Tuesday, July 10, 2007
Works For Me: Paying Credit Card Debts
Ten years ago, my hubby and I were 17,000 in credit card debt. We didn't have anything to show for it. It was just an accumulation of purchases here and there. Bad choices, poor decisions, unplanned spending.
Today, we are debt free. Actually we were freed from credit card debt in about 3 years after we resolved to pay it all. We do have a loan but it's a mortgage for a beautiful home we're blessed with. Other than the mortgage, we are debt free. It's a very good feeling to be debt free.
Here's what worked for us.
1. Once we decided, "that's it, and we'd pay our credit card down to zero" - we started an Excell file to record and graph our debt payment. Visuals always help. As long as our graph shows that it's going down...we're on the right track. We tracked monthly. It's really fun to see the slope going down...
2. We worked our "okole" off. Hubby had to take a second job with the purpose of paying our debt. He kept the 2nd job for 2 years and once we paid off our last credit card, he resigned from the second job. I also did some extra "cleaning jobs" to help out.
3. We attended classes and support group. We attended this class about financing sponsored by our church. We consulted financial experts. We asked for prayers and made our selves accountable.
4. We consolidated our loans so we only had one major credit card to pay. We took advantage of the "zero interest on the first year" promos.
5. We used checks instead of credit cards in all our purchases while we're paying our debt. Now we use debit cards.
6. We prayed and prayed. It really helped. Hubby and I got some unexpected bonuses from work that helped us pay a substantial amount down. It would have been nice to use those bonuses for a vacation or car or appliances, but we used it to pay our credit card instead.
If any of you who stopped by to read this is struggling with credit card debt, I would like to encourage you to make a decision today to pay it off. It's worth it!
For more "Work For Me Wednesdays", visit Rocks in my Dryer.
For inspiration to pay debt, check this blogger out: Blogging Away Debt