As you may have seen, I’ve been hard at work sprucing up my humble little corner of the web. One of the pages I’ve added is my DEBT TRACKER page which will hopefully help chronicle where we are in paying off all of our debt.
After a long discussion on Monday night regarding where we were financially, we decided that our best course of action is to focus on paying off our credit card debt first with a snowball method. (Side note: I seriously hate Dave Ramsey, but occasionally even crazies give good advice).
So, with inspiration and motivation, we decided to tackle our first debt.
Part one was easy. We laid out our debts from smallest to largest based on balance. Our smallest debt was my Best Buy store credit card. Early on in my young adult life, I remember hearing that you should never, ever get a store credit card for any reason. Everyone warned me about the high interest rate, stiff penalties, and major hit it would be to my credit. But then, in 2008, I was a poor, but working, college student with a broken laptop.
I was desperate.
I will give myself credit and say that I was pretty savvy about the first year not having interest payments. I insisted on paying triple the minimum payment. Doing this for about 6 months, I paid off about half of the debt. But having a $25 minimum payment made this my “forget about it” card. And that’s what I did. I set it to autopay and put $25 in my monthly budgets. But of course, the balance loomed and follows me today.
Oh wait. Not anymore!
As of yesterday, Husband and I paid off our first debt. We decided that our saving and checking account balances were enough for three months of emergency funds (rent + minimum payments on outstanding credit cards = $4,500). When we took out our bills due before our next paychecks, we actually had a surplus of about $2k. So, off to slashing our debts we go. The BB card was the easy one to pay off in full (but a pain in the ass to do given that their website has less functionality than the Obamacare site).
Now, that $25 minimum payment will go to paying off Debt #2- My US Bank card. And the rest of the surplus will be squirreled away for Christmas gifts.
I think it’s time for a celebration gif.