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Darren Rowse at problogger.net is having a group writing project and wants submissions in list form. I was trying to think of what I can write about and then it hit me - I don’t have a post yet that lists everything that we are doing to make a dent in our debt.
So, how did we go from over $37,614 in credit card debt to $28,623 in less than 6 months on an income of $45,000/year?
1.) Number one thing - change the attitude! Things didn’t start happening for us until we started thinking positive and started believing that we could make this happen. A positive attitude leads to positive results. Whenever I start feeling blue, I try to remember to repeat that phrase to myself.
2.) We removed all credit cards out of our wallets and put them somewhere safe in our home but also a spot where they are not easy to get to. Some suggestions I’ve heard of are to freeze them inside a water-filled container or lock them in a safe.
3.) We track where our money is going. I use Quicken to track everything and we rarely use cash. Not having cash makes it easier to track things. (If you don’t have Quicken, you can do this using a pencil and paper.)
4.) We found places to agressively cut spending. One of the easier expenses for us to cut has been in household spending. I no longer purchase things to decorate or furnish the home. We are doing fine with what we have and I have learned that we do not need more. One of the hardest is groceries and dining. I’m still working on that one. Overall, we are taking drastic measures to spend as little as possible so more money can go towards debt.
5.) We are working on increasing our income. I have been furthering my education with some classes to earn more at work and my husband is working hard to get his business off the ground. We are trying to increase our worth, myself as an employee and my husband as a self-employed individual (hopefully soon ;))
6.) We use any extra money towards debt. For our tax return this year, it all went towards debt. The income that I will make from my blog will go towards debt. Basically, if it’s not from a paycheck it immediately goes towards debt. I’m also always on the lookout for ways I can make a few dollars here and there (surveys, selling things, etc.).
7.) We worked to reduce the interest rates on our credit cards. This one wasn’t that easy when we started out paying off our debt. Some people can call their credit cards and get their rates lowered. I wasn’t one of them until I started knocking down the balance on the credit card. Then they listened. For more on this one, visit my post here. We also used balance transfers to shift debt around at lower rates and even tried prosper.com to refinance some of our debt.
8.) We figured out our gameplan. We listed our debts and figured out which ones were were going to pay down first. All extra money was shifted towards that debt. There are many different methods one can use (like pay the lowest balance first or even the highest interest rate balance) but remember you have to do what is right for you! We actually are paying attention to a few things with our plan: our credit ratings (trying to keep debt equal between my husband’s accounts and my accounts) and trying to not have too many balance transfers going at the same time due to the risk (like how one minor late payment can skyrocket the interest rate).
9.) We calculated a goal date. I was a little hesitant to do this one, because I didn’t want to set a date and then not make it. But I am finding that the date is keeping me motivated. May 2009 here we come!! 
10.) We are not gonna give up!! There will be times we slip. We sure did end up spending a lot for dining last month and of course I feel bad about it. But it sometimes slip-ups happen to the best of us. Just pick yourself back up, dust yourself off and keep on heading towards your goal.
That’s everything I can think of at the moment. But I’m still learning - there is probably more to come 
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Want to travel more? why not look into airline credit cards and start racking up the mile! You can do it while paying for your everyday bills. Always do a credit card comparison to find the card with the best rates.
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Credit Card Debt
- Starting = $37,614
- Paid Off = $28,750
- Current = $8,864
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- Current = $3,129
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Posted: August 18th, 2006 at 9:38 am
Excellent ideas, as this is mostly about one\’s mindset as well. Our list is up, if you’d like to look… have a great day!
Posted: August 18th, 2006 at 2:11 pm
That is awesome, keep up the good work. I did something similar about 10 years ago. I moved home and put much of my paycheck towards my cc bills.
Posted: August 18th, 2006 at 3:49 pm
Congratulations! I spend the last couple of years getting out of my credit card debt. All I have left now are my student loans and mortgage. Keep up the good work!
Posted: August 18th, 2006 at 6:04 pm
Anyone notice there is conflicting advice out there about carrying cash?
Some experts say to use cash (never use plastic), because studies have shown that if you carry cash you spend less money, because you feel the pain of spending the money, while plastic is so easy.
Then there is your camp where they say no cash at all, so you keep track of your expenses.
To me it sounds like a personal decision on this one. People need to realize what hurts them more to use (paper or plastic).
If paper hurts to part with, carry cash and no debit cards.
If you freely spend paper money but hesitate with plastic, then carry plastic.
Posted: August 18th, 2006 at 7:19 pm
MamaDuck - thanks! So much of it really is mental.
Chris - congrats on getting your cards paid off! It’s always great to hear success stories
Shadows Edge - congrats to you as well! It sounds like you were in a similar situation to us. Once our CC debt is paid, we will be paying off the student loans and mortgage as wel
Ty - excellent point. I’m going to highlight your comment. Thanks for mentioning it!
Posted: August 20th, 2006 at 8:11 am
Great list! Lots of us can really benefit from reading your story. Thanks for posting!
Posted: August 21st, 2006 at 8:09 am
[...] Tricia presents The 10 Things We did to Erase Almost $9,000 in Credit Card Debt in Less Than 6 Months posted at Blogging Away Debt. [...]
Posted: August 21st, 2006 at 10:08 am
Congratulations on paying off $9,000 of debt. that’s truly awesome.
Posted: August 22nd, 2006 at 1:58 am
Never stop hammering the overall rate down. Always try to xfer the highest rate balance to the best 0% intro offer you get. Only apply for one 0% line at a time. Eventually you’re managing all 0% lines. Then you just keep it that way. I haven’t paid a cent to the banks in two years, yet my current balance is $80k. You’ve come down from your high far enough to have leverage now. New credit expands overall credit. You shouldn’t *use* it, but you should *have* it, because it improves your debt-to-credit ratio. Mine is 52%… of $154,450. I use their incredible greed against them. Email me if you want to know more.
Posted: August 23rd, 2006 at 10:02 pm
Ray and King - thanks!
John - thanks for your comments. I plan on trying to keep the rates low, except for my Prosper loan. I sort of gave my word that I wouldn’t pay that loan down until I paid off one of my credit cards first and I still have a little over $6,000 to go. Unfortunately, the low interest rate will expire in November and I’m not sure if I can get it paid off before then. I hope one of my other cards will offer a balance transfer deal. I am hoping to receive better offers once I pay more debt down. The lowest one recently has been for 4.9%.
Thanks everyone for stopping by
Posted: August 26th, 2006 at 4:37 am
[...] 223. Your Credit Card Can Earn You Money by Mooiness 224. 10 Ways to Immediately Start Saving Money by junger 225. The 10 Best Money Moves You Can Make by FMF 226. Five things I would do if I had $20,000 by Patrik 227. Your Very, Very Best Money Saving Tips by NCN 228. Why I Tithe by Nneka 229. 5 Simple Steps to Get the Most Revenue out of Ad Space by Markus 230. 5 Ways MyMoneyBlog Can Make You $100 by Jonathon 231. Fifteen easy ways to save fifteen bucks by John 232. 5 Advertising Programs that Have Earned Me at Least $1000 by Paul 233. 5 Secrets to Fabulous Financials by Single Ma 234. Four Kinds of Money Making Websites You can Start By Yourself by Peter 235. 7 Personal Finance Tips by Tim 236. Top 10+ ways to Save Money and Help the Environment by David 237. How to Organize Your Debts by Donna 238. Extended Car Warranty Do’s and Don’ts by Stuart 239. Five reasons why you should always buy in lots by Danielle 240. The 10 Things We did to Erase almost $9,000 in Credit Card Debt in Less than 6 Months by Tricia 241. List of Important Financial Documents by Jim 242. 3 Ways it costs more being a man by John 243. Three Reasons Why I Might Be Poor When I Retire by HART (1 800-HART) 244. Buying a Car the Right Way by Matt 245. Got a Dog? Here Are 5 Tips on Saving $$$ & Being a Responsible Owner by Financial Freedumb [...]
Posted: August 26th, 2006 at 12:33 pm
[...] 223. Your Credit Card Can Earn You Money by Mooiness 224. 10 Ways to Immediately Start Saving Money by junger 225. The 10 Best Money Moves You Can Make by FMF 226. Five things I would do if I had $20,000 by Patrik 227. Your Very, Very Best Money Saving Tips by NCN 228. Why I Tithe by Nneka 229. 5 Simple Steps to Get the Most Revenue out of Ad Space by Markus 230. 5 Ways MyMoneyBlog Can Make You $100 by Jonathon 231. Fifteen easy ways to save fifteen bucks by John 232. 5 Advertising Programs that Have Earned Me at Least $1000 by Paul 233. 5 Secrets to Fabulous Financials by Single Ma 234. Four Kinds of Money Making Websites You can Start By Yourself by Peter 235. 7 Personal Finance Tips by Tim 236. Top 10+ ways to Save Money and Help the Environment by David 237. How to Organize Your Debts by Donna 238. Extended Car Warranty Do’s and Don’ts by Stuart 239. Five reasons why you should always buy in lots by Danielle 240. The 10 Things We did to Erase almost $9,000 in Credit Card Debt in Less than 6 Months by Tricia 241. List of Important Financial Documents by Jim 242. 3 Ways it costs more being a man by John 243. Three Reasons Why I Might Be Poor When I Retire by HART (1 800-HART) 244. Buying a Car the Right Way by Matt 245. Got a Dog? Here Are 5 Tips on Saving $$$ & Being a Responsible Owner by Financial Freedumb [...]
Posted: September 9th, 2006 at 12:07 pm
Good job. Keep the faith. Stay positive. It’s not over yet. Changing your life is lifelong project. Old habits (spending) may have taken a hiatus rather than died off completely. Be prepared. You have added new things to your life and it takes time to work them into your everyday life, celebrations, holidays and special events. It has been done before, as you well know, and I see no reason you can’t keep succeeding
Posted: September 10th, 2006 at 9:31 am
There’s a big “test” that might be coming up for me actually. I may be having relatives visit. What that usually means is that I spend a lot of money to decorate our house. I guess the only way to describe it would be to put on a show so our family thinks we are doing okay. This year, though, I’m not going to do it. We are who we are, and live as frugal as we do for a reason.
Thank you for the words of encouragement!
Posted: September 15th, 2006 at 8:47 pm
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Posted: December 31st, 2006 at 9:02 am
[...] The 10 Things We Did to Erase Almost $9000 in Credit Card Debt in Less than 6 Months - I sat down and wrote down everything we were doing to pay off our debt. [...]
Posted: April 12th, 2007 at 8:36 am
Great job! You’re on the right track and I have no doubt you’ll accomplish your goals
Posted: April 18th, 2007 at 6:32 pm
[...] The 10 Things We did to Erase Almost $9,000 in Credit Card Debt in Less Than 6 Months [...]