Since the beginning of 2010 my wife and I have made it a personal mission to get rid of all our debt. We made a plan that we would pay everything off within' 10 months. So far between a little tax return along with some extra money from a part time job we have rid ourselves of the shackles of about $4k in debt. Our end goal is to get rid of revolving credit and our car payment which will free up about $800 per month.
We read books by Dave Ramsey and realize that we need to sacrifice in order to get this done. I encourage all our friends to avoid credit, not to be preachy but even when it's managed wisely I can't think of a reason why someday it won't get the best of you. I hope to report later this year on getting rid of all our revolving credit.
We most likely will close the accounts as well, I know I should leave them open because of FICO scores, but with all the silly fees I have been charged over the years I just think it's for the best that we part ways.
Here is to looking towards real financial freedom!
Good luck to you as well, whether you are paying off a $300 card or a $30,000 conglomerate of debt. I know how tough it is to make a $300 payment to existing debt when there are a million new toys or hobbies you could pick up for that same $300. Stick to your guns, it feels even better to lift the shackles from your back.
One of the biggest motivators I used was I looked at two consecutive months from one of the credit cards I knew I was paying interest on. Take a look at how much your minimum payment went to the principal, then take a glance at what you paid in interest or finance charges. Times it by twelve and get an idea of where you will be in a years time. DEPRESSING.
Good luck, i'm done for now.
