You know that birthday wish list I posted a few months back? Well, I just crossed out one on my list. It’s just one of the benefits of being debt free. A few weeks ago, we dropped by the Glorietta Activity Center to check out BPI’s Installment Madness, which runs from June 11 to 28, 2009, and we ended up buying this from The Computer Authority (TCA):
It’s an Acer Aspire 4736Z-422G25Mn (number 4 on my list) with just the right specifications for our needs. And since we bought it in cash (Yes we did! Oh yeah!), we were able to get a ton of freebies: (1) free genuine Windows Vista OS (priced at Php4000); (2) free SmartBro Wireless Broadband Kit (priced at Php1500); (3) free movie tickets for Ice Age 3, complete with snacks and drinks; and (4) an Ice Age 3 shirt. The power of cash! Now I’m just waiting for my Canon camera (number 3 on my list).
As I previously mentioned, debt is very much a part of our lives. When we’re riding a public utility vehicle like a jeepney, FX, or taxi, we are in debt to the operator/driver until we pay our fare. In the same way, when we are dining out, we are in debt to the restaurant owner until we pay for our food. We can’t really avoid debt. Therefore, we can’t say we’re literally debt free. So let’s change its meaning to something much more appropriate. So here, when we say debt free, it just means that we have our finances under control. OK? Now that we have that cleared, let me pick up where I left off: the first step to getting out of debt (the first of three steps).
The first step to get out of debt is actually quite simple: face your debts. You will never get out of debt by ignoring debt. I know a lot of people who choose to do this, avoiding the debt collectors and ignoring the bank statements/letters, to the point of receiving demand letters from lawyers. I now the feeling, believe me. I’ve been there. Those were some of the very stressful months of my life. I dreaded hearing the office phone ring because it might be the debt collectors asking me again when I’m going to settle my debts. And they called everyday. And it was doubly humiliating because our whole department shares the phone. And we all know how different those calls are from a phone banker asking for somebody to apply for a credit card to a demented debt collector who will stop at nothing to talk to you.
And so, as a part of facing your debts, accept all calls from debt collectors. In fact, I urge you to call all your banks. Ask how much you really owe. If you’re reading this, and you want to get out of debt too, here’s what you need to do: make a list and write down your debts. This is really important. You need to sit down, have a pen and paper ready, and list all the debts you have. And I mean ALL. If you owe your parents some money, list those too. Include the debts from your friends, brother, sister, etc. And don’t exclude anybody. If you owe your uncle Php100,000, put that in the list too, even when he said you can pay him whenever you can. If you owe your friend Php20, put that too. ALL your debts! No matter how small. ALL. This way, you’ll have a proper perspective of how much you really owe. It was quite an eye opener for us. It was horrifying too, because we couldn’t believe that we have accumulated so much debt in so little time. When we added all our debts, it was enough to pay the 10% (or 20%) down payment of a house! A house! That was how much we owe. So as an assignment, for your first step, I want you to make a list: your own debt list. I cannot stress enough how important this step is. Make a list. And keep it to yourself. That’s it for step one.
The second step, which I will post in a few days, will not be favorable if you wouldn’t do this. So go and make your list.
As part two of my last post, here are some more pics of the party decors and cupcakes during last weekend’s advance birthday party. Contrary to my SIL K.’s idea of a Barnyard Animal theme (complete with pet beds, and the dog and roosters all lined up to sing Happy Birthday), Yuan’s mom C. decided to have a Cars-themed birthday.
Of course we had Lightning McQueen.
Along with Duc Hudson and Sally Carrera (behind him).
His best friend Mater.
Luigi and Guido.
And Filmore too.
Bringing them all together in this cupcake tower I built! Snazzy huh!?
We were at my in-laws for dinner (again) last Monday night ( June 8 ) and found out that we would have an advance first birthday party for my wife’s pamangkin Yuan on Saturday ( June 13 ). Yuan’s mom will be leaving for New Zealand at the end of the month (Yuan’s birthday is on July 11), and the small gathering would also serve as a sendoff party. So the rest of last week was spent preparing for the small party.
We dropped by Mall of Asia (MOA), specifically Living Well, where my wife bought some baking stuff, and did a bit of shopping. It feels so good to be debt free. We paid in cash, of course. 
After a short trip to SM Sucat the next day, where we bought some styrofoam, a small pint of black styro paint, and a couple of brushes (we almost bought a receipt printer too) for making the cupcake tower, we were at Dough It All, BF Homes, to shop for baking ingredients. Baking day was Friday. My wife made two more desserts in addition to the cupcakes. She made Calamansi Bars, which were a bit too sour for me, and blueberry cheesecake, which was just perfect, as always. I had an Art Attack moment and made the cupcake stand. You can always trust an engineer to build something. More pics to follow. My Internet connection is currently tooo slooooow!
Debt is very much a part of our lives. When we’re riding a public vehicle like a jeepney, FX, or taxi, we are in debt to the operator/driver until we pay for our fare. In the same way, when we are dining out, we are in debt to the restaurant owner until we pay for our food. And if we pay using our credit card, then the cycle just took on a longer route, and now we are in debt to the bank that issued the credit card until we pay for our charges. A viscous cycle really that we’ve been trying to avoid.
By the end of this month, we will be debt free. And it’s such a feeling, I tell you. No more worries about monthly credit/loan statements and no more stress to go to work even when we’re feeling sick. Back when our debt was so huge, we couldn’t afford missing work and not rendering overtime work, because that would mean that the budget is ruined and more interest from the banks. Just like most folks would scrutinize and search for the best diet pill, we would read financial guides/tips to help us with our goal of having debt to easy and manageable levels. So in separate posts, I’d share with you how we did it: a step-by-step plan if you will on how to have a debt-free life and/or keeping debt to a minimum.
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