Financial confession and debt reduction plan…

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This is the year I am going to finally focus on truly, and I mean truly, getting our main debt in control. It is our only debt that is a problem. Since I took a year to work almost for free in Eastern Europe, bought a new car, got married, traveled with my husband for awhile, had to support us both for over a year when he was a new immigrant to the country, and then again when he changed careers, I have not been able to get a handle on paying down my credit card debt for several years now. This debt is the worst kind. I have made payments and progress here and there-and we even dropped it down by $10,000 but it crept up again when my husband took on a career change.

debtfreesignThis is the year I want to eliminate it once and for all. First step? Admitting on this blog how much that debt is! Then, I will be more accountable, I hope, and more motivated in paying it down. Recently, my husband and I both tackled his credit card debt and by working together were able to get rid of it fast. Now, it is my turn (it is officially in my name but over $15,000 is his!). So, this first post is my financial confession and baseline. After this one, I will give regular updates as to how I am doing over the next several months as we tackle it. Each paycheque the first thing we will do is set aside the funds we need for the next few weeks and then transfer all remaining funds to make a payment towards this debt. All our coin jar savings (this is extra change and bills we set aside without it impacting our daily lives) will also go towards it until it is at least down to $10,000. At that point, I will then use the coin jar to start building an all important emergency savings fund (something I started but then used to pay off my husband’s credit card recently). Other than that, we will have to just be thrifty so more of our money can go towards this debt and we can get rid of it faster!

So, here we start: My hideous debt number as of today is a whopping $25, 005! The first milestone will be to get it down to $20,000 by the end of summer. Wish us luck!

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3 responses »

  1. It is super brave of you to share your “magic number”. If you need any tips or tricks, I invite you to check out my blog and join the 52 Week BINGO Money Challenge. I used it to help me boost my contributions towards my own credit card debt.
    The hardest part is actually facing your situation, which you have done authentically. Good luck on your path toward financial freedom. I know you story will help someone in a similar situation.

  2. Pingback: Update 1: financial confession and debt reduction plan… | I am 34 now

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