Author Topic: Paid off 43,000 in credit cards today (Read 7626 times)

Freeme · « **on:** March 09, 2015, 07:02:42 PM »

I have just made the last payment on my credit cards. We were 43,000 in debt in our credit cards and even though they were 0% interest we did have to transfer them and pay a fee. 2.5 years ago I decided it was enough and set out to pay off this debt using YNAB. We were overspending by about a thousand a month. Had to cut that out and then bring down our expenses so we could pay about 1500 each month. It's funny I feel relief but not as much as I thought about 1 year ago I knew I would reach this goal so it was just a matter of time. Purchased some T-bone steaks on sale and we are going to grill them tonight to celebrate.
This will be the first year I max out my 401k😃.
My husband fought this quite a bit when I began to make these changes he wanted to keep spending. Thankfully he is on board and happy to be debt free. I took the day off today and went for a hike, got a massage. Can't wait to increase my savings rate as this was a long journey.

scottish · « **Reply #1 on:** March 09, 2015, 07:09:32 PM »

Congratulations! That's alot of cc debt gone.

MDM · « **Reply #2 on:** March 09, 2015, 07:11:00 PM »

Congratulations! Keep up the good work.

GetItRight · « **Reply #3 on:** March 09, 2015, 08:28:13 PM »

Awesome! Congrats on getting it done. I can't wait until I'm debt free and start seriously building the FI stash. On to the next stage of the journey!

Scotch & CPA · « **Reply #4 on:** March 09, 2015, 08:31:17 PM »

Congrats! It's a bit anti-climatic, right?

Freeme · « **Reply #5 on:** March 09, 2015, 09:02:37 PM »

I expected it to be a big deal and we had a toast at dinner but it was definitely anti-climatic. Once I reach FI hope it is better. My guess is it never gets old.
Funny thing is it really took looking at all categories, but the small things are what made a big difference once you add them all up. YNAB also helped to really track where it all went.

countdown · « **Reply #6 on:** March 09, 2015, 10:02:20 PM »

Congratulations! That's a huge deal. Try to keep up the frugal cuts for savings and you'll hit FI in no time.

girly mustache · « **Reply #7 on:** March 09, 2015, 10:32:06 PM »

congrats! you'll feel it later - kinda like getting married - you are so focued on the wedding that after it's over you're kinda let down for a while - later you realize how awesome it was :)

MikeBear · « **Reply #8 on:** March 09, 2015, 10:35:35 PM »

Quote from: Freeme on March 09, 2015, 09:02:37 PM

I expected it to be a big deal and we had a toast at dinner but it was definitely anti-climatic. Once I reach FI hope it is better. My guess is it never gets old.
Funny thing is it really took looking at all categories, but the small things are what made a big difference once you add them all up. YNAB also helped to really track where it all went.

It IS a big deal. You set a goal, and you made it to the end. The journey is always more exciting than the end.

Now, set a NEW goal, and keep up the momentum!

valk001 · « **Reply #9 on:** March 09, 2015, 11:18:23 PM »

Quote from: Freeme on March 09, 2015, 07:02:42 PM

I have just made the last payment on my credit cards. We were 43,000 in debt in our credit cards and even though they were 0% interest we did have to transfer them and pay a fee. 2.5 years ago I decided it was enough and set out to pay off this debt using YNAB. We were overspending by about a thousand a month. Had to cut that out and then bring down our expenses so we could pay about 1500 each month. It's funny I feel relief but not as much as I thought about 1 year ago I knew I would reach this goal so it was just a matter of time. Purchased some T-bone steaks on sale and we are going to grill them tonight to celebrate.
This will be the first year I max out my 401k😃.
My husband fought this quite a bit when I began to make these changes he wanted to keep spending. Thankfully he is on board and happy to be debt free. I took the day off today and went for a hike, got a massage. Can't wait to increase my savings rate as this was a long journey.

Congratulations man! I am in a similar situation as you, having just paid off a car. It is an amazing feeling! Keep it up.

ohana · « **Reply #10 on:** March 10, 2015, 10:24:34 AM »

Great job! Think how nice it'll be to see your net worth increase by that much more each month!

Cwadda · « **Reply #11 on:** March 10, 2015, 11:40:34 AM »

That is truly commendable. People spend their entire lives enslaved to credit card debt - you're no longer one of them.

TrulyStashin · « **Reply #12 on:** March 10, 2015, 11:47:52 AM »

Outstanding. I bet you'll feel it next month, when that $1,500 can go toward your future instead of your past.

MoCoMatt · « **Reply #13 on:** March 10, 2015, 12:05:25 PM »

Quote from: TrulyStashin on March 10, 2015, 11:47:52 AM

Outstanding. I bet you'll feel it next month, when that $1,500 can go toward your future instead of your past.

Nicely put!

James! · « **Reply #14 on:** March 10, 2015, 12:54:46 PM »

Congrats, that is amazing!

As a bonus, you now know you can save at least $18k a year doing what you're already doing. Give it a few months and that'll feel wonderful.

Freeme · « **Reply #15 on:** March 10, 2015, 12:55:31 PM »

It really has been life changing. First using YNAB to get control of our expenses and that website led me to MMM about 2 years ago didn't even know this was possible. One good thing I began putting 3-5% into my 401k at 22 and never stopped so at least I have 260,000 in that account. Trust me many times I thought of taking out a loan or stop contributing but never did. Don't even remember why I started putting money into it but one of the best decisions I ever made. So even though we had all that cc debt I didn't feel broke or hopeless. Just knew we needed some discipline and time. Hope to be retired in 3-4 years. Have about 250,000 in equity in our home in California may sell and move to a lower cost if living than Bay Area.
Thanks for all the kind responses.

Ferrisbueller · « **Reply #16 on:** March 10, 2015, 05:56:04 PM »

Well done - that probably took a whole change of mindset.

Impressive.

Onwards and upwards with that monkey off your backs!

MsPeacock · « **Reply #17 on:** March 11, 2015, 02:17:08 PM »

Congratulations! I have just started my journey out of about 40k in CC debt myself. I hope to be in the same place as you 2 years from now. Very happy to hear a success story!

Retire-Canada · « **Reply #18 on:** March 11, 2015, 04:08:32 PM »

Quote from: Freeme on March 09, 2015, 07:02:42 PM

I have just made the last payment on my credit cards.

I love it! Nice work! :)

-- Vik

EllieStan · « **Reply #19 on:** March 12, 2015, 08:05:12 AM »

Congratulations ! It's very impressive.

dunhamjr · « **Reply #20 on:** March 12, 2015, 09:13:24 AM »

Congrats $43k is a big chunk of debt to have paid off.
I am positive it feels good...(I paid off the last $20k of our HELOC in Jan, thanks to company RSU's being sold).

Its really great that during your 2.5 year payment term you were able to get 0% interest. Paying that fee to transfer the debt will often work out to your benefit especially over a longer term. We just did the same thing for my wife's high interest education loans, we paid $300 up front to transfer... but we will save about $1000 over the next year.

Freeme · « **Reply #21 on:** March 13, 2015, 03:22:11 PM »

I agree, Chase has a credit card called Slate that when you open it has 0 transfer fees and 0 interest for 15 months. The only negative is that it made us feel like there was no rush to pay it off since we weren't paying interest. It felt like a monkey on our back just always there. So the 0% is a good thing and bad. YNAB is what really made me aware of what it would take to pay it down and MMM showed me what was possible and how.

Smevans · « **Reply #22 on:** March 15, 2015, 10:48:54 AM »

Congrats! I dream of being in that position one day.

HappyMargo · « **Reply #23 on:** March 15, 2015, 11:21:11 AM »

Quote from: TrulyStashin on March 10, 2015, 11:47:52 AM

Outstanding. I bet you'll feel it next month, when that $1,500 can go toward your future instead of your past.

I love this wording!
Nice work digging out of that CC hole... now onwards toward your freedom!!

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Author Topic: Paid off 43,000 in credit cards today (Read 7626 times)