One Credit Card Down, Four More to Go

When I first started my journey, my lowest credit card balance was $1,800. Well, I’m super excited to be able to say that debt is dead and gone!

$30,165.56. That’s my number now.

Since last month, I’ve been able to reduce my debt by $1,786.20 and I couldn’t be more excited. My next goal is to pay off my CareCredit card which only has a balance of $200.

Sidenote: It’s from a dental procedure I had last month. I had to make a choice. I could have paid cash for the procedure and put off my goal of paying my first credit card for another month. Or, I could charged the procedure, with zero interest, and pay that balance off next month.

In the end, I felt like I would feel more accomplished if I completed my initial goal, so that’s what I did.

So far, no regrets.

My $30,000 Journey to Debt Freedom

Hello out there everyone. I’m super excited to start this blog and a new chapter in my life. But, along with that comes a brutally honest assessment of my finances. Deep breath…

$35,379.73. Three months ago, that was my number. That’s how much I owed. $7,950 in credit card debt. $5,642.36 in student loans. And, I had just acquired a $21,787.37 auto loan. Exhale…

It was a ton of money, and my creditors had me believing it was no big deal. At least that’s the impression I got each time they increased my credit limit or offered me special interest rates. But, it was a huge deal. It was $635.84 a month worth of a huge deal. And that was me only making minimum payments, which I can’t in good conscience recommend anyone do. I needed a change.

And that’s when I came up with a plan to get rid of my debt.

$31,951.76. That’s my number now.

In a little over three months, I was able to reduce my debt by almost $3,500 and here’s some of what I’ve been doing.

How I’m Reducing My $30,000 in Debt

1. I found out where my money was going.

The first thing I did was go over my bank and credit card statements with a fine-toothed comb. It didn’t take long for me to see where my money was going. Restaurants. On average, I had been spending $20 a day on fast food and nearly $100 a week at Pappasitos and Lupe Tortilla. More than 60% of my credit card charges went to restaurants or Jamba Juice. Yikes!

My other expenses included my tithe, rent, cellphone bill, insurance premiums and minimum credit card payments. I didn’t have any lavish retail purchases or any other bad spending habits. Food was hands down my biggest expense and I needed to change that. So…