The Good Life on a Budget

• Posted by JvW on January 18th, 2009 filed in Credit Card, Debt

On December 30, 2008, we paid off the last $1801.37 on my Mastercard. This was the last card of EIGHT credit cards and the one family loan we count towards our rock bottom credit card debt figure.

Our credit card rock bottom was $38,621.13 in November 2006. In just over 2 years we wiped the slate clean and climbed our way up to zero. It’s an amazing feeling. No more using money on things we already have. No more paying interest. No more credit card debt.

The weight lifted off our shoulders is hard to describe. We have dreamed about this day from the beginning. We have worked extra jobs and extra hours and cut expenses. While we were never gazelle intense, we did focus on our debt. There were months where all we paid was the minimum payments, and two fantastic months where we paid over $7000 each month towards the debt.

We have watched our minimum monthly payments drop from $3350/mo (!!!) to just over $2000. We are almost 1/3 of the way through all of our non-mortgage debt. There is still a long way to go, but none of our remaining debts are anywhere near as bad as the credit cards. Plus, now we are accustomed to paying things off instead of buying things. We have taken a huge step towards our future.

Thank you to everyone who reads this, because you and this blog helps keep me accountable. Thank you to all the financial bloggers who have inspired me. Thank you to our families, who have supported us through the process. But most of all, thank you to my husband, who has (mostly) embraced my overhaul of our finances, and who never calls me a budget nazi although I am sure there are times he wants to.

The best is yet to come!