In January, I declared war on our credit cards. With over $11,000 dollars in credit card debt, I mapped out a basic plan to accomplish the goal of being free of credit cards by 2012. And in the spirit of complete honesty, I’m going to share the nitty gritty details with all of you. (*Names of creditors have been changed to protect the
It’s been nine months since we began our war on debt.
And in that time, we have cut our credit card debt by 60%. That’s approximately $7000 paid off in nine months. It’s not quite where we wanted to be at this time, but that’s a lot of freakin’ money so I’m still going to count it as a win.
Plus, in October, we will start paying down our last credit card. Which, of course, carries the largest balance. But I am super stoked to be only making one payment per month and seeing the balances drop even quicker.
With our new and improved budget, we should be able to direct about $850 per month towards our credit card debt. So, I’m guessing out new debt free date should be around February or March.
And I’ve already decided that I am celebrating our credit card payoff by getting our bathtub refaced. Because it is dis. gus. ting.
A huge help in keeping us on track has been our new envelope budget system. Two months in and we are already seeing very positive results. We were only over budget by $15 in September, rather than the $100 we were over in August… or the $300 over in July. Gah.
I will say that it took us awhile to adapt the envelope system to fit our spending needs. We began with just a few categories (Matt Spending, Jen Spending, Grocery/Household, Gifts, and Pets) but soon realized that wasn’t enough.
So we broke down groceries and household into separate budgets because I was finding that I would blow all the money on food and be left with about $20 for diapers and cat litter. And I certainly don’t need to be cleaning up MORE pee, so I needed to reign in the grocery spending.
Same with clothing. Originally I included it in our individual spending, but realized that Matt NEVER buys clothes, so when he needed socks, I would purchase them (after he complained about his socks for 17 weeks). It also works out well because some months I need jeans, shoes, and shirts, while he doesn’t need anything.
We are still toying with the dollar amounts a bit, but I feel pretty good about our cash categories. So that’s why I made the committment and ordered fancy fabric pouches from k. mae designs to divide our funds. Because carrying around paper envelopes was a pain in the ass. And these? Just make budgeting fun!
Each pouch is the size of a standard mailing envelope and has a zipper to contain all the loose change that comes along with cash. They are also punched with a grommet and put on a key ring so that they can be kept together or separated if you just want to carry one at a time.
And because Kim at k.mae designs is so awesome, she has offered me a $10 gift certificate to giveaway!
This can be used on any custom creation from dresses, to diaper bags, to hair bows. She does it all, so the options are endless!
Enter to win simply by leaving a comment!
Extra entries can also be earned by:
1) Subscribing to DMB by RSS, email, or GFC
3) Liking k. mae designs on Facebook
4) Tweeting or Sharing this post on Twitter/Facebook (Don’t forget to tag @DearMommyBrain)
That’s five possible entries! (Just be sure to leave a comment for each additional entry.)
Drawing will be held on Wednesday, October 19th at midnight and winner will be notified be email.
I have received no compensation for hosting this giveaway and all opinions are 100% my own. Because I’m a really crappy liar.
*Update: The envelope pouches begin at $5 each, pricing subject to size/fabric choice.
Next post in the War on Debt series: Reevaluating