 2 years of payments before I eliminate the debt completely. And the tax refund will probably only make a difference of about a month or so in the final payoff date. It's been so long since I've splurged on anything for me.

The refund is burning a hole in my bank account and it isn't even there yet.

I should pay on my debt. Should. Not sure I will though. I have been good. So good for so long. I'm not sure I can hold out until 2014.

Sometimes breaking up is easy to do

Over the weekend I closed another credit card account. I had paid off the balance on the card last month and the statement I got last week confirmed a zero balance.

It feels really good to have one less bill and one less credit account. I thought about leaving it open for a while with the balance paid off. But I am no longer motivated by trying to improve my credit score. I just want out of debt -- permanently and forever.

It feels particularly good to get this account paid off because it is one of the accounts that was charging me more than 23 percent interest. But no more. And the account was easy to close too. The automated customer service line meant I just had to push a few buttons and give a few voice prompts over the phone. No person came on to give me the hard sell to try to get me to keep the account open. I wish every account I closed made it so easy to break up and say goodbye.

I opened the account almost 17 years ago when I moved to California. It was a department store account that I used to buy my first washer and dryer. Sometime later it was converted to a MasterCard account, so I could use it anywhere. That turned out to be a bad thing, because use it I did, too often and too many places. I think my last major purchase on the card was, ironically, another washer and dryer when I moved back to Oregon.

That washer and dryer are still working fine. In fact they seems to be working better than ever, now they I know they are completely paid off, along with all the other stupid, silly, irresponsible purchases I paid for on that card over the years.

Six down. Five to go. I've paid off about 38 percent of the debt I had when I started this journey in May 2010.

The next card on my hit list is the biggest interest rate bloodsucker of them all. I should be able to pay off this next account in about 8 months, if all goes according to plan. It will be a great pleasure to get that account paid off and closed.

I also got my taxes done over the weekend. This makes the second consecutive year I've done my taxes really early. I used to dread that task. Now, I couldn't wait to get them done, particularly if it means I can apply my refund to my debt. I'm impatient to get this crap over with and move on with my life.

It gets better, folks. Don't give up.

In some of my early posts on this site, I wrote a lot about the pain and aftermath of the breakup in a personal, romantic relationship. But I am not grieving the loss of these financial relationships. Sometimes, breaking up is easy to do.

Technology closes the book on pages

I didn't know this was even possible, but here is proof the federal government can actually close a program this is no longer needed. It was announced today that the House of Representatives will end it's page program.

Here is a link to the Los Angeles Times' version of the story.

But, of course, the Senate page program will remain.

Less is more and enough is enough

I'm fed up with this political game of financial chicken taking place in Washington, D.C. If these idiots that the rest of us idiots elected to represent us can't prevent the federal government from defaulting on its debt, I'm not sure what we are paying those morons for.

However, it is equally infuriating is the simplistic language being used to describe the debt problem, the proposed deals and the language of who will "pay" or who will feel "pain" pisses me off to no end. And perhaps worst of all is the press lets these idiots get away with it.

If you only pay half-assed attention to this crisis, you could easily assume that the solution is simple. One side wants to cut benefits to the old and poor and the other side want to increase taxes on the rich, and it would be possible to assume that either idea would net the same amount of money. It would not. As I pointed out in a previous post, our government couldn't tax the rich enough to fix our debt for this year, let alone the total national debt. So, I won't belabor the point here. Can't someone just speak the plain truth?

Apparently not. Just look at the language of the proposed debt reduction packages. The truth of the matter is the "debt reduction" plans won't reduce the current debt at all, it will only reduce the amount of future debt our government will obligate us to pay. So, if the "big plan" would reduce the deficit $4 trillion dollars over 10 years, that means, if we are currently overspending at a clip of $1.5 trillion, we would only at another $11 trillion to the $14 trillion we already owe. Do you think that's going to make your social security benefits any more secure 5 or 10 years from now? Or your Medicare? Or your food stamps? Or your community development block grants? Or the funds for whatever pet federal project you absolutely think Uncle Sam should pay for?

The most urgent priority is that the government needs to prevent a default next week. However, we have to stop putting this problem off for future Congresses and presidents to deal with, and future generations to pay for. It is completely true that the government needs to learn to do what many of us have already had to figure out in this recession, which is to live within our means and only spend money on essential needs. Not wants. Just needs. And for those of us in the public who haven't learned the lesson, it is time to learn about personal responsibility. Pay as you go. You are responsible for yourself and your family's welfare. The lottery jackpot isn't coming to bail you out. The financial settlement is not coming to give you something for nothing. Uncle Sam is not our mommy and daddy, here to powder our butts and wipe our noses.

Millions and billions of dollars sound like lots of money. And it is. But what both Democrats and Republicans are telling us all is that they fully intend to keep spending trillions more than comes in to Washington on an ongoing basis. It's basic government math, where a reduction is actually an increase.

Our economic tsunami

I heard on the Today Show this morning that the current estimate on the damage caused by the Japanese earthquake and tsunami is $300 billion.

The amount of money the U.S. government is overspending this year is 4 times that much.

That's a massive tidal wave of economic destruction caused by Congress and the president.

Are you starting to get a feel for the enormity of our financial problem?

Taxing on the system

Well, at least I don't have to scramble today to finish my taxes, or rush to the post office to get the forms filed. It would not be completely out of character for me to file my taxes on April 15. But not this year boy. I'll have you know I filed my taxes on April 14!

And to celebrate the fact that I didn't have to pay (with money I don't have) and the fact that chore is done, I stopped off after work last night and picked up some beer.

I may have overdone it on the celebration though. My head is feeling like the neurons in my brain are lubed with molasses.

Good thing it's Friday. I think I need a nap. And a couple of aspirin.

Taxes
Hangovers