I owe much less now than I did in June when I started frequenting this board as a result of transferring balances to 0% interest promos and of making a committment to myself to pay down my debt...goal: credit card debt free by 04/02. I'd like to get a feel for how many of you, in addition to trying to "get higher scores" and/or more credit are actively taking steps to get out of debt and how it is going for you. What sacrifices have you made to accomplish this? What set-backs have you encountered? Do you have a goal date in mind? Have you been paying a set amount every month to accomplish this or have you been paying what you feel you can as you go along? Have any of your cards rewarded you or tried to entice you with other credit opportunities as you've paid down what you owe them? -------------------------------------------------- Here's my experience. I have been paying down my debt at a rate of $1300 a month since July. In October I took a hit on my income as a result of Sept. 11th (sort of a demotion, hopefully temporary) and now have additional expenses as I now have to commute to another city to get to work and pay for hotel rooms when I can't get back home. This month I was only able to pay $800 so now I feel like I'm behind on my plan. The good news is that I have a scheduled raise taking effect in Jan which should help me get back on track. Unfortunately, I now have to pay more for my medical/dental/life insurance and this month I will have gifts to buy for X-mas so I expect my payoff amount will again be short of the $1300 I had been paying. The hardest part of the 'plan' is that as a precautionary measure I DO NOT go near stores and, although I still have 'wants' I have to try very hard to put them out of my mind. Most of my 'wants' are for improvements and furnishings for my home rather than anything for just "me." In the past I would frequent Estate Auctions, Antique Stores, and Consignment Shops looking for special unique items for my home. This was kind of a form of entertainment for me and I miss doing this but at this stage I don't feel I can trust myself to not buy anything. My shopping since July has been only for groceries and absolute necessities along with personal care expenses such as haircuts, etc. I've even stopped buying books which was a big part of my spending before. I've started going to the library again <grin>! Other things I've cut back on is phone usage, dining out, and movies. So far I've not received any incentives or APR reductions but I've not asked yet. I am waiting until three of my new cards hit the six month mark, which is soon, to begin asking for reductions/higher limits. Once I reach my goal my plan is to buy a new car and to turn the $1300 I've been paying per month against my debt into monthly investments for retirement. What's your story?
My plan is to begin paying 1200 per month at the first of the year and pay of my credit card debt by the end of 2002. I would like to get a new car as well, but getting out of debt has a much higher priority. I'm with you on the "not going near a store" thing because that has gotten me into trouble I have to say, other than food and the regular toiletries, there is nothing that I need or want right now, so I can go without shopping till I drop until at least early summer, and then it will be cash only. Good luck!!!!
Thanks for sharing Newcomer and good luck. Hopefully you and I will reach those goals and get rid of any credit 'anxiety' we may feel now. I'm looking forward to having it (the debt) lifted from my shoulders. Anyone else making any big efforts to get out of debt?
Hi Mist, Great post! I am paying $550 a month for the next year to totally eliminate CC debt. Then I'll snowball that amount, God willing, into my car loan and pay it off a few months early. Then I'll sock that into savings and a house fund. I have a nice Excel spreadsheet that I created to track my progress (or setbacks). As far as discipline, it is tough, but I know my weak spots: expensive dinners, books, gifts, airline travel (LDR with boyfriend). I have totally cut out air travel, am trying to budget for gifts, discovered A1books.com for books, and force myself to use my debit card for consumables (i.e. food or anything that I can't see a month after buying it). Some months are better than others; right now *more* months have been better than others so I'm generally happy with my progress. It had been a long time since I did any home improvement to my apt. so I gave myself a nice Christmas present with an area rug and runner, wich set me back a bit in the schedule, but I'm not complaining too badly.
Marci, Do you feel that having the debt has placed undue stress on you? I do. I'm looking forward to not having that hanging over my head. I think ridding myself of as much stress and anxiety as possible in all areas of my life is going to be good for my health. I think for most people, financial worries probably are near the top the list of things that are most stressful.
Yes, I do. I also realized that it just plain feels better to have a *true* e-fund rather than a CC e-fund. I can't wait until that becomes a reality for me. The stress of having unmanageable debt overtakes the temporary pleasure of buying something I may or may not not need. So, that kind of fear makes me choose my purchases carefully and, if I put them on credit, makes me figure out how to pay them off quickly (my rug will be payed off in two months, for example). I have a lot to learn Mist, but life is supposed to be lived and not slaved away paying for something I bought 15 years ago. I'm envious of those Motley Fool people who retire at 45 or change jobs based only on personal satisfaction and not financial need. My goal in being on Creditnet is to rapidly inflate my score with increased credit limits so that I can get the 0% apr cards and pay the debt down. I no longer even use 3 of my credit cards. Nice post, and I sincerely wish you the best in your debt reduction journey! "owe no man nothing except love..." Apostle Paul
