Credit Card Debt Free...finally

Avatar for mclsp7
iVillage Member
Registered: 03-27-2003
Credit Card Debt Free...finally
7
Tue, 04-19-2005 - 3:19pm

Yes, ladies, I am finally credit card debt free. I have paid off the last of them today. A total of $40,000 in 3 years. Of course I still have my $9,000 loan and a $120,000 mortgage (that I dont call a debt). It feels so great to have accomplished this. I am going on maternity leave at the end of the month for a year and will onlly be earning 55% of my salary, so the extra cash that was going to the credit cards will be a big help.
On top of all that, I have managed to save up $1,600 in our savings account. I know we cant live on that for very long should something happen, but it is better than nothing... And I dont intend to stop saving now.
I just wanted to share my happiness and hopefully inspire some of you to keep at it. There is a light at the end of the tunnel...and it isn't always a train.

Miranda

iVillage Member
Registered: 04-17-2005
Tue, 04-19-2005 - 8:18pm
congratulations! Whew! How did you do that? extra jobs, how would you recommend a single (divorced) mom with two daughters do that? one is starting college and that is scary! i am taking my ex back for post minority support and she has one small academic scholarship. I also have a house too. I assume you kept up the mortgage pymets ect during this time? I can see me being debt free (except the mortgage) in three yrs if nothing drastic happens. Wondermous on your good work and I know it was work.
iVillage Member
Registered: 05-30-2003
Wed, 04-20-2005 - 12:43am

Good for you! How does it feel to actually OWN everything you ever put on those cards? :)

Congratulations!
~Lisa

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 04-20-2005 - 10:39am
Way to go Miranda!

All my best,
Danni

iVillage Member
Registered: 11-24-2004
Wed, 04-20-2005 - 12:44pm
Congratulations, Miranda

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iVillage Member
Registered: 05-19-2004
Thu, 04-21-2005 - 10:02am
Yipeeeee!!!!!! What a weight off of your shoulders in time for the baby!!! Congrats!!!
~Nicki
Avatar for mclsp7
iVillage Member
Registered: 03-27-2003
Thu, 04-21-2005 - 11:59am

Thank-you all for your congrats. It does feel wonderfull to be credit card debt free, and great timing with the baby on the way in 6 weeks. For those who asked, here is how I approached it.
First, I stopped using the cards!!!!! Then, I paid off my cc bills from lowest to highest. I used this approach because I felt that the sooner I had one paid off, the more motivated I would be to continue. So while I was concentrating on one, I was paying the minimum on the others. As soon as one was paid off, I would take 75% of what I was paying to it and put it towards the next lowest balance card and put the other 25% in savings. When I started out, I did not have one penny in savings(actually, my savings account was at -$300. Now I have $1650. Once I got to the point of putting $75 in our saving account per month, I kept that amount and any other money went on the cards. Any extra money that was lying around (DH tends to pay for everything with paper money and stash all the change in a jar) was put into the bank once every 3 months and put towards the card I was currently paying off. This amount was sometimes pretty big. It is all the little things that helped. Any time I wanted to buy a hot chocolate (my weakness) I woudl say to myself "I could spend this $3 on the hot chocolate, or the $3 can go in the jar towards my debt." If I didnt buy it, when I got home I would put the $3 in the jar. Mind you, I didnt deprive myself all the time, I still had plenty of hot chocolates.

Every day the first thought when I wake up and the last thought before I go to bed is "Oh my, I dont have any more credit card debt. In about 14 months, my loan will be paid off and I will have another extra $650 in the bank each month. Please give me the strength to continue and maybe one day I will get to take my kids on vacation...and pay for it all in CASH!" I dont want my kids to have to suffer because mommy and daddy dont know how to handle money. I want to teach them the value of a dollar so that they never have to go through what we did.

Good Luck to all.

Miranda

Avatar for cherfer
iVillage Member
Registered: 11-11-2003
Tue, 04-26-2005 - 11:06pm
Congrats! I hope someday I can say the same!