I created a spreadsheet on June 7, 22 that contained the following information: CC Name, Limit, 30% of Limit, Balance, APR, Minimum Payment, Due Date, Last Payment Date, and Interest. I transferred all of my debt to as few credit cards as possible because they all started providing 0% APR on transfers after my debt dropped to $19,000. I then began making payments on the cards with the lowest balances. I made the minimum payment on each, rounding up to the next full dollar. I used 20–60% of my income to make payments as soon as it cleared.
It took me twenty-six months to pay off my credit card debt.
To begin the year, my girlfriend and I owed between $24,000 and $25,000 in debt. We’ve been working nonstop to pay it off. It wasn’t simple because my fiancée had a difficult time at the beginning of the year finding a job she loved, and now we are in flames with little over $9,000 left. As I’m sure you do, we are already breathing easier after observing the fruits of our perseverance and hard work.
I could have paid it off sooner in the year, but I wanted to make sure I had enough cash on hand in case of emergencies or my car’s (198,000-mile) depreciation. I have a long way to go before I can change my spending patterns.
The best way to improve spending habits is to avoid unnecessary spending. You’d be surprised how much you can save by not using your wallet, credit card, or shopping online. I prioritize spending on essential items, especially those that are durable and last for years. For example, I bought 5 pairs of Levi’s jeans today, which will last me about 3 years. I do the same for shirts, shoes, socks, and underwear buying once to last and then not spending on these items for as long as possible. I always look for good prices, and this strategy has cut my clothing expenses in half.
Congratulations! Keep moving forward; accept those payments and start investing! Excellent work to cover all of stuff.
Is switching to a credit card with 0% APR genuinely worthwhile? I have 0% APR on a new card for a short period of time, however mine has transfer fees. Should I actually use this, paying the fees and using my entire credit limit on it?
It’s far better to pay 3 or 5% than 21-28% interest on your credit card over the course of a year.
Many congratulations! Even though I’ll be paying it off a few months later than I had anticipated, I still consider not running it up again to be the true success.
Good. I can really hit the cards harder than I have been once I pay off my cars. Since my girl hasn’t been able to work since 2020, I’m hoping she receives her disability because I’ve been finding it difficult to pay off these credit cards even if we don’t use them.
I believe I never missed a payment until 06/08/year, at which point they increased it by 14%. I threatened to stop paying them if they didn’t come down, so I stopped (destroying my credit). I was just annoyed that they could put it up without cause. Six months later, they called and said, “0% until it was paid off,” adding, “I’m in Florida & if you can put them off for 4yrs they can’t come after you.” I didn’t pay, but I also couldn’t pay anything or it starts the 4yrs over again.