Milestone: Credit card debt under $2000!

My July snowball brought my balance down to $1984. Finally, I'm under $2000! This is huge for me because I have paid off $2000 in CC debt many times before so I know it can be done ;(

The difference is that this time I have a financial plan in place so that won't have to use credit cards again.

Frugal goal update: Spent $2.64 on breakfast at McD's with a friend. This was an out of the ordinary treat. We walked for an hour and then had iced lattes and breakfast.

Total spent $3.97. I'm getting awfully close to $5!

Frugal goal update

Now that I have announced that I will try to spend under $5 this week, I want to buy more! I'm sure there is a psychological explanation for it, but I think that it's pretty funny. I'm over 50 for goodness sakes, not a spoiled child. Self awareness is always good, right?
Spending so far: $1.34 for bread at the discount store.

Planned spending for the rest of the week: bananas, breakfast at McD's with a friend (she has a coupon). This will be close.

Frugal goal

My frugal goal for the week is to not spend over $5 more on groceries this week. DS is away at running camp until Thursday so I should be able to eat well on what I already have in the refrigerator--plenty of lettuce, veggies and hummus. I also have pasta and frozen food. I should be eating pretty well.

Two Years ago

In late June, 2007, I read Dave Ramsey's Total Money Makeover. Before reading this book, I really thought that I was in pretty good shape financially because I was able to make my monthly payments. I had 2 zero interest credit cards that I had used for big purchases, one CC with a $1000 balance that I was unsuccessfully trying to pay down, and one card that I paid in full each month. I also had a $3000 car loan.


What I didn't realize was that I was getting farther and farther in debt each month. I was spending more than I brought in. I was pretty upset and ashamed that I hadn't seen what was happening.When I calmed down, I started on Dave's Babysteps. For the first few months, I got even further in debt because I wasn't used to living on that month's income.

My journey has been pretty long, but I can see light at the end. I think that in 4 months, I will be finished with Babystep 2. Lessons I'm learning along the way--tracking my spending is important for me because I tend to be unrealistic in my estimates, saving for unexpected expenses and irregular expenses decreases stress, and accountability really helps me stay on track.

I am enjoying this journey and I have made progress in reducing my debt. Hmm...maybe the journey is more important than the final outcome. Interesting....

Decision

I decided to pay down my last credit card instead of saving for a car for my son. Thank you to everybody that gave input to my decision. Paying down the credit card is the responsible thing to do for my financial well-being and I think it is also the best decision for my son. He is choosing not to get a summer job because he is focusing on training for cross-country season. One consequence of not having a job is the inconvenience of sharing a car with your mother. I think that this will be a valuable life lesson.
$2600 left to pay on the credit card. My original goal was July 1, but that is not going to happen--too many Murphy visits--plumbing, car repairs. My revised goal is to finish by October 15.

Capital One--Canceled, but not gone

I just called and cancelled my Cap 1 card because they were changing the terms of agreement.
My current interest rate is 5%, and it was increasing to 13%. If I opted out of the new terms, my card would be cancelled., but my current rate will apply while I pay off my card. This sounds almost too good to be true--that I can keep the 5% rate. I'm holding on the the written notice, in case my rate does go up.
My new goal is to pay off the card by Oct. 15. This sure is taking longer than I thought!

Indecision..

I haven't posted in a while because I haven't been able to decide whether to keep paying down my credit card or save for a replacement car for my son, who wrecked his car in the spring. I still haven't completely decided, but I'm leaning toward not replacing the car even though sharing a car will be very inconvenient when school starts. Paying down the credit card makes more sense financially.