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More Than Just the Numbers Has Changed

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It’s always nice to see the numbers change. After all, our goal is to get our pesky credit card debt paid off. I think what I am finding the most interesting right now is how much we have changed. Don’t get me wrong, I love that our debt is going down. I really smile inside when I think about what we used to be like and what we are like now because I believe the change is for the better.

Stuff used to rule our life. A holiday coming up – well, gotta go buy some decorations. Fisher Price came out with a new Little People set today – well, that is a must have addition to our son’s toys that already fill his room. We didn’t have money in our checking account for it so on the credit cards it went.

We don’t put things like that on our card anymore. It’s not just because we are trying to reduce debt. It’s because we know that we don’t need all of that stuff for happiness. The book Debt is Slavery actually was a big eye-opener when it came to stuff (if you haven’t read it, I highly recommend it – see if your library has a copy to borrow). I felt sad selling most of our stuff. It wasn’t because I was going to miss it – it was because we spent so much money on it.

An interesting change is one that I’ve tried writing about before, but couldn’t find the words. I still can’t quite seem to get it out. So I’ll give an example of what changed. We knew that reusable shopping bags were out there but never gave them a second thought. We’d get plastic bags and toss them in the trash (less a few we kept around the house for various uses – but we didn’t use many). It was really starting to bug the both of us so we paid the money to have some reusable bags.

It’s almost like since we were cutting the wasteful spending we were doing – we started cutting other waste from our lives as well. I wish I could convey this better – I’m not sure I fully understand it yet LOL.

Even though our goal was to pay off credit card debt, we have received so much more in return. We are a much happier family overall. That is a wonderful benefit 🙂

Our Current Monthly Debt Payments

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For this blog, I decided early on that I would only really discuss our credit card debt even though we have more types of debt. Credit card debt was the most damaging to our finances, and it really shows when I compare our monthly minimum debt payments from April 2006 to our present monthly minimum debt payments.

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.