Starting the new year credit card free!

photo by b.franchina

This morning I sent my final payment to American Express. We’re officially credit card debt free!! In the past year, we’ve paid off almost $5,000 in credit card debt. I’m pretty proud considering how low our income was for a big part of the year. :)

Unfortunately, we still have quite a ways to go before we’re totally debt free — we have a combined total of about $60,000 in student loan debt. :( But we’re a lot better off than we were a year ago. Now I know what works, and I can apply the same principles to our student loan debt.

I’m hoping to have my $20,000 private loan paid off in 2 years. It’s a pretty lofty goal considering it took us a year to pay off less than $5,000 in credit card debt, but we have more income now and we’re getting better at frugal living.

The student loan debt is overwhelming, but I keep reminding myself that I once felt that way about my credit card debt. High balances and high interest rates made it feel impossible to get ahead. But I just kept sending those payments every month, watching the balance slowly decrease until it was manageable.

I’m looking forward to getting those student loans out of my life using the same method.

14 thoughts on “Starting the new year credit card free!”

Sarah F. December 20, 2008 at 11:01 am

Congrats on getting out of credit card debt! My husband and I are looking forward to the day when we too send in our last payment!

Sarah F.’s last blog post..That time of year again: HOA fees

tiffanie December 20, 2008 at 3:28 pm

congrats! that’s one step ahead for you guys. use the same focus and determination on the student loans and you’ll be debt free before you know it!

tiffanie’s last blog post..intriguing guest comment

Corrie @ "Cents"able Momma December 20, 2008 at 7:40 pm

Great job on paying off the credit cards! Just remember how good this feels and keep plugging away on the student loan debt. I wanted to get my student loans paid off before I had kids (since I was planning on quitting work), so I paid off $35,000 in about three and a half years.

Corrie @ “Cents”able Momma’s last blog post..My CVS Trip this Week

kim December 21, 2008 at 12:49 pm

Congrats on the CC debt payoff! It does feel wonderful once something is paid off, doesn’t it! My husband is in journalism (as you said, in the worst possible time to be in this field – 20+ years now), so we’re hoping that he’ll still have a job next year that will allow us to keep paying off the few that we have left. Keep plugging away!!

Dani December 21, 2008 at 9:01 pm

Congrats! We are only one payment away from being credit card debt free as well and it is such a great feeling. Now we can live in the financial current and future instead of the past.

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