Here We Go

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Today I paid off $2366.36 in credit card debt.

Never. Again.

Ever.

It slips up on you, that consumer debt. A trip abroad with weird exchange rates. Pre-baby expenses. Nights out to eat months and months ago that were never paid off as intended.

Three cards paid in full, to be canceled by Cody when he gets home tonight. One (with a $500.00 limit) to be kept for emergencies but now with a zero balance.

How did we do this you ask?

We’ve become a one car family circa 1950. Hubby goes to work. Mama and the baby stay home and play house.¬†For real. We’re sharing a car.

I had the idea to sell both our vehicles and purchase an older, cheaper one to share back when I was pregnant. Cody was game and we put his truck up for sale . Two months later we sold it for about three grand less than we originally hoped to get. Lesson #1: Vehicles are not investments nor do they represent money in the bank. I wanted to get rid of my upside down loan on my 2012 car with a mere 26,000 miles. Cody intervened with husbandry knowledge and reasoned that we would be taking such a loss getting rid if it that we would be better off to use the funds from selling the truck to knock off a hunk of the loan then push to pay it off quickly. In other word, Dave Ramsey’s baby steps.

So, this morning I took the $8000.00 we made off his truck and paid all our credit card debt and a hefty $5630.00 towards our auto loan. That should knock it down to around $8500.00. Our tax refund will be directed there also. Hopefully we will have it paid off within a year. Then we can get down to business on our mortgage.

I’m going to consciously ignore my student loans for now. Is that ok, Dave? No? Oh well.

Quite the financial new beginning for this new year.