Ralph asked me why I didn't pay off my massive debt with my massive savings, so I thought I would share my response with all of you in case any of you are wondering the same thing.
The reasons are many.
1. I'm old and want to make sure I have some savings to fall back on so I don't end up eating Alpo later in life.
2. Much of that savings is tied up in 401Ks, investments, etc., and the tax hit would not be worth it.
3. I'm still old and I won't be able to build my retirement back up should I dip into it.
4. My thinking is that until I retire the massive savings is only to be used in the case of a true emergency (i.e. I or my husband are not able to work and the insurance company doesn't dish out the disability pay fast enough; or disgruntled underlings take my husband hostage and I have to provide a ransom to get him back -- or to get them to keep him).
My self-created debt isn't an emergency. It's a mistake, but I am paying it off using my own hard-earned money.
People who know my husband and I -- but not about my debt -- always ask why I work. By all appearances, I should be one of those women who lunch/play tennis/get daily blowouts/etc. But I work because I am a compulsive debtor in recovery who is trying to make my wrongs right. Working allows me -- not my husband -- to deal with my problems. (My husband, by the way, has been encouraging me not to work as well, but understands why I keep at it.)
I have often thought what I would do if I suddenly got a $167,313.77 windfall. Would I automatically pay off all my debt? Well, DUH, YES!!! I'm not that much of an idiot after all. But I know that a windfall is not going to make my debting problem go away. It's always going to be there. All I can do is work my 12-step program one day at a time, not debt in any way shape or form, stay away from my triggers (i.e. credit cards), live within my means and still have a life while doing all this.
So that, dear Ralph, is my answer. Anything else????
Dear Ralph.....
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