I just want to pat myself on the back a little

[NoNo]

I just need to take a moment to boast a little, because I feel so awesome. At the beginning of last year I decided to do something about the debt that was beginning to overwhelm me. Too many nights were spent laying awake wondering how I was going to get out of the hole. Well, this morning I sent in my final credit card payment! I also paid off a student loan and a loan from a family member when I needed a new car. I added everything up and it's nearly $20,000!!! And that's just the stuff I paid off. I have another student loan and my car loan, but those are manageable and the car gets deducted from my paycheck. If I include payments on those, I'm up to $30,000 paid off in 2 years. It took things like staying home when my friends were going out, turning the thermostat down in the winter, growing a garden and learning how to can, and taking every odd job I could find including consulting, baking, and soap making, but it all feels worth it now. I look forward to a new life of saving ahead for purchases, and having an emergency stash for those unexpected things that pop up. It will be nice to get my tax refund this year and not have to immediately send it to a credit card.

What a superb way to start the new year. I'm doing a happy dance in my jammies now!

[redrhodie]

Congratulations, NoNo! Well done!

[ridenread]

Well done. That is quite an accomplishment

[OakLeaf]

Good job!

[NbyNW]

Congratulations! Sounds like you've picked up some fun, creative & money-saving talents along the way, too! Keep up the good work.

[smilingcat]

Congratulation!!! WOOOHOOO!!!!

Just keep it up and don't let yourself get into that hole.

smilingcat

[NoNo]

Congratulations! Sounds like you've picked up some fun, creative & money-saving talents along the way, too! Keep up the good work.

Thanks everyone! It feels so good to have that burden gone!

I really love the new skills I've acquired and hope to learn some more. It's kind of nice to be self-sufficient. The response to my soap making has surprised me, and I'm hoping it turns into a steady source of pocket change.

Smilingcat - the last time I paid off my cards, literally 20 minutes later I got a call saying my car needed a new transmission. All about a week before I was leaving for Italy After I paid for that, the car still didn't run right and I had to get a new one. That pretty much dug the hole for me, though moving didn't help, either. This time I have a car that works and no big trips in the immediate future. Fingers crossed there are no nasty surprises!

[Maxxxie]

Well done, NoNo! Feels good, doesn't it?

Max

[badger]

awesome! so envious!

for a very short time in the summer, I was actually in the black. Had everything paid off, then I decided it's time to upgrade my car and back in the red I went. It ended up sucking up more money than I thought, then I needed this and that and I'm back where I started...

[Aggie_Ama]

Awesome! DH and I are starting to look at ways to climb out of our own hole.

[Irulan]

Awesome! DH and I are starting to look at ways to climb out of our own hole.

www.daveramsey.com

great program, advice tips, etc for reducing debt and living debt free.

[blackhillsbiker]

Hurray for you!! That's a great feeling! Happy 2010!

Deb

[KnottedYet]

Congratulations, Nono!

What a wonderful thing to do! You deserve the pats!
I paid off my credit card this year, finally. Man, what a feeling! I still have a student loan and a car loan to go, but those should be done in a little over a year.

Congratulations, and Happy New Year!

[NoNo]

Awesome! DH and I are starting to look at ways to climb out of our own hole.

I didn't follow any particular system, but I took some tips here and there from various articles I read. The first thing I did was create a spreadsheet and track every single penny spent during the month. Things were color-coded so I could see if it was for a utility, gas, groceries, miscellaneous, etc. Miscellaneous was colored bright red so it really stood out when I was spending money I probably shouldn't have been. I tried to set a budget of sorts to kind of cap off how much I would spend on gas or groceries. I also figured out how much "free" money I had in a month after expenses and earmarked half of that for paying off debt. Then it was a matter of figuring out where to start, which was quite daunting at first. It felt like I owed money everywhere and it was so hard to figure out what should get attacked first. I think I started with my highest rate credit card, paying the minimum on the other card until this one was paid off. When I got money either through a refund or one of my side jobs, I'd put it toward the loan from my family. That one weighed on me heavily and I was eager to pay it off quickly. If there's a small debt you can tackle quickly, do it, because it's a big boost to feel like you've accomplished something and actually see something crossed off the list. And as things get paid off, more and more money can go toward the remaining debts.

That's the approach I took, but different things work for different people. I hope you find something helpful out of all that and I wish you luck on your journey. When I figured out how much I could put towards debt per month, I estimated how long it would take me to pay everything off. That prepared me mentally that this was a long-term event. As much as I wished it would disappear overnight, I knew it wouldn't I had to be prepared to stick with it. Things like new tires and a computer popped up and delayed the process, but that's life. I always kept the long-term goal in mind, and I think that will be important to you so that you don't give up when those things happen. MSN has a forum in their money section dedicated to women trying to pay off their debts. Maybe you'll find some inspiration there. Good luck!

[lph]

Wow, that's really impressive. Good for you for persevering, and congratulations!