This is a very personal matter to me, but I feel like debt needs to be talked about more. When I was growing up, I was taught that no one spoke of money, or of debt. No one said how much they made at work; no one said their budget for groceries, no one spoke of how much they owe on their credit cards. It was a very taboo subject, money. I don’t want to say I blame my debt on this, but I do believe it didn’t help. I had no idea what debt would do or how it all worked. This debit card looking thing is lending me money? Sweet!
Then comes the 40$ interest charge. FORTY DOLLARS used to pay the company for an afternoon shopping at the mall. It shocked me, but I didn’t stop. I just ignored those charges. I opened my mail, paid my minimum and then tossed the statement in the trash.
One of my credit cards has a $79 yearly fee that I get charged – just to use the card.
I’ve had enough. I am no longer paying a company ridiculous fees to borrow money. I will not borrow money for a new dress, or some bubble bath at Lush. I won’t pay interest on a $20 pizza. This is my snapping point.
So this is how I’m going to do it…
I have a bit over $5,000.00 in credit card debt. I put my debt amount at $5,760.00 to account for interest and the yearly fees in February.
Every time I put $45 towards my debt, I will color in one box. Once all the boxes are colored in, I will be debt free! My goal is to get this finished by May 2017, so 9 months from now.
I have tried to follow the Dave Ramsey way, but since it is very much faith-based, I have trouble following the advice and making up my own rules. So, I’ll make my own “program” for myself. I do, however, use his App and website Everydollar for budgeting.
I’m beyond excited to get started, and I feel like this method of coloring in boxes will leave me motivated to earn money. I can physically see my debt shrinking with my chart.
Once my debt is paid off, I would like to save $5,000 into a fully funded emergency fund. Then, my savings will grow so that I can one day put a large down payment on a 15-year amortization house.
I hope you guys learned a little something from this post, and how I plan to become debt free. If you have any questions, feel free to ask in the comments and I will gladly answer!