$60,000 in Debt: Month 8

Friday, January 2, 2015

So many big things happened this month money-wise.  I spent a ton on Christmas shopping, though it's not really reflected here.  Just take my word for it.  It happened.

More importantly, I paid off my Discover card!  Prior to my last apartment, I had never carried a balance on a card.  I unfortunately reached the point where I had to start doing that, but I used it as a good opportunity to get a new card and add another line of credit.  It's a slippery slope once you realize you aren't going to pay it off each month.  I definitely didn't go crazy with my spending, but I probably got a little lazy compared to how I was in the past and by the time I moved out I had a pretty sizable (for me) chunk of money on both of my cards.

Paying off my older card first was a no brainer.  It was gaining interest every month I let a balance sit.  Because my Discover card was new, I had the first year interest free which was extremely helpful.  I was able to spread out my payments without any penalties.  And, as of today, that card has a $0 balance, too!

Now that they are both down to 0 I know that I'll be even better with my spending.  Instead of seeing this ambiguous number, I will see exactly how much I spent each month and it will be easier for me to understand where I SHOULDN'T be spending so much. 

Another milestone this month-  I passed the $15k mark since May!  In 8 months I've paid off over $15000 in debt.  That's pretty awesome.  There is still a long way to go, but every little milestone counts.

As much as I want to throw every penny I earn into my loans next month, I know that I have to focus again on saving.  I very likely only have about 6 months left in my parent's basement and I want to make sure I have a good amount saved up so I don't have to rely on my credit cards again. That was the biggest reason why I had to before. I had paid off so much in student loans that I didn't have enough saved when moving out.  I won't make that mistake again.

1 comment:

  1. I've thought about blogging transparently about our debt, but I think it would depress me to blog about how little progress we make. OR, it would hold me more accountable. Anyway, thank you for being so open about this! Makes me feel less bad about the amount of debt we've been carrying around for the past half decade.

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