Movie Review: Maxed Out

Featuring Dave Ramsey, a bunch of average Americans, and Robin Leach, Maxed Out is a great documentary about the debt mentality in our society. I wouldn't say that I learned a whole lot that I didn't know, but it's definitely a good reminder of why I don't want to be in debt and how most people get trapped in it. It includes people who take their situation lightly all the way to those who committed suicide because of their debt. They also talk how in the past you had to "earn credit," but now anyone can get a card...they talk about the surge in college students getting credit cards as an example of this trend. It definitely puts blame on the credit card companies and the government instead of the consumers. Which is valid to a degree, but I also think people do need to take responsibility for their actions. It's interesting that the film came out in 2006...sort of ahead of it's time considering how the debt crisis exploded in America. I think this issue is more and more on people's minds, which is one of the few upsides to the economic crisis.

Here are some "fun" facts from the film:
*In the US, citizens receive a total of four billion credit card offers a year. Banks alone have offered three trillion dollars in credit.
*The average American household has more than $9,000 in credit card debt and spends more than $1,300 per year in interest payments.
*In 1972 a couple who both worked full time, 40 hours per week was denied a credit card. Now, a college Freshman can get a dozen cards easily.
*Your FICO score has nothing to do with your income and 90% of the reports have errors on them. Also, Suze Orman has a deal with FICO's parent company...which might explain why she puts so much importance on that score.
*In 2006 more Americans went bankrupt than got divorced, graduated from college, or got cancer.

Do you Ebay?

Today I logged on to Ebay to list a few items that I'd like to get rid of-a solar lantern, a Snoopy Sno-Cone Machine, a Dodgers Beach Towel I got as a giveaway at the game, and some hair gel that I have no idea why or when I bought (it's the fancy brand so it's worth reselling). I don't know if any of them will sell, but if not I am just going to goodwill them. I figure it's worth a try to list them. :)

Then, since I was already on the site I decided to see if they had my beloved Stila eyeshadow in Kitten (best color ever). I am almost out and since it's my go to swipe over my eyes when I don't feel like putting a lot of effort in color, I definitely wanted to replace it. Stila eyeshadows retail for $18, so I was stoked when someone was selling my shade for $7.99, with free shipping. Score! I snatched it up and it's on it's way.

I also decided to check out the OPI nail polish selection on Ebay. Those bottles retail for $9. The polish is way nicer than the cheaper brands, and doesn't chip as easily...but that's still a lot of money for a bottle of nail polish. I had some colors in mind, but when I searched those they were all MORE expensive than they retail for...weird. Maybe some people don't have Sephora nearby and people are hoping they'll buy them for the convenience factor? But, when I checked out the used selection I found someone selling 120 bottles for $20 plus $15 shipping. It's from a salon, and the listing said some are new, some are used. I am thinking that if I win the lot, I can go through and choose the ones I want to keep and make listings for groups of the ones I want to get rid of. This way I'll earn some of my money back (hopefully) and get some new polish. I never run out of nail polish anyway...I always end up throwing them away before I can use it all, so I don't really mind them being used. This one is a gamble, but I'm crossing my fingers it works out the way I want it to.

Do you buy stuff off of Ebay? Any good bargains or horror stories?

Sh-sh-sh-shopping!

I have a distinct feeling that I am going to enjoy this post more than most of you. It's stuff I bought and how much I saved. But I am enjoying the thrill of clothes shopping, so even if I am the only one who reads this one, I'm fine with it. :)

I did my shopping at Marshalls, Nordstrom Rack, and the Banana Republic Outlet. I could have gone crazy at the BR outlet...they were having a sale on top of the outlet discounts. And those clothes are so beautiful, I wish I could live there. I would seriously move in.

I set out with a list of items in mind to purchase, which I detailed in another post. I bought most of the items on that list, including new black sandals to replace my old ones...this was a necessity, as my old ones were worn down to the point of being uncomfortable. So, the outlet price for black leather flip-flops was originally $29.99, but I got them for $14.99.

Hello, lover.

I also got a white cardigan, which I won't bother posting a picture of. My black cardigan is from BR, and I love it, so I snatched up another item from my list. Outlet price: $44.99, I got it on sale for $31.49. I also bought these two items from BR:

Originally $39.99, I got it for $23.99

I can't wait to wear this one! Originally $54.99, I got it for $31.49

Another item on my list was a new white tank top. I wear mine under all sorts of items, and I knew it was getting dingy. I didn't realize just how dingy though, until I bought a duplicate one at Nordstrom Rack

I'll let you figure out which is the new, not disgusting one.

I also picked up a pinkish-purple tank top in the same style, since they were $12 each or two for $16. Last, I went to Marshall's and got a Steve Madden belt for $12.99 (I need a black belt for this dress I already own, so this too was on my list) and a heather gray cardigan that is super light and comfy and cute for $14.99.

After tax, I've spent a total of $161.82. I have a little more leftover for the month (I allotted more since I had extra summer school money and I am in celebration mode), which I will probably spend on nail polish. 

Here's where it gets back to personal finance, instead of a web fashion show (if anyone is still actually reading): It felt so good to know that I was shopping within my means, instead of just blindly spending and worrying about the consequences. I am out of credit card debt and I knew exactly how much money I had to spend on clothes this month. I feel like I got a good mix of necessities and fun items, but never even thinking about plunking down the credit card to pay for them may have been the best part. I have zero remorse about this spending, and it's such a difference from how I used to shop. I think my year off from shopping was really good in that way. It broke me of my bad habits (let's hope for good!) and made me think of it in a different way.

So hurray for paying down debt and hurray for new clothes! :)

Operation Keep the Change

Over at If I Were a Wealthy Girl, Broke by Choice started her own "Keep the Change" program. Basically, she decided to put all the leftover cash from her envelope system into a jar at the end of each month. She used a plastic bottle, sealed the top, busted out the Sharpies and made her own container. She then threw out the challenge to the rest of us PF bloggers to do the same.

I rarely have leftover cash at the end of the month-I use it for eating out and shopping, so I tend to spend all of it. BUT, I decided to start pulling all of the change out from my wallet and keep it separate from my cash. Then, if something costs $9.76 I just record it as $10 and put the change in the fund. This makes the math on my tracking sheet easier and will hopefully help me save a little more money. Rather than a bottle I decided to class it up and use my giant martini glass.

Unfortunately, since I need quarters to do laundry, this will get raided. So even when it's full, it probably won't be that much money. But, I am thinking I can fill this up and then maybe find another bigger container and go from there? Maybe all my change for six months or something like that?

My other dilemma is that I don't actually know what I'll use this money for. Since it's leftover from eating out and shopping, it doesn't make much sense to put it toward either of those things. Maybe just for a rainy day? Any suggestions? What do you do with your change?

Today's the day...

This morning I got up and checked that my direct deposit went in first thing. Like, before I even got in the shower. It had.

Which means...

I AM OFFICIALLY OUT OF CREDIT CARD DEBT!!!

Dude. I'm so stoked to have that done with. I made the payment right away, fist pumping my way into the bathroom to take a shower. The only consumer debt I have is my car, which I am hoping to pay off one year early.

It feels so good to be out of credit card debt. It took me one year to pay off just over $5,000. I have such a feeling of accomplishment and am so excited to be able to clothes shop again. You have no idea. But, it also feels good to plan a shopping budget and to know that a new dress or pair of shoes won't bring me into debt, causing guilt and stress.

My next post will be about shopping. Probably with pictures and vivid details about browsing the racks of the outlets, Marshall's, and Nordstrom Rack. :)

Suck it, Credit Card Companies!

I just cancelled both my Capital One and my Target Visa cards today. Their combined credit limit was $7,500. That's keeping me out of trouble and giving me less accounts to keep track of. I've had the Capital One the longest, since 2002. I got it when I was 20, a junior in college. Honestly, I used it a ton over the years, loading it up and paying it off over and over again. (Well, it probably didn't have a zero balance too often actually. So more loading it up then paying it off.) It feels good to close the account, and close that chapter of having credit card debt in my life. Farewell, Capital One. And good riddance.

The Target card I got because I thought it was pretty. I kid you not. I was so lame financially. I also got Target coupons for using it, but really it was never worth it. I regretted opening it right away, and this one never had a huge balance on it. I didn't use it super often. Although I will say they were much more persistent in keeping me...she really tried to talk me into it, but I resisted. :)

I asked both companies to send a letter confirming that the accounts are closed. It feels good to have that taken care of!

So, the only card I have open now is my Credit Union visa card. I know some would say I should cancel that one as soon as I pay it off this week, but I do like having one credit card around for a dire emergency. Yes, that's what my emergency fund is for...but you never know and having the card makes me feel more secure. I have broken myself of using the card regularly, so I feel good about having it.

Technology Question

So today I was talking on the phone with the bf about technology. He's sort of an electronics junkie...he likes to buy himself new toys. But, he justifies explains he tries things out and then resells them on Amazon, so he doesn't actually spend that much. He says he often gets pretty close to what he paid by doing this.

His finances are none of my business (not yet anyway), but it led to us talking about how I want a new ipod (all I have is a shuffle and I'd love one that can hold more of my music), but that I am going to wait until my laptop dies and then hope that Apple is offering their free ipod deal.

He pointed out that they only offer that at back-to-school time (now) and said, "Why don't you sell your laptop now and use that money towards a new computer and the free ipod?"

At first I scoffed. My plan is to run my current laptop into the ground and then get a new one only when I have to. This seems reasonable to me in that it's not running out and buying something new when what I have is functioning. But, he made a valid point that if I do that, I'll get no money for my laptop and will have no guarantee that I'll get the ipod thrown in.

Huh.

He said I can probably get $400-$500 for my laptop online (I'll have to do more research on that), which I could put toward a new computer. I am still leaning way towards my original plan. But, he makes a valid point. And I could use my summer school money in September to buy a laptop debt free. Or I can use that money to pay two extra payments on my car. So I'm going for gazelle-like intensity toward my debt and praying that my laptop makes it to next summer.

But, what do you think of this point? Is it better to sell my laptop while it still works or run it into the ground, knowing I got all the use out of it that I could?