How do I feel about our debt?
Debt Hater answered this question about her own situation, and then asked others to comment. Debt Hater was mostly commenting on her credit card debt, and we have a little bit of a different situation, so I’ll talk about that.
Our debt right now is a business loan that Brent and I got in February of 2004. Brent was working at a crappy job and wanted to start his own video production business. I was working full time then, we had only a small car payment and a cheap apartment, so we thought - what better time to do this. So he gave his two weeks notice - and at a great time too because his office was just about to announce that they were moving everyone to a different city.
The thing about video production is that you need a good amount of equipment to make it work. You can’t just do professional grade stuff on your Dell Home PC. So what Brent had to do was drive an hour and rent a production studio for $100 per hour every time he wanted to do a project. This was huge pain, obviously. After about a year of doing this, Brent decided to venture out to buy the equipment and set up his own studio. So we got a loan for $25,000. About this time his business dropped quite a bit. He still had enough work, especially right when we needed it, but he also had a lot of free time. So he started spending a lot of time volunteering at our church, and using his equipment to make videos for them. Eventually they hired him as their Tech Director, and that is where he has worked for almost 2 years. So now, even though Brent really isn’t doing any work with his business, we’re still paying the loan. I can’t really say that his business failed, because it could have worked, but our circumstances and priorities changed. Now he’s slowly selling off some equipment, getting different stuff, and our church has the best tech team in the state :) I don’t regret or resent getting this loan. Don’t get me wrong, I will be so glad when it is paid off and gone, but it was not a rash decision or a bad move for our family. I asked Brent how he felt and he said, “without it we would have been screwed” and “I feel like it got us out of a very bad situation [his old job], and got me my dream job”
Our other debt is our car loan. We have about $8K to pay yet. I don’t regret this either. We only had one car, and it was really falling apart. We didn’t have the money to fix it (could have been up to 2K for repairs – I don’t think the car was even worth that), and it was a miracle it made it as long as it did. As I said in a previous post, Brent researched for a long time for what car to get. Yes, we could have gotten a cheaper car, and we did look around some, but I think we made a good choice. Our car will be around long after we pay off that loan. Hopefully by the time we need a second car again, we’ll have some money saved up and we won’t have to get a loan, but if we do, I trust that it will be the right decision for us at the time.
So all in all, we have about 16K in debt. My pie in the sky goal is to pay all off by next summer, and we’re on a good track for that now. We’ve learned a lot about business and money and debt and saving in the four years we’ve been married. Our pie in the sky goal is to pay all off by next summer, and we’re on a good track for that now.
Labels: Saving Money