Coming Back to Reality in January

This was the first year in memory that I didn't use credit cards. I didn't borrow money, refinance my mortgage, sell stock or rob a bank. I didn't buy as many Christmas gifts as I have in the past, and, honestly, it felt good.

In years past, January is financial disaster month. I overspent on gifts, I didn't stick to my list (or my budget), and I felt I was merely doing my part to help the economy. I'm happy to say that my annual tradition of overspending on my credit cards is one I've broken. Some traditions you just have to let go of--and this one was a good one to say goodbye to.

I've been working on getting my credit balances down and my credit score up for the past year. I've paid off one credit card and paid off my laptop, which had a very high interest rate, in the past ten months. I won't lie and say it's been easy, because it hasn't. Learning to live within your meansis a hard lesson.

I'd love to think that there is a day coming where every cent I made won't have to go to debt repayment (or medical bills!), but I do have a brain and I know a fairy tale when I see one. I'm determined to not have to pay a credit card payment every month though. It's interesting that my credit score is great, but they tell me it would be better if I had a mortgage (no thank you) and some revolving credit accounts. Not going there, either. It's a good feeling to know that paying your bills on time every month gets you something money can't buy--a great credit score, and with that you've got some leverage to get low interest credit cards to transfer balances too.

I know that next January, my financial situation will be even better. I am constantly on the lookout to find ways to save money, and I'm certainly not above negotiating a better price when I can. I clip coupons, found a better prescription drug plan, save the change in the bottom of my purse and go where the discounts out. The only discount I'm not looking forward to asking for is the senior citizens discount!

Creating a budget was my first step and it astounded me how much I was spending on little stuff that adds up fast, like Starbucks coffee or fast food. I trimmed my budget as much as I could and then trimmed it some more, but there's only so much I can do. My medical providers would like me to make larger payments, but I'd like them to charge me less, so I guess we're at a standstill.

Thankfully I make enough money through writing to pay some of my bills and keep gas in the tank. I'm very grateful for my writing gigs because there is no way I could dig out of this hole otherwise. One of my biggest goals this year is to write more and find more assignments that pay.

Debt is no fun and I attribute it to the current recession; what I'm experiencing is what the government is going through but it can't, or won't, stop using credit to bail itself out. Credit cards were originally a good idea for people who could pay them off every month, but the credit card companies got greedy. Sorry folks, I don't feel bad when they have bad quarters.

So, how bad did your Christmas spending make your January?