Drumroll please…

Ron is now out of debt on his personal credit card too!!!

I can’t believe how fast it happened.  If you will remember, his card had a bigger balance than mine – we followed my dad’s plan and have paid off our lowest card first, which was my card. Mine took a couple months to pay down, and Ron’s balance was twice as high, but his went away in about a month and a half.  How does that work?  Well, a few factors contributed:

  1. I no longer have debt on my card, so I was able to help him make payments on his
  2. Because he didn’t have to help pay mine, the money he would have put toward mine went to his
  3. We got a couple insurance reimbursement checks that we put towards his balance
  4. He got his yearly bonus, and after putting $1,000 of it in savings as an emergency car repair fund for his car (we will undoubtedly need it), we put all the rest towards his credit card
  5. We have been diligent about not adding any new debt to the balances we already have at this point, so we weren’t treading water when it came to making payments

The moral of the story?  Listen to dear old Dad – he knows what he’s talking about.

Obviously, we are not out of the woods yet – we now move to paying down our joint credit card, and it is a giant, ugly, scary monster that’s been breathing down our necks and keeping us awake at night.  But since neither of us has any personal debt to attend to, we can now fight it together.  The balance is more than both our individual debts combined, and sadly we aren’t expecting any windfalls for the rest of the year, like bonuses or tax refunds or insurance reimbursements, which definitely helped us out on the first two.  This process will probably be a lot of slogging along.  But having defeated two smaller debt monsters, we’re ready for the fight.  So bring it, Debt–you awful, sneering bitch.

Oh, and by the way?  I HATE interest.  HATE IT.  It’s like flushing a pile of cash down the toilet.  Here is how much I threw away in interest in six months of 2013 before my card was paid off:

securedownload-12

And here is what Ron spent in 8 months of 2013 before his was paid off:

securedownload-13

(Clearly, Ron had a better interest rate than I did.)

When I think about the things we could have done with that money, it seriously makes me sick.  We spent it, but we have nothing to show for it.  It’s disgusting and wasteful.  If you are a young person reading this and just starting out with your financially independent life, do yourself a favor and stay away from the credit card debt as much as possible – heed our mistakes as a cautionary tale.  It’s like robbing yourself and losing the money.

I don’t even want to think about the amount of interest we’ve paid on our joint credit card so far – it would be too discouraging to look at while we’re in the midst of paying it off.  But I’ll reveal the ugly truth once we’ve finally beat it.

Advertisements