If you are a fan of Dave Ramsey, like I am, you know the term "stupid tax." That is his codeword for something you have done with money that is stupid beyond belief.
Of course, I have paid more than my share of stupid tax. (Should I apply for a refund?)
But probably my most stupid one involved a piece of athletic equipment, and you guessed it....a credit card!
At the time, I was in my fitness mode (unlike now. While in school, I haven't had a chance to exercise at all.) I was enamored with the exerciser that looks like you are walking--you just move your legs back and forth and there are arm pieces that go in tandem. I can't remember the name of the equipment--I think I have blocked it out of my mind, it was so painful.
I was enamored with it, because it looked like fun, and also it was quiet. This was important, as I could exercise in front of the TV and hear the TV, and I live in a condominium, and it would be quiet for my neighbors.
Well, I saw them on sale at K-Mart, so I go trudging over to K-Mart, all excited. On top of the sale, I could get an extra 10 percent off if I applied for the store credit card and bought the item that day. It was not an impulse item, as I had wanted to buy it for a long time. But the smart thoughts stopped there.
I applied for the card, got it, and charged the equipment--$200. I put it in the car and drive home thrilled. I get the awkward package up the stairs into my place, and couldn't wait to put it together.
Unfortunately, I could never get it assembled correctly. It looked right, but if I got on it and started walking on it, one side would basically collapse. I worked and worked and re-did it and re-did it, and it would never work.
Deflated, I called my handyman and asked him if he could put it together. He came over, took it apart, and then back together and charged me $50. It was a bargain!
The problem is, it still wouldn't work right. It still kept collapsing on the same side. I knew then there was something wrong with it, because the handyman would know how to assemble it.
Well, before long, I trudged it out to the trash, and someone else picked it up. Buh bye!
But the cost didn't go away. My money was so strapped, I only paid the minimum on it. Over the months and years, the fees and late charges added up, and now I owe about $2,000. That is definitely one of the debts I am paying off this year, no excuses.
At least I can say I did my part to keep K-mart solvent.
Stupid tax!
