It kind of feels like Christmas morning here at the Budget Blonde household, because I just gave myself the best. gift. ever. My credit card debt is gone. My balance is zero. If you couldn’t tell from the italics, I’m beyond thrilled!
Here’s how it went down:
Last month, I wrote a post called “Pay Off Cards Or Save For An Emergency?” where I surveyed all of you and asked which one should go first. You gave me a ton of great advice, and so many felt strongly either way. Well, blog peeps, I am proud to tell you that because of a very intense few months of taking on extra freelance writing projects, I was able to do both!
To remind you, I set a goal for myself to have my credit cards paid off by October 2012, but it’s September and the credit card debt is GONE, baby!
Do you want to know the best part, though? (You know you do.) I’ve actually finished two and a half of my goals for this year, not just one!
Pay Off the last credit card by October, 2012 – $2,000.00DONE! Pay Off Hubby’s Undergraduate Student Loan #1 by October, 2012 – $358.00DONE!
- Put $5,000 in Emergency Fund by December, 2012 – HALFWAY THERE! $2,500 STORED AWAY!
So, I’m really excited that not only did I finish my first two goals early, but I’m also on track to finishing the third goal early as well, which means I can then move on to knocking out some more loans and saving up for a vacation, which we’re going to need after all of this medical school madness.
I should mention that I was almost credit card debt free early this summer. However, some medical bills and a budget that I screwed up pushed back those goals a few months. Still, I prevailed, and you can too with a bit of focus and some flexibility, knowing that sometimes plans don’t always work out the way you’d hoped.
All in all, I’ve been intent on paying off these bad boys for 18 months. If you are looking to do the same, I would simply recommend not using them. See how you do. Understand mistakes will happen. Forgive yourself if you find yourself in a situation where you have to use them. Ignore friends who brag about how they’ve never had a credit card. They will not have the credit history you do, which is required for nearly all major life purchases like cars and a home. Above all, just focus on paying them on time. While I’ve carried a balance for 3 years, I’ve never been late on a payment and my credit report reflects that.
If you have any other questions about the process, drop me a line at cat [at] budgetblonde [dot] com. Even better, if you have your own debt payoff story, please share it in the comments below!