Berit: 26 and a $100,000 in Debt

Zina Spezakis: Berit, 26 and $100,000.00 grand in debt part one. Hi, welcome to Tonka Beans. I'm Zina Spezakis. In our someone like you series, we interview real life women just like you about their financial lives. We look at their problems and we try to solve them, and with me here today is my friend Berit. So Berit, give us the cliff notes version of your life. Berit: Okay, I'm 26 years old and I go to school at NYU working on my masters developing my degree in Somatic Psychology and theater so I'm working on developing a technique to help people with emotional intelligence skills. Zina Spezakis: So, what's going on with your personal situation because I think that is important? Berit: Yes, I am in the middle of getting divorce right now. Zina Spezakis: Okay. Berit: So, I'm now—now I'm done with divorcing, I've moved out and live with my parents. So, I was saving money that way and I don’t deal with my finances that well. Zina Spezakis: Why, why do you think so? Berit: I think I'm a little bit careless. Zina Spezakis: Are avoiding them? Berit: I think I definitely I'm in denial, I think I'm—I like my life and so I think I'm feeling my life with fun things without realizing the cost. Zina Spezakis: Yeah, well it’s—that’s interesting because you sent me your debts and I put them on one big spreadsheet and what I saw was actually kind of shocked me, I saw nearly a $100,000.00 in debt for a 26-year old which is not good. Are you tracking anything or buying? What you are doing? Because there was a lot of debt, it was hell of a lot of debt. Berit: Yeah, I think one thing I do is I have a different page like every two weeks because I work on commission. Zina Spezakis: Okay. Berit: So, I think I have this sense of like, if I need it I get it and I figured it out later. And I guess I just fill in the gaps with what I can't afford in that pay check and I tell myself “I will pay it back” and I forget about it or I justify it somehow. Zina Spezakis: Okay. So, you're basically kind of live in at paycheck to paycheck at this point. Berit: Definitely, yes, Zina Spezakis: And you're making minimum payments on some of these things. Berit: Yeah, I'm always making minimum payment. Zina Spezakis: Where do you spending money on because this is a lot of debt. Berit: I think it would be like more like intellectual pursuits like if I want to attend a workshop or if I have you know face products like incredible face products from Switzerland. Zina Spezakis: Okay. Berit: Or shakes that are very expensive protein shakes that are—because they have the best nutrients in them, so oh, hair I mean like I guess, like hair is like a really big expense when I do go and to get my hair done or if I just feel I haven’t bought clothes in a while I’ll just get clothes that are overprice but because they're good quality and I think they’ll last longer. I’ll just buy them even if I don’t have the money. Zina Spezakis: You do think you don’t have enough clothing now? Berit: No, I think I have enough clothing. Zina Spezakis: Is there a reason why you’d need more? Berit: No, no I don’t plan it. I don’t plan the clothing buying. Zina Spezakis: So, how does it happen? Berit: It happens spontaneously, it happens completely spontaneously. Zina Spezakis: Okay then, you know, I may suggest that you leave your credit cards at home. And just carry and walk around with like $40.00 of cash in your pocket. Berit: Yes, that’s what I should do and I should. Yeah, that makes—because also the cash if I can see it, it helps but if I spend so much money on food because I'm walking around, because out of the house 12 hours a day when I'm walking around I’ll buy food, or if I'm exhausted I would like, I will buy some things to like pick my energy up. I probably spend a ton of money on— Zina Spezakis: Do you think you can carry sandwiches from home? Berit: Yeah, that’s what I'm going to have to do, that it has to do with planning ahead, yeah. Zina Spezakis: Berit, thank you so much for joining us here and thanks for just outlaying out on the table for everyone to see kind of your situation and hopefully some people learn from this as well. Tune in for episode two to find out more of Berit’s bad habits and just how far she’s willing to go to minimize her debts. This has been Tonka Beans, I'm Zina Spezakis, thanks for watching.