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Credit Card Debt Update – $31,965


I’ve been waiting all month to get the statement for Credit Card #2 today so I could update my debt. As you can tell in my little “chart” there is a significant change from April 30. Today has actually been a bummer of a day for other reasons (I’ll write later on that), but seeing that number puts a smile to my face.

I have to give a lot of credit to my tax return. It really gave a jump start to reducing my debt. Now, from this point forward, the only way I will be able to reduce that number is from our income and possibly from selling some personal items. I no longer have large chunks of money coming to use towards debt.

I admit, I am a little nervous but I’m so ready to see where this goes and see what happens. I wonder how I will feel when I can write, “Credit Card Debt Update – $0”. I smile ear to ear just thinking about it πŸ™‚

April Monthly Debt Payments


I’ve mentioned before how it can be a motivator to add up all of your minimum monthly payments to debt. For me, seeing that number helps me realize how much money could be available for other things in life, like saving for retirement. That’s something I hope to be able to start soon.

I’ve added up the April payments, and here they are:

Mortgage: $337
Auto Loan: $258
School Loans: $208
Credit Cards: $950

The grand total $1,753 / month. That’s 52% of our monthly gross income.

Assuming those minimum payments did not change (but they will as the balance on the debt is reduced and as I obtain lower interest rates on the credit cards) that would be over $21,000/year.

What an eye-opener!!!

Good News…and Bad News…


Yesterday I received some great news in the mail. My Escrow Disclosure Statement for my mortgage indicated that starting July 1 our mortgage payment would now be $323 instead of $337. That extra $14/month may not seem like much but I am a believer that every little bit counts when it comes to paying down your debt.

Now the bad news…

My frugal glasses took a major blow and are damaged beyond repair. Right now my damaged lenses are in a pair of very ill fitting frames just so I can see to function. I can’t wear these ones out of the house. I do have some older pairs of contacts that I have kept for occasions such as this, so will bring them out of retirement and wear them when I need to. Come Monday morning I will be making an appointment for an eye exam and paying the money for a new pair of glasses.

I guess in a way I feel defeated that my frugal glasses didn’t last longer. But really, they’ve lasted me a year and it was during a time where I would have to put the cost on a credit card. This time around, I will have the cash to get them. It’s the extra cash that would be going to the credit cards to keep with my debt reduction plan, but I have to remember that there will be some bumps along the way to becoming debt-free. You just have to keep your head up and keep chugging along πŸ™‚

$1,775 Extra Paid to Credit Card #2 – Woohoo!


Thanks to the loan from the in-laws that turned into a gift last week – Credit Card #2 has received an extra $1,775 and the balance is now under $20,000!

When I originally set the goal date for the credit cards to be paid off, I was including that big payment. When I was reminded about that loan I was a little concerned about being able to meet the goal date.

I am feeling much better about things now that the money was able to go to Credit Card #2 as originally planned. Now, I just have to keep up the $1050/month payments to all of the cards to keep with my debt reduction schedule. It will be rough – but I think it can be done.

Credit Card Debt as of 4/30/06: $34,070


Since I’ve started blogging in February, my credit card debt has been reduced by $3,544 (the credit card report has been updated as well in my progress to date). Thanks everyone for helping to keep me motivated!! I am seeing a change in my debt situation and I like it πŸ™‚

Things were made even better yesterday when my husband’s mom called. She just got the $1,775 check in the mail for the loan they gave us when we purchased our home. I guess she really didn’t need the money and she said she wrote all over the check voiding it and will be sending it back. I guess her bringing up the loan didn’t mean they needed it. We were also told it was officially a gift.

If you happened to stop by late last night you would have noticed that my net worth actually increased even further to $-50,240. I went in and updated the numbers. I’m only $240 away from reaching the $-50,000 mark. Woohoo!

Overall, April was a great month and May is off to a great start as well. My tax returns have been a great “booster” to paying down some debt. Going forward, it’s all going to be about cutting costs, being frugal and living simple. I have to devote a large chunk of my income to debt if I want to reach my goal. I also may be looking into ways to consolidating my debt to obtain lower interest rates.

Stay tuned πŸ™‚

Big Announcement – The Goal Date is Set


Goals scare me, because I don’t like to fail. I have been toying with naming a date to be credit card debt-free by and I have decided to just go for it.

Thanks to the debt calcuator at CNNMoney.com, it was determined that I could be debt-free in 3 years. Just imagine…$37K of credit card debt gone in three years. I like the sound of that πŸ™‚

The amount I have to pay monthly is a little over $1050/month (just for the credit cards – not counting other debt). That is a large chunk of our net monthly income, but it can definitely be done. Let me rephrase that…it WILL be done.

So, without further ado …

Target Date to be Free of Credit Card Debt: May 1, 2009

My game face is on, and I am ready to show my credit cards a thing or two πŸ˜‰

Tags: card+card, debt

I Can’t Hold it in any Longer …


I was trying to wait until I have the time to write a longer post and have a screenshot and everything – but what the hey, I can’t contain myself …

Credit Card #4 is Paid Off!!!!!!!!

So, the only remaining credit cards are #1, #2 and #6.

Thanks everyone who suggested that I target Credit Card #4. It sure feels good to see it at zero and I can’t wait to see if they offer a nice balance transfer offer πŸ™‚

Tag: credit+card