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This is the second in a series of interviews with people who are either working to improve their financial situation or who have already reached their goals. This week’s interview is with Twiggers, who writes In Debt Because I Like Nice Things. Twiggers and her husband are reformed frivolous spenders. They sold a huge number of items and are committed to a lifestyle change that’s getting them out of debt and improving their financial future.

Could you tell us something about yourself?
I’m a graduate student studying developmental psychology! I’m married, with no kids, one furry baby (dog) and 3 cats.

In what way have you turned your financial life around? (Or what are you working on changing?)
I have begun taking responsibility for my actions by starting to pay off my credit card debt and trying to just be more responsible with my money/finances. I really didn’t realize how complex finances could be. I just thought I’d pay off my credit cards and that would be it, but now I’m thinking about emergency funds and retirement. It can be very overwhelming at times.

Can you give a little bit of background on your story? What were things like for you pre-change?
Before committing to this lifestyle change things were much more fun around our house! We always went on vacations, gambling, shopping, etc. We bought anything we wanted without any second thoughts about it. It was really easy to just charge things on a credit card and worry about it later. I would say that about 80-90% of our credit card debt ($66,187 was the starting amount) was from frivolous spending, but there was also a little bit of medical bills on there too.

How much progress have you made?
In 7 months we have gone from $66,187 in credit card debt to just $16,650 and $300 in a savings account. We still have a long ways to go (we have student loan debt, and no retirement fund or emergency fund), but we’re making good progress.

How do you feel about your financial situation right now? (Or how did you feel after reaching your goal?)
I feel pretty optimistic and confident that we can pay off our credit card debt by the end of January 2009 and also meet some important savings goals for a big upcoming life event (a new job and move next summer).

What was the catalyst that caused you to take action?
I opened my closet one day and looked at the $20,000 in handbags and was unsatisfied. I had all this ’stuff’ and really nothing to show for it.

I was also disgusted with myself that I couldn’t buy that stuff out of my bank account. I mean, we make enough money to afford that stuff, but our monthly payments on the credit cards were soaking up all our money.

Did you have any setbacks? If so, how did you deal with them?
All the time! Just recently I spent $1300 gambling when it should have gone to credit card debt. We also had some drama with my husband’s ex and child support. Nonetheless, I’ve been slowly learning that a setback isn’t the end of the world. Take a deep breathe, remove yourself from the situation (physically and mentally), and just chill for a day or two. Come back to the problem and approach it with fresh eyes!

What has been the hardest part of the process?
Not being able to enjoy our money now. We’re currently paying for the mistakes we made over the last 8-9 years and it really sucks.

The easiest?
Selling everything! Made me realize that I really don’t need all that ’stuff’ around me to define who I am. (Twiggers sold purses, CDs, DVDs, video games, shoes, clothing, jewelry, tools, Christmas decorations, and their ATVs and trailer.)

How long has it taken?
We’re currently in month 8. Our entire debt should be paid off within 13 months.

What will be your next step?
Setting up a savings plan!

What’s the best financial advice you’ve received?
Don’t use a credit card!

What inspiration could you give to someone in a similar situation?
Honestly, this might sound a little cliche, but if I can do it, anyone can. I am a bit selfish and if I can give up pretty much all of my material possessions to be debt-free, then anyone else can do it. Also, just know that you are not alone. I have received so many emails from people I know who are very wealthy, and they are in the exact same situation!

If you would like to be interviewed via email for a future article, please email
c o m m e n t s @bluntmoney.com (without the spaces.)

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