About 10 minutes ago I paid off the credit card debt that was producing so much stress in my life.
Right after, I happy danced around the computer and “high 5’d” my husband a couple of times, I am going to sit down and make a master plan and budget for the next two paybacks/ pay downs on this list, because I do not wish to be in this position again.
We went out and bought $400.00 of food supplies and restocked the pantry! Freezer is full from the garden.
Payback = money to replenish our retirement accounts
Pay down = finish paying off the house
New Expense = We must have $6,875.00 x 2 = $13,750.00 yearly in an accessible savings account for our medical co-pays and deductibles. Not having this amount in savings is what got us the credit card debt in the first place. We are also going to do our best to stay healthy!
How did I do this? The same old way that I have paid off every debt incurred by my family and myself over my life time; I spent no money that was not absolutely necessary. ZERO!
Focused on the principle of the loans.
I set up an account for my partner’s bicycle needs and trips, we will now add training food funds to that account, so he will have the funds he needs to make choices about his preparation and tours that bring him so much pleasure.
I need to say Thank you to Vered of Blogger for Hire and Tracy of I hate my message board as both of them write for the site MONEYNING and they referred me to the Get out of Debt e book that is free on that site when one subscribes.
The Get Out of Debt book did not really offer any new solutions, but I did take Ning’s suggestion that I just pick 5 of the list of ideas and process those ideas each day and each expense.
Here are the 5 that I chose:
#1. Focus on the Prize. The prize for me was relief from the pressure, sense of failure, and embarrassment of being in debt. I think my health will improve too.
#2. Debt Snowball. Concentrate on 1 loan or debt at the time and keep the ball rolling.
#3. Get a Side Job. I did get a month long job which got the happy engines revved up and running and I received enough donations and book sales to pay for my blog bills. I am in gear and moving forward.
#4. After paying down debts, do not spend new money – SAVE!
#5. Take Ownership and Get REAL. Celebrate and praise the work that is completed and make a real plan of action to keep the debt relieved.
I am also cleaning out closets and things that we do not use or need any more- opening up. We are only giving the gifts of food for this holiday season (– yes! I am cooking your favorites and I will pack a lunch and supper for cross-country skiing – just in case my kids thought I changed my mind. )
I go over every bill, line by line and found overcharges and bank errors in my favor, which added up to nearly $1,000 in 2010. I put us on a strict food budget and made menu plans that stuck to the seasonal selection.
I have done this before and I will do this again. I am just rejoicing in the relief and happy dancing.
Do you have any tricks for paying down debt? Does having debt make you ill? What makes you happy dance?