I hope you get some ideas from this post that help you tackle your finances. This blog has been beyond cathartic for me, and I hope it’s helped a few of you. If you’re in a situation like we were (are), get serious about finding ways to fix your problem. Everyone’s situation is different, but I can almost guarantee you can find at least something in your spending habits that will help!
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We all have those friends who make proclamations that we can tell are destined to fail from the moment we witness said friend’s plan of execution. Here are a few of the more common ones I’ve encountered:
Musician
The Proclamation: “I’m going to get serious about pursuing a career in music, and be a Lead Guitarist for a metal band!”
The Execution: Purchasing of “the 100 easiest riffs in rock history” book from the used bookstore and practicing for 30 minutes a week in the garage.
The Result: Lead Line Cook at Chili’s.
Weight Loss
The Proclamation: “I’m going to dedicate to finally shedding these extra pounds and getting my summer body back!”
The Execution: Cookies.
The Result: Beaches are overrated anyway.
Acting
The Proclamation: “I’m going to make a legitimate run at finally being a serious actor.”
The Execution: Booking a commercial for a local Kia dealership in your hometown… in Iowa.
The Result: Iowa.
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There are lots of examples like this, but you get the idea.
So, when my wife and I decided to make the proclamation that we were going to do away with our debt and seek true financial independence once and for all, I was deeply concerned that we would fall into a situation like this where our intentions were pure, but our executions left much to be desired, and thus we’d be in the same mess two years from now.
As of this past Friday however, I’m now convinced we will achieve our goals. Trading in a car that I loved and put so much of my identity into (right or wrong) on a used economy vehicle has helped me prove to myself just how serious I actually am.
While this was the decision that ultimately convinced me, I thought it might be beneficial for some of you in similar situations to see what we’ve done since January of this year (2019 for those who might read this in the future) right up until now:
Credit Cards
When we started this journey, we had 12 (!) credit card and student loan accounts. Here is the breakdown of how we’ve tackled each:
- Toys R Us (29.99% interest) – CLOSED – Paid off. GONE!
- Bank of America (23.99%) – CLOSED – Paid off. GONE!
- Lowe’s (23.99%) – CLOSED – Paid off. GONE!
- Furniture Store (23.99%) – CLOSED – Paid off. GONE!
- Wells Fargo Loan (17.49%) – CLOSED – Scheduled payoff is September 2019.
- Care Credit (29.99%) – CLOSED – Scheduled payoff is September 2019.
- Macy’s AMEX (27.99%) – CLOSED – Consolidated to 12% Marcus account.
- Macy’s Store (27.99%) – CLOSED – Not a typo… we had 2! Consolidated to Marcus.
- Discover (14.99%) – CLOSED – Scheduled payoff 2020.
- First Tech PLOC (13.99%) – ACTIVE – No charges since January.
- Navient Private (7.5%) – NOT ACTIVE – Scheduled payoff is sometime before I’m 80.
- Navient Federal (4%) – NOT ACTIVE – Scheduled pay off is sometime before I die.
- Marcus (12%) – NOT ACTIVE – Not a revolving line. Scheduled payoff 2020.
In total, we have closed all of our accounts but 1, which is the lowest interest rate and has a very low credit limit, allowing us a safety net while we build savings. Of the closed cards, we have paid off 4, and will close out two more before the end of the year. We are going to work as hard as we can to have all of them eliminated by the end of 2021, or 2022 at the VERY latest. By the end of the year alone, we will have paid off close to $50,000 in credit card and student loan debt!
Not bad! So how did we do it? Keep reading!Read More »
Digging Out with Dave Johnson 