Friday, January 14, 2011

A Good Start

Paying off debt is hard.  When we started this whole whack job idea back in May of 2010, I had fantasies of writing out massive checks to my creditors and being able to breeze through life without the stress of money.  What I forgot was that we had to put in some real effort to get ourselves into the situation we are in, so it stands to reason that we would have to work even harder to dig ourselves out. 

That being said, we're making progress!  When we started our Total Money Makeover, I wrote a blog post where I confessed, in big red numbers, that we had $41,740.37 in consumer debt.


We read Dave Ramsey's book and started to make changes.  According to his plan, we made a list of our debts from the smallest amount up to the largest and started attacking them with as much firepower as we could muster.  Our debt snowball grew as we paid off one loan, then a credit card, then another credit card, then a student loan, and then yet another credit card.  We find we really enjoy destroying our credit cards in photos.  Which reminds me, I need to come up with something creative to do for annihilating the third card.  Fire, perhaps?

So where are we at now?  We are down to only two, count 'em.....two consumer debts! We still have one credit card to pay off and finally what I like to refer to as "The Big Kahuna" - my student loans.  It may still seem like a lot, but we know that if we keep at it and refuse to give up, it is possible to be debt free.  We've gone over budget along the way and come up short on cash.  I know I have over-spent and under-saved.  I know we haven't been as "gazelle intense" as we should have been and perhaps we should have scrimped more in order to throw more money at our debt.  At the end of the day, I am pleased with our progress and I hope we can only improve.

Since May 1, 2010 we have :
  • Paid off $6,205.35 of consumer debt!
  • Saved up nearly $7,000 to replace our roof!
  • Not gone one more penny into debt!
Oh yes, we have a long way to go before the remaining $35,535.02 is a distant memory, but at least we have a good start.

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