Thinking about debt... and weight

Last night on the Biggest Loser, Suze Orman talked about being overweight and a low FICO score. I never made the connection before about abusing food and abusing money too. I felt like a light bulb switched on over my head. ( Finally). See I like to eat and I'm about 30 lbs overweight. Those 30 lbs each equal 1,000.00 of consumer debt I surrently carry. 30,000.00 is what I owe now. More than last year and that's not counting the mortage or the car. I've been thinking long and hard about what to do about the debt. IF I rent my house ( possiblity), then i could have the debt gone in 1 year. But that means staying with my parents on the week-ends and right now, that would drive me over the edge!

So you can call me crazy, but I'm strongly considering cashing in my RRSP's and paying off debt, and cancelling the CC's and a lind of credit. I DO NOT DO WELL WITH CREDIT CARDS AT ALL! I would keep the CC I've had since I was 24 or 25 but it has a low limit. IF I cashed out so RRSP's, it would eliminate half of my debt immedieatly. ( I know I'd pay a 20% tax penatly next year). Then I could eliminate the rest in a reasonable amount of time, plus start to build myself back up.

What would you do?

Comments

Canadian Saver said…
You're 40 and no longer have the luxury of time on your side... I would NOT cash in the RRSPs. Not unless it was a matter of keeping the roof over your head and food on the table. You will regret it later on, I am sure.

I had over $40,000 in consumer debt and student loans in September 2002, and I paid it off the hard way, one dollar at a time. It's the only way I learned to manage my money. Taking the money from your RRSPs will be the easy way out.

The decision is yours, but you asked for our advice :-)
its me, sam said…
I just reread and I sound... desperate... It's time to get it together... The quick fix will not work... One penny at a time... It's time get real!.....
Jane said…
One pound, one dollar at a time. The only way to do it is by doing the hard work, the easy fix is not going to change your way of thinking or acting and that is what lands us all here in the first place.

Cut up the cards, freeze them in a block of ice, whatever it takes, but STOP using them.

You can do it! Go to Gail's webiste read some success stories for inspiration. Use her sheets and work your numbers. And remember Ben Franklin's lessons on compound interest, you don't want to pull your RRSP's.

Get back to basics and remember your support networks!
Heather said…
I've been a blog lurker...and would never normally comment...but you did ask for input...

I would NEVER say take out your RRSPs - seems like the easy way out. I have to tell you I make a great salary, but would never spend money on magazines, books, junk food even on my good salary. You enjoy many luxerieis that I don't and I don't even have Debt!! I think you need to bite the bullet and just stop spending money the way you do and funnel it towards debt. Yes, we all deserve treats now and then...but you are just digging yourself deeper. Buying a magazine is not a "treat" you deserve in your case...it's buying yourself more problems. Just suck it up, stop spending, move in with your folks...whatever...just plan for a tough 12 months or whatever you need to get out of debt and DO IT!!!!
Col said…
I don't know what an RRSP is but if it's retirement, don't touch it. If it's not , then yes, I wuld go ahead and clear up as much of the cc debt as I could. But hey that's just me.
The Witch said…
Don't touch the RRSPs.
You will have to buckle down and start a plan to manage your money better.
I feel your pain because the house has been really sucking you dry with all the renos. Some planned and some just hard luck and crap workmanship.
You work so hard at home and two jobs I really don't know how you do it.
The bloggers responding really do know their stuff and we are all here to offer advice and support.
its me, sam said…
Hello all, thanks for your comments. I appreciated them. I'm not going to cash the RRSP's, nor will i live with my parents for the next year. I had thought about it, but I will most likely end up severely depressed living there, as I love my parents but I like my freedom, and living there I would be limited. So plan B... House stay's empty during the week, with someone checking on it everyday. My power bill would be lower, as would my oil, and I could cancel the satellite completely, as no one would be here to watch it. Plus I could work twice on the week-end, as there would be just me here most of the time and there is only so much time I can handle hanging out with other people. Just my rambling for now.
Heather said…
So let me get this right....you like your freedom - but are willing to be held captive by your own debt for longer than you need to....I don't get it!

You are willing to endure longer term debt (hence no freedom) rather than short term loss of freedeom (living with your parents)

I really don't get your choices at all!! (:

I would just pull up my socks and do EVERYTHING I could to get out of debt in the short term...even if that means living with parents! Set a deadline - like a max of 8 months and JUST DO IT!!!
Sharon said…
I understand your need to get things paid off sooner rather than later, and cashing out your RRSPs is one way to do it. But I'm glad you agree with the comments, and will do it the "hard" way. It will probably have a long lasting affect, and keep you out of future debt.

I'm not a patient person, and I made many mistakes by taking equity out of our home so that we could do home improvements. I'm so sorry that I did, and I regret it, since my mortgage amount really has not decreased since we bought the house 12 years ago.

And now we would love to move to the lake in retirement, and we would be so much closer had we not used the equity in our home.

But I've learned, and I'm no longer borrowing money. (Wish I had learned that sooner!)

In any event, I will cheer you on until the very last debt is paid off! YOU CAN DO IT!!! :)

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