We paid off… $3,500 this month!!!!!!!!

We paid the money remaining in savings and had some extra from December being a 3 paycheck month and knocked out a nice sized chunk!

Here are the new numbers:

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $36,084.36
Remaining: $4,193.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $4,193.00
Auto Loan 2: $0.00
Vet Loan: $0.00

Tick tick tick. Counting down!

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $32,498.36
Remaining: $7,779.00
Cash Savings: $2,500.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $7,779.00
Auto Loan 2: $0.00
Vet Loan: $0.00

*Reminder, Cash Savings is in addition to our emergency fund. When things settle next month, the $2,500 will be applied to the student loan.

Once everything shakes out next month and I go back to full-time, we’ll have a better idea of when our exact payoff will be but as of right now…

FEBRURY 2012!

Hubby and I both get an ‘extra check’ in December since it’s a 5 week month, we have a little left over from the baby budget, and we should get a tax refund for the rest.

We are running a year late because life sorta threw us some curves, but it’s almost over.

Can’t wait…

Good news? We are in the black.
Bad news? I don’t know how far.

I’ll know next month.

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $32,415.36
Remaining: $7,862.00
Cash Savings: $4,500.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $7,862.00
Auto Loan 2: $0.00
Vet Loan: $0.00

Hubby has been working a lot of odd jobs lately and we haven’t had to use as much out of savings as we thought. Yay!

So far, we haven’t received any bills from the hospital so I’m crossing my fingers on that one. We should be fully covered… but you never know.

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $32,329.36
Remaining: $7,948.00
Cash Savings: $5,890.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $7,948.00
Auto Loan 2: $0.00
Vet Loan: $0.00

*As a reminder, cash savings is in preparation for costs of time missed from work and from any hospital fees. All remaining funds will be applied to debt.
**Cash savings is in addition to our emergency fund.

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $32,242.45
Remaining: $8,034.91
Cash Savings: $6,590.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $8,034.91
Auto Loan 2: $0.00
Vet Loan: $0.00

*As a reminder, cash savings is in preparation for costs of time missed from work and from any hospital fees. All remaining funds will be applied to debt.
**Cash savings is in addition to our emergency fund.

Yup. I’m starting this debt update with a sigh.

We had hoped to add more money than we did to savings this month but it just wasn’t possible.

Between school expenses, baby room paint and curtains, a few medical bills, and random ‘gotcha’ items, we had to pull $600 out of savings. The good news? We still ended up $200 ahead. Sure, the month could have been awesome without the unexpected bills, but at least we didn’t end in the red!

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $32,173.18
Remaining: $8,104.18
Cash Savings: $5,300.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $8,104.18
Auto Loan 2: $0.00
Vet Loan: $0.00

*As a reminder, cash savings is in preparation for costs of time missed from work and from any hospital fees. All remaining funds will be applied to debt.

**Cash savings is in addition to our emergency fund.

We overshot our expectations and were able to save more than usual. Hurray!!

Our roommates moved out and we didn’t get a rent payment this month BUT, my husband and I both worked side jobs the last few weekends and more than made up for the difference. We added $1,600 to the pot!!

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $32,094.11
Remaining: $8,183.25
Cash Savings: $5,100.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $8,183.25
Auto Loan 2: $0.00
Vet Loan: $0.00

*As a reminder, cash savings is in preparation for costs of time missed from work and from any hospital fees. All remaining funds will be applied to debt.

**Cash savings is in addition to our emergency fund.

Sadly, this may be our last big step month since our roommates are moving out and we will no longer have rent income.

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $31,928.65
Remaining: $8,261.18
Cash Savings: $3,500.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $8,261.18
Auto Loan 2: $0.00
Vet Loan: $0.00

*As a reminder, cash savings is in preparation for costs of time missed from work and from any hospital fees. All remaining funds will be applied to debt.

**Cash savings is in addition to our emergency fund. The amount actually in savings is $4,500.

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $31,928.65
Remaining: $8,348.71
Cash Savings: $2,700.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $8,348.71
Auto Loan 2: $0.00
Vet Loan: $0.00

*As a reminder, cash savings is in preparation for costs of time missed from work and from any hospital fees. All remaining funds will be applied to debt.*

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $31,842.70
Remaining: $8,434.66
Cash Savings: $1,700.00

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $8,434.66
Auto Loan 2: $0.00
Vet Loan: $0.00

*Just to clarify, the Cash Savings is in addition to our emergency fund*

Reductions in financial aid resulted in the highest amount we’ve ever paid for school before. After the books, the parking pass, the health fees, and the remaining tuition, we shelled out somewhere in the neighborhood of $1,400 cash. Eek! No wonder we’re broke!

Thanks to second jobs and raises, we were still able to squirrel away $500 into our baby savings account. $1,900 total between tuition spending and savings in one month? I think that’s a new record for us! Yay for freedom from credit cards!!

My Debt
Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $31,752.04
Remaining: $8,525.32

Broken Down
Auto Loan 1: $0.00
Credit Card: $0.00
Student Loan: $8,525.32
Auto Loan 2: $0.00
Vet Loan: $0.00

CASH SAVINGS: $500

We still have one more month of rent due from my brother (his final move out date is March 7th) so March should be a good month as well.

Darn my honesty.

We went nowhere on debt this month. Why? Shopping Sprees? New TV’s?

Not so much.

Our extra debt payments went to insulating our home and to pay to my brother’s father-in-law (combined with some manual labor) for some desperately needed furniture.

Perhaps the best part of this equation? We have a nearly new fancy mattress. Now, sure, it would be difficult NOT to impress me. Our previous mattress was more than a dozen years old. But for TWO YEARS, I thought I was an insomniac.

Turns out. I’m not. I just needed a new bed.

I would say I’m losing sleep over this update but for the first time since we bought this house, the temperature in our bedroom is over 55 degrees even though it’s 37 outside and our mattress is zzzzzzzzzzz…

My Debt
• Original Debt: $38,495.86
• Added Debt: $1,781.50
• Total Debt: $40,277.36
• Paid: $ 31,662.16
• Remaining: $8,615.20

Broken Down

• Auto Loan 1: $0
• Credit Card: $0
• Student Loan: $8,615.20
• Auto Loan 2: $0
• Vet Loan: $0

Oddly enough, I will miss the monthly reminder that my dog defeated a snake. Er, well, that he survived a snake is a better way to put it.

One bill down, one to go!

• Original Debt: $38,495.86
• Added Debt: $1,781.50
• Total Debt: $40,277.36
• Paid: $31,576.11
• Remaining: $8,701.25
•
• Broken Down
• Auto Loan 1: $0
• Credit Card: $0
• Student Loan: $8,701.25
• Auto Loan 2: $0
• Vet Loan: $0!!

We didn’t expect to have to pay a cover charge for each meal. We didn’t expect the exchange rate to be so poor. And we didn’t expect the high entrance fees to see the sights (and by high, I mean 50 euro – EACH).

The exchange rate surprised us the most. We made the majority of the plans in June – when the exchange rate hit its lowest. We traveled in October… the rate was nearly at its peak for the year.

I budgeted high thinking I would come home with extra money, money I could use to make a large debt payment.

That didn’t happen.

In fact, I had to stop by an ATM three times before returning home.

How bad was the damage? $500 out of our emergency fund. Eek.

Upon returning home, our water heater broke, taking out an additional $300 from the emergency fund plus another $35 for miscellaneous parts.

Add that to the $150 we had to spend on cleaning supplies and replacement curtains thanks to the stupendous house sitter.

Are you following my math?

We have $15 left in our emergency fund.

In the whole scheme of things, if this is the worst of the damage of an international vacation, it’s not bad. I just hate another month of no progress. Minimum payments this month so we can replace our emergency fund fully.

Here are the new numbers:

• Original Debt: $38,495.86
• Added Debt: $1,781.50
• Total Debt: $40,277.36
• Paid: $30,546.19
• Remaining: $9,731.17
•
• Broken Down
• Auto Loan 1: $0
• Credit Card: $0
• Student Loan: $8,781.17
• Auto Loan 2: $0
• Vet Loan: $950.00

My husband and I are both short of vacation hours thanks to pneumonia, pulled tendons, rattlesnake bites, and well… life.

While we don’t think we’ll need it, we are setting aside this month’s extra debt payments until we return. When the dust settles from our trip, we’ll sort everything out in November.

No, we won’t be using this as an excuse to spend, spend, spend, but we need to be cautious and prevent ourselves from haphazardly applying for credit cards to close the gap when we return.

Ugh. This debt update is depressing!!

Original Debt: $38,495.86
Added Debt: $1,781.50
Total Debt: $40,277.36
Paid: $30,415.26
Remaining: $9,862.10

Broken Down
Auto Loan 1: $0
Credit Card: $0
Student Loan: $8,862.10
Auto Loan 2: $0
Vet Loan: $1,000.00

Original Debt: $38,495.86
Added Debt: $1,781.50
Total: $40,277.36
Paid: $30,239.31
Remaining: $10,038.05

Broken Down –
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,038.05
Auto Loan 2: $0
Vet Loan: $1,000.00

We had eight days to come up with $120. Did we do it?

Two words…

Hell yes.

(Sorry mom. I used the word ‘hell’, but in this situation, I felt it was appropriate.)

I don’t think my husband and I saw each other more than twice in the month of July but we did it. Kiss Toyota goodbye.

We are absolutely exhausted… but it’s done.

My Debt
Original Debt: $38,495.86
Paid: $29,371.81
Remaining: $9,124.05

Broken Down
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,124.05
Auto Loan 2: $0 Woo Hoo!

We made it. We’re finally under 10K.

I did a handstand before posting.

My foot is still sidelined from the tendon injury so doing a series of leprechaun kicks was out of the question…

that’s not to say I didn’t try.

I’ve been working nights and, I still can’t figure out how but, my husband managed to pull in some extra work over the weekend even though he goes to school for 5 hours 4 nights a week. Is he an awesome man or what?!?

We pulled in $1,000 in second job money this month. PLUS, for those who are paid bi-weekly like me and my husband, you receive three checks in July instead of two. We had some maintenance and repair bills to pay but we got to add quite a bit of it to our regular $1,000 a month payment.

How much is the check I get to mail to Toyota this month?

FOUR THOUSAND DOLLARS!

This is the biggest payment I have ever made to Toyota. I’m pretty sure they will hate me but really…

isn’t that the goal?!?

Here are the new numbers:

• Original Debt: $38,495.86
• Paid: $27,731.70
• Remaining: $10,764.16
•
Broken Down
• Auto Loan 1: $0
• Credit Card: $0 Woo Hoo!
• Student Loan: $9,193.62
• Auto Loan 2: $1,570.54

What an amazing month for us.

My Debt:
Original Debt: $38,495.86
Paid: $23, 640.18
Remaining: $14,855.68

Broken Down:
Auto Loan 1: $0
Credit Card: $0 Woo Hoo!
Student Loan: $9,285.14
Auto Loan 2: $5,570.54

Perhaps my favorite part was receiving a letter in the mail from Auto Loan 2 reminding me that my next car payment isn’t due until April 11, 2011.

It’s a good feeling.

My Debt
Original Debt: $38,495.86
Paid: $22, 597.28
Remaining: $15,898.58

Broken Down
Auto Loan 1: $0
Credit Card: $0 Woo Hoo!
Student Loan: $9,362.00
Auto Loan 2: $6,536.58

• Original Debt: $38,495.86
• Paid: $21,521.08
• Remaining: $16,974.78

Broken Down
• Auto Loan 1: $0
• Credit Card: $0
• Auto Loan 2: $7,523.61
• Student Loan: $9,451.17

We’re finally more than halfway!!!!!

Overall, the job loss was good for us. We were able to adjust and refocus but more importantly, we were able to prove to ourselves that we could survive our fear. Sometimes knowing what you are capable of is the best lesson.

Here are this month’s numbers…

Original Debt: $38,495.86
Paid: $19,149.13
Remaining: $19,346.73

Broken Down
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,501.52
Auto Loan 2: $9,845.21

Yup, we’re about $100 from HALFWAY!! Woo Hoo!!

We will hopefully receive our tax refund check in March so we should have a nice jump next month.

We’re nearly halfway through our debt free journey!

Original Debt: $38,495.86
Paid: $18,212.82
Remaining: $20,283.04

Broken Down
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,608.58
Auto Loan 2: $10,674.46

For the first time in two and a half months, I’m going to sleep very well.

Looks like we can start to chip away at our debt again. Woo Hoo!!

The good news?

We’re still moving in the right direction – FORWARD!

We decided to pay less on the truck this month and set aside the cash since we were ahead on payments. I’d rather have a little more cash on hand just in case. In light of the current economy, we’re playing it as safe as possible.

Here’s where we’re at –
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,680.19
Auto Loan 2: $11,379.87

The big question…

How long can we hold on without my husband’s job?

Our initial numbers (without unemployment benefits) put us at 8 weeks. Our reductions to debt paired with our cash in savings and unemployment benefits put us at…

9 months.

Had this happened before we had taken control… had this happened before we made the decision to live below our means and reduce debt… we would have made it through a month, maybe two tops.

But now, we’re looking at 9 safe months. 9 months to find a job before things get hairy. Sure we won’t make progress other than minimums and we certainly won’t eat anything other than Ramen noodles but, we can hold on.

I have four words to say –

Thank. You. Dave. Ramsey.

1 – If you are hoping for a huge change… this is not the answer. Not all changes are permanent and/or large. Some adjustments may last as little as 3 months.

2 – Loan modifications are not quick. If you can’t wait the standard 9 weeks for the review of your file and another 5-9 weeks for paperwork processing, you don’t have enough time and you may want to move forward with other options like a short sale or foreclosure.

3 – Give an accurate listing of all your expenses. Don’t exaggerate but don’t minimize either. Have a good understanding of exactly how much you are paying. Keep this information available for when you call the bank.

4 – You will be rejected if you have recently made large purchases or if your credit score is low. You shouldn’t be making large purchases anyway so I can’t say as if I blame the banks for this stipulation.

5 – If you have a second mortgage with another lender, they will likely require you to get approved for the Making Home Affordable Program on your first loan before they will consider a change to your second mortgage. If you are accepted for the program on your first loan, it’s easy to submit the same paperwork for your second mortgage.

6 – This should not be your only option. It’s worth a try, but don’t fool yourself into thinking this will solve your problems.

7 – If your home is not a Fannie Mae/Freddie Mac mortgage, this program does not apply to you… BUT some lenders are still willing to modify other types of loans.

8 – This is a voluntary program. No one HAS to help you. Sure it’s good business sense to lessen foreclosures on the banks part, but if you are a problem child, don’t expect any help. Banks don’t want to keep you as a customer anyway. Be kind, courteous, and polite even if you are frustrated.

According to the bank’s calculations, my husband and I qualify. We are now in the first 9 week waiting period while they review our files. We have stellar credit scores and we haven’t made large purchases in a long time. We are good candidates for an interest rate reduction from the over 7% it is currently, down to the market rates of 5-6%.

Do I really think it will really happen?

No. But it’s worth a try.

That was a mistake.

Today, my husband’s co-worker was laid off and another was reduced to part-time without benefits. It looks like less than a 3 month count down until my husband gets the axe.

I am terrified.

At this point, since we had to clear out part of our savings, we can only last 8 weeks without his paycheck.

That number sends a terrifying chill through my bones.

I’m focusing on the good though:

1. He still has a job today.
2. I lost my job last year and we survived.
3. We’re both healthy.
4. The new seasons of Private Practice and Grey’s Anatomy have started.

It’s all about priorities.

I had NO idea how expensive it is to be a part of a wedding. New rule – no more weddings except for family.

We made no progress and made only the minimum payment on the truck.

Debt Breakdown:
Auto Loan 1: $0
Credit Card: $0
Student Loan: $9,731.52
Auto Loan 2: $11,532.21

I was angry since we had just paid off our card – and because we’ve been burned in the past when we allowed others to use our credit.

Just as I expected, there were problems… but not the kind of problems I had guessed. Not only did the guys pay before they left, they overpaid by $20 each (we’re giving it back).

Our credit card still took a hit from my husband (I’ll talk about the REAL expenses of a cruise in a later post) but we’ll be able to pay it off before it rolls over and starts to accrue interest. We won’t be able to pay extra on the auto loan but at least we’ll be heading into October without credit card debt.

Would I loan money again on my credit card? Even though it actually worked out this time, I’m still SOLIDLY on the no side.

My husband is attending a bachelor party this weekend and the event required one credit card to book the trip for all five attendees (the bill could not be split). Most of our friends know about our recent credit card payoff (maybe shouting that fact from my roof and breaking into song was a clear sign) and naturally suggested that since we ‘had the room’ on our card (as if it were free), that my husband pay for the entire trip and be reimbursed later.

I’m not going to lie. I am upset.

Perhaps I’d be more trusting if this hadn’t happened before with concert and event tickets and in the end, we were always short. People conveniently ‘forget’ to pay or promise to pay later and then get annoyed when reminded. Plus, the credit card will be kept on file in case there are damages to the room or if alcohol is consumed.

When I asked why someone else couldn’t pony up a credit card, he told me it was because everyone is nearly maxed out but us. Um… isn’t that a good reason NOT to loan these people our credit card?

My husband and I rarely fight but this is a sensitive issue for me and I feel like we are opening ourselves up to a lot of potential debt.

Am I overreacting?

Dave Ramsey suggests paying the extra amount on your lowest debt (which would be the student loan) but the minimum payment on our truck is more 4 times higher than the student loan. Plus, the interest rate on the truck is twice as much.

Another good reason to pay more on the truck is to quickly rid ourselves of the hefty payment. In the event of job loss, a student loan can be deferred due to financial hardship – auto loans are not nearly as forgiving.

We’re hoping to have the truck paid off in 10 months or less.

Here we go!

Total Starting Debt: $38,495.86
Total Paid: $16,727.33
Total Remaining: $21,768.53

Breakdown of Remaining Debt –
Truck: $11,934.57
Student Loan: $9,833.96

We’re nearly halfway there. I got an updated payoff date according to our Debt Snowball Calculator on DaveRamsey.com…

December 2010.

We shaved off 4 months so far. Can I get a Woo Hoo?

OUR CREDIT CARD IS PAID OFF!!!!

We decided to use the rest of our extra paychecks to pay off the remaining balance. The checks didn’t cover all we owed but my husband worked some overtime and we were able to clear the rest.

We set aside some money for the bachelorette party in Vegas and the secretly located bachelor party. I would have probably opted not to go to Vegas but the bride is my soon to be sister in law and well… who can say no to Vegas?

Why don’t you sell the truck?

I neglected to explain the reason we’re carrying the truck payment. It’s funny that no one noticed the debt on the truck earlier. It wasn’t until we paid down enough on the rest of our debt to make the truck HALF our total debt that someone asked about it.

My husband had a Chevy that gave out on us a few years ago and he’s one of those few people who actually need a full size truck for work. He tows trailers, fills it with concrete, moves landscaping, etc. A reliable full sized truck isn’t an option… it’s a requirement. We financed a Toyota truck for 26K two years ago and at the time, it was a great deal – or at least that’s what everyone likes to think after leaving a used car dealer.

Fast forward a few years, a few gas hikes, and a few construction related dents later and suddenly…

The truck is more than just a little upside-down – it’s hanging from its toe nails.

We’d MAYBE be able to sell it to someone for 8K… if we made them test drive it in the dark and promise them it got 58 miles to the gallon completely powered by canola oil. But since we’re honest folks, that’s not an option. Plus, we’d have to buy another full sized truck reliable enough to take the 25 – 30 thousand miles a year he drives for work.

Take the nearly 5 thousand we’d have to pay for our upside-down loan and add it to the cost of another truck and it just doesn’t make sense. I’d rather bite the bullet, pay if off by mid-year next year, and have a truck I know works for us.

We didn’t get as far ahead as expected (sounds like a broken record!) but we had to pay $1,400 in tuition this semester. I’m CRINGING at the thought of books.

So where do we stand?

Credit Card: $3,674.06
Student Loan: $9,884.81
Auto Loan: $12,233.12

Total Original Debt: $38,495.86
Total Paid since Oct. 2008: $12,703.87
Total Remaining: $25,791.99

We’re supposed to get some scholarship money for school but because of the California budget crisis, we aren’t holding our breath. If it does come through, we’ll immediately apply it toward our credit card.

We’re finally over the 10K hurdle… now I’m ready to hit 15K!

Credit Card: $4,437.12
Student Loan: $9,935.46
Auto Loan: $12,738.30

Total Original Debt: $38,495.86
Total Paid: $11,384.98
Total Remaining: $27,100.88

Starting Debt: $38, 495.86
New Debt Number: $27,814.62

Total Paid Since October 2008: $10,681.24

Woo Hoo! We’re over $10K

We were hoping to get ahead of schedule and have our credit card debt paid by July but it’s looking like August or September (still ahead, just not as much as we wanted to be) thanks to the California DMV fees and the higher taxes.

But I guess that’s part of a journey.  It can’t be all fun right?

I worked a tough job for a ‘big box store’ to pay the bills while applying for any decent job available. I finally landed a great job in December. 

I’ve struggled with unexpected expenses – like a monthly $150 property tax hike and a 1% sales tax hike…

I’ve made lifestyle changes – the biggest one is my use of public transportation…

I’ve struggled with monotony…

And I paid off my car.

Here is where I am on my debt journey.  Somehow, we’ve squeezed $10,000 toward our debt – $30,000 to go.  Sure I’d like it to be more, but $10,000 isn’t a bad number.

I can’t wait to finish this journey and finally become…

DEBT FREE!!

WE ARE CREDIT CARD DEBT FREE!!!

After 38 months of pinching pennies, increasing our income and riding on the roller coaster of debt reduction – we have finally come to the end of the credit card ride. We are no longer a slave to them. We are free now…and it feels…wonderful.

I feel like I can stand up straight since our credit card debt isn’t pushing us down. A huge weight has been lifted. At the same time, there is a feeling of “What’s next?” We’ve been at this for over three years. You really do get used to a routine and now things will be shaken up. It will definitely be a period of adjustment. With change comes some fear but a lot of excitement!

You may be wondering what we did with regards to our savings. Due to a payment that is taking longer than expected to get to us, we ended up pulling $1,499 from our savings account to make our debt payoff a reality. We should have the money by the end of the month but I didn’t want to cut things too close – I wanted to be debt free by our goal date of May of 2009. As soon as that payment comes in we are going to put it straight towards our savings.

We first thought we would do something grand when we paid off our credit card debt, like splurge on a family vacation (we have yet to go on a vacation with the three of us). After thinking about it, we are going to hold off on that and simply have a pizza party to celebrate. We need to get more money in our savings before we do anything big. Perhaps next year will be the year for our vacation. We’ll see how things go.

I’d like to thank everyone for reading. You have helped to keep us accountable for our financial decisions and without your support I’m not sure if we would have kept going at reducing our debt like we did. You have been here for the rough and sometimes very sad times and helped to keep my head above water during those times. I’ve said it many times before, but words cannot begin to express my gratitude. If I was writing this on paper…you would see little tear drop outlines all over it. I was okay with writing this post up until I thought about all of you and then the waterfall started. Thank you all so very much. You have helped us to make it to this special day.

As things sink in a little bit more, I’ll share with everyone our plans for the future and also take a look back at our journey. I am excited to be starting the next (credit card debt free) chapter of our lives

Quick Edit – I almost forgot to update my NCN Network chart so I just went and did it

While our relationship has been great and I have appreciated your monthly letters of good tidings, I’m afraid I have to end things. You see, I recently met with my tax man and he told me we’re getting back a small chunk of cash which means… all the money I’ve been saving can finally be used to rid myself of you.

I know you have lots of friends like me and you probably won’t miss me but I’m sure you’ll miss the nearly two years of interest I would still owe you if we continued to be friends.

Please don’t take this personally, your service has been exceptional. We’ve actually got along quite well the past few years but it’s not you… it’s me.

I wish you the best in your future endeavors… none of which will involve me.

All my love, but none of my cash,

Rebekah

That’s not too bad. We should be able to get that amount replenished within a few months. With summer quickly approaching we can breathe a sigh of relief that we won’t have huge gas bills for a while and our electricity bill will decrease unless it’s an overly hot summer. We can also spend a little less on groceries since we’re planning on having a garden this year. Nice, fresh produce sounds so good right now!

The end of April sure is coming up quickly!

Before my husband and I married, his wise grandfather sat us down to share what he thought was the most important marital advice we would get, “Always live below your means and never, NEVER buy anything on credit. Save a little each month and pay cash for everything.” As young 20 something know-it-all’s, we married and immediately financed two cars, purchased a home even though he begged us to wait, and continued to use our credit cards. My biggest regret is the fact that I ignored the true wisdom of a man whose sole goal was to help me. I couldn’t be sorrier.

My husband and I started to attend a financial counseling course and felt that, for once, we may have a debt free future. Unfortunately, a week after starting the course, the company I worked for closed and our world took a tailspin. Suddenly those bills we could easily pay in the past looked unreasonably daunting. On top of everything, three large corporations in San Diego conducted major cuts and flooded the market with job seekers.

In searching with intense fervor for jobs in the past, a deep sense of defeat hung over my head and I couldn’t help but feel that I was a failure when I wasn’t able to land them. BUT, there is a light at the end of the tunnel! We buckled our budget, worked odd jobs and long hours, and we not only paid our car payments and credit cards…we paid our mortgage payment too! Even when I am without a job, somehow we’re surviving!

I know what it’s like to feel overwhelmed. I know what it’s like to cry every single day. I know what it’s like to cringe at the sound of a mail carrier bringing another load of bills. I know what it’s like to feel as though I will never break free from the heavy thumb of debt but…

I know I can do it.

I will be writing more tonight about where a portion of the $850 came from…

Our savings is $3,800.

We are past that very sweet point where we could technically be credit card debt-free since we have enough in our savings to cover our credit card debt. Yay!

As tempting as it is, we are not going to use our savings to pay off the last of our debt. At least not right now. We do have a tax refund coming that will pay off some more. If all goes well with our business we will be able to take some more income from that next month (it contributed to this latest chunk of debt-payoff).

We are in the home stretch so we are going to push hard for this. We may end up using some of our savings to meet our goal date of May 2009. We’ll see what happens in the next 41 days.

omg, are you really only $199 away from savings=debt now? Aaaahhhh!

Yeah, it sort of feels like that – Aaaahhhh! Our savings is at $3,800 and our credit card debt is at $3,999. I wanted to be able to pay $199 more but we just couldn’t do it right now. By the end of the month, we should be able to hit that milestone.

Then will come $3K, $2K, $1K, $500. We still have a way to go, but I am getting excited that we are getting so close!

We still have a bit to go, but we are getting closer. The next big milestone for us is the day where our credit card debt equals what we have in our savings. Just knowing that we could pay it off right then and there will feel very nice. At this time, we aren’t planning on doing that. I enjoy having the savings there. That’s not to say we might use some of it to finish off our debt. It all depends on what is happening at the time.

Back in April of 2006, things looked like this:

April 2006
Mortgage: $337
Auto Loan: $258
School Loans: $208
Credit Cards: $950
TOTAL: $1,753 / month

That number still gives me the chills. That is WAY too much money that we were paying a month for past spending.

Here’s what it looks like today:

February 2009
Mortgage: $330
School Loans: $238
Credit Cards: $99
TOTAL: $667 / month

We have reduced our minimum monthly debt obligations by $1,086/month. That is an awesome chunk of change.

When our credit card debt is paid off, our only debt obligations will be to our mortgage and student loan. Our current plan is to start hitting our mortgage because our student loans have a lower interest rate and with ours we can try to qualify for a forbearance if certain hardships occur. My husband and I both have loans and we never consolidated them together. So if something happens to one of us, the surviving spouse would not be responsible for the other one’s student loans. I really don’t like thinking about things like that, but it was a factor in our decision to pay off our mortgage next.

We will also start working on saving money. We’d like a bigger emergency fund, a new car fund and we need to get cracking on retirement savings. It will be a big period of financial catch-up after we’re done paying for past financial mistakes.