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How’s Your One Debt Challenge Going?


Remember our June challenge…one debt, paid off this month…how’s it going?

  • Have you found small ways to save money to put toward your debt?
  • Have you made any extra payments toward your debt?
  • How are you feeling about this challenge? Are you still in or has life happened and knocked you for a loop?

My goal is to finish off paying off my credit card. While the high balance has been $5,000, at the beginning of this month, I had it down to $2,000. And I switched to cash only spending to prevent me from adding to the balance at all.

This week I will make a $600 payment toward the balance. Woot, woot! With 2/3 of the month still to go, I’m still fighting to earn the additional $1,400 I will need to get it to a $0 balance.

I want to hear how your June challenge is going. How can I support you?

How I Use My Credit Card


There have been lots of questions and confusion in the comments of my latest budget post regarding my credit card. Rather than responding to all the individual queries, I thought I would clear it up here.

Credit Card Details

My line of credit on my only credit card is $5,000. This past fall, I was able to pay down the rolling balance from continually maxed out at $5,000 to $3,700. And I’ve kept the maximum balance at that $3,700 range for the past few months.

How I Use It

I use the credit card as a rolling line of credit. Meaning, I use it but pay it off immediately. And I use it a lot every month. I pay a number of my monthly bills with it as well as use it for gas and groceries.

This is why I don’t have a minimum payment for the credit card in my budget. I pay the minimum in my usage and payment strategy. But have been good at no longer growing the debt this fall.

My Reasoning

I realize that this is not the recommended use for a credit credit. But I do this for two reasons:

  1. One it gives me added protection from having my bank account cleared out again. (This has happened at least twice in the last 4 years.) I am very careful about using my debit card or anything that has direct access to my cash.
  2. It also allows me to keep paying on this debt and not growing it any further.

I hope this clears up the questions about my credit card, why I didn’t budget a minimum payment for it and how I use it. If there is anything I missed, please ask in the comments and I will do my best to answer.

I do know that I am not willing to close this last credit card account, even when I do get it to $0. But I will definitely always have the cash to pay it off. I just feel safer using it when traveling and for the added security with larger purchases, car rentals and more.