As previously mentioned, my first husband and I were never able to see eye to eye with our finances because he was a spender and valued nice things. I was a saver and valued saving for a rainy day. That experience was traumatic enough that I was able to double down and create and stick to a plan that paid off all our credit card debt we had acquired together. I knew deep down he wasn’t going to contribute or help in any way once he moved out so I decided to tackle it myself and slowly restore my credit. Here are the ways I did it:
Paid off credit cards one at a time
I paid the credit card with the lowest balance because I am someone who needs to accomplish something in order to feel like I’m making any headway. Also, It was nice to have less payments to remember to pay. (A lower balance meant I would pay it off more quickly.)
That’s why I chose to pay off the credit card that had the lowest balance. I didn’t care about the interest rate, only the balance. Plus, I only focused on paying off (tackling) one credit card at a time. I still made the minimum monthly payments on the others but wasn’t concerned about paying them down until I had one card paid off completely. Then, I moved on to the next card with the lowest balance.
You may ask,”How did you know how much to pay each month in order to get it paid off?”
I divided the total balance I owed by however many months I thought it could get paid off and then added the interest into the payment per month.
For example: Balance $300 / 6 months = $50 a month + $10 interest = $60 per month in order to pay off this credit card in 6 months. That felt good…NEXT!
The interest per month will decrease as you pay it down and the balance gets lower, so you can choose to keep paying $60 a month with more going towards the balance or you can stick with the plan and pay $50 plus exact monthly interest owed and payoff when planned.
Sold furniture I didn’t need
Since my ex-husband valued nice things, I acquired higher value furniture that I could sell.
In order for me to get more momentum on my debt, I decided to sell, sell, sell!
I had a huge sectional that I sold and replaced with a hand me down futon. I sold our entire bedroom set and lived with a mattress, box springs, and a bedframe. I sold our dining room table and didn’t replace one because I had no use for it. The list goes on.
Also, selling our furniture was therapeutic for me because it brought me that much closer to closure and acknowledgement that our marriage was really over.
Landed a job that was ideal for paying down debt
As an on-site apartment manager, my townhouse rent, utilities, and internet were all included as part of my benefits package. Plus, I received a regular salary and a bonus based on how much rent was collected. Since I had fewer bills and a competitive wage, I was able to aggressively pay down my debt. I was very disciplined to do so because I didn’t like the job at all but I knew I needed to be debt free. Four years later, I made it!
Once all my debt was paid off and an emergency fund was started, I moved on to a job I loved which ironically ended up being in a position that helped people get out of debt. I was perfect for the job and loved every second of it!
Conclusion
It felt so good paying off all my credit card debt and having a little money in case of a small setback. I learned I could strategize, be resourceful, and disciplined if I wanted it badly enough.
Since this experience, I am very aware of my finances, I have a plan, and I feel great about my financial decisions.
I am also protective of my finances because of the experience and won’t allow myself to live paycheck to paycheck and will not carry a balance on my credit card. I still use credit cards but I use them to my advantage and not because I have to.
I hope this helps you get out of debt and live a financially free life and get some credit payoff advice from someone who’s lived through it. Getting your debt paid and credit repaired isn’t easy but so worth it!
I created a printable credit card tracker so you could get started today!
Leave a Reply