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Credit Card Debt Payoff Journey?

Wow, I had never thought and imagined myself to be in a situation where one of my goals is to pay off debts. My goals should have been to travel the world, live in my dream house and drive my dream car. Credit card debt payoff should not be a part of it.

I had worked my butt off to get a professional degree so I will be able to land a job that has a decent pay. Which I did.

I married a man who has a professional degree and also making a decent paycheck. We do not have any kids yet but we are working on it.

So in short, we belong in the category of what they call DINK(dual income with no kids). Unfortunately, under the subcategory, DINKs with debts.

But how and why do we have so much debt?

Simply, because of bad money management.

We have decent incomes but with very expensive medical costs(a lot due to our fertility journey) and not having a budget in place, we were overspending, by a LOT and not saving enough.

Yes, we learned the hard way.

It was not until we were in a bad financial situation and someone commented,

“You should not be in this situation, both of you make decent amount of money and you do not even have kids yet.”

Ouch. That person did not have the right to say that but he’s RIGHT.

That was our wake up call. We started looking at our finances closely and made a decision to start our journey to financial freedom. We were both on board.

I did some research and came across Dave Ramsey, a financial guru, who built himself back up financially after losing everything. Everyone seemed to be so pleased with him so I researched more.

I was inspired by Dave Ramsey’s principle and decided to follow it.

We funded our emergency fund to $1000 and started tackling our debts. In January 2019, we totaled all our credit card debts and it blew our mind off when we found out we owe over $25K. Consequently, we decided to start our first credit card debt payoff.

Our total credit card debt was $35,702.75.

We made our goal to pay it in 12 months. That is a lot to pay in just 12 months! But we are pretty determined. That is how mad we are of this debt.

Here are the things we did to start our journey on how to pay off $25k+ in credit card debt.

How To Pay Off $25k+ In Credit Card Debt

Funded Our Emergency Fund

The most important step that we took on how to pay off $25k+ in credit card debt is funding our emergency fund. Before we started the credit card debt payoff journey, I set aside $1000 for our emergency fund. The emergency fund will cover any expenses that are unexpected, necessary and urgent.

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We had to use it recently because of some plumbing issues. It felt nice not having to use a credit card and add the amount to existing debt. I used a credit card to pay for the service but paid it right away using our emergency fund. I did this in order not to miss out on cashback/miles.

Created Our Credit Card Debt Payoff Game Plan

We totaled our credit card debt then we calculated how much we have to pay each month. From there, we figured out how much extra cash we must come up with every two weeks then we wrote it down on our debt payoff planner.

We also printed it out so we can have a visual reminder of our goal. It gives the motivation to stay on track. The numbers were pretty high but then again, we were determined.

If you want an automated version, you can try this credit card consolidation app that makes it easy to stay on top of your credit cards.

Took Advantage of Balance Transfers

Between my husband and I, we have a lot of credit cards, however, we do not carry a balance on all of them. We use these credit cards for accumulating points and/or cash back, which helps us with our travels.

In order to start tackling our debt, we went through the balance-transfer-route. At that time, we had some good promotions such as 0% APR and 0 transfer fees. So going through this route made more sense to us instead of the snowball method or debt consolidation.

However, since all of the promotions expire at around the same time, we still used the principle of the snowball method. We started paying down the one with the smallest balance first.

Updated Our Monthly Budget

We had to do update our budget because the credit card payments will be part of our monthly budget. We included all the credit cards and their minimum payments. Then all of the extra and leftover money goes to the credit card with the smallest balance.

Tapped Into Our Savings

Most of our little savings, not including our 401ks, are either on CD or high-interest yield savings account and we chose to leave them alone. We took out whatever money we have in our regular savings and put it towards credit card debt payoff.

Stopped Extra Payments to Mortgage

If we had known about better money management back then, we would not have started paying extra on our mortgage until we paid off other debts first. I canceled the extra payment and put it towards credit card payments.

Stopped Automatic Transfers To Savings Account

We also canceled all automatic transfers to our savings account and added that amount towards our credit card debt payoff.

Downgraded Our Cable

My husband really loves sports and I have my own shows that I love as well so we decided to keep our cable. However, we wanted to decrease our cable bill so I called the cable company and ask for a better deal.

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By just doing that, our cable cost went down by $80!

Sold Items That Are No Longer Needed

Every year during spring cleaning and winter holidays, we gather items that we no longer need and donate them. However, I came across a blog which talked about how they sell pre-owned items online.

I researched more about it and then started listing my items online. All the money from selling from goes to credit card payments as well.

Made Meal Plans Around Grocery Flyers

I haven’t really paid any attention to grocery flyers before. They usually end up in the recycling bin right away.

However, after reading more about how to save on groceries, I realized these papers are like gold. Now I pay attention to their weekly deals.

I even learned how to stock up on items at the right time. Every week, I make meal plans based on what is on sale.

Stopped Dining Out

This is not totally true. We did not totally stop dining out. We still do but we reduced unnecessary dining out. Gone were the days of dining out every Friday.

We still go out with friends and we have date nights only on special days. And we stick to our dining-out budget. We have a very BIG goal to achieve but we also have to live a life.

Packed Our Lunch

I drive a lot with my job, and it is so easy to go through drive-throughs and get my lunch. It’s just very convenient that way.

However, prepping meals and packing our lunch significantly reduced our food expenses. Being able to eat healthy food was also a bonus.

Collected All Loose Change

Who does not have coins laying around? No one because we all do, in the drawers, purses, pockets and even by the laundry area.

We collected all of the coins we can find in the house. We even found some stash from our coats and jackets. Then I took all the coins and traded them into bills at our grocery store. Yay, another $$$ towards credit card payment.

Shopped Smarter Online

We do our shopping mostly online because of its convenience and also we are able to use coupons or earn cash back from it. I use Ebates for all our shopping needs. I am able to get cash back from shopping through their site. What I love about Ebates is that they have a lot of stores that participate in the program.

Check out How I Got Paid $520+ from Ebates.

Utilized Money Saving Apps

I am on my phone a lot and I checked out apps that can make or save me money. Check out these apps that I use.

One of my favorites is Ibotta. It saves me a lot of money on my grocery bill. Last year alone, I was able to save over $1000.

If you want to know more about Ibotta, check out this post.

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Pet Grooming Salon Time-out

Getting Dustin to his groomer means $60-70 out of our finances. We could actually use that money for credit card payments if we do our own grooming.

If I do not take Dustin to the groomer, it does not mean I do not love him. It is actually better if I do his bath and other grooming requirements on my own because it means more bonding time for both of us.

Did My Own Manicure and Pedicure

Yes, I did my own nails. It was not perfect and it took some practice but I was able to do it. It gave me the flexibility to change colors when I wanted to. And the cost is the same as the tip I would give the manicurist.

Dyed My Own Hair

When I get my hair color done at the salon, it costs me so much. So, I decided to just do my own hair. I didn’t notice any difference, my gray roots were covered.

However, with high-lighting, I have to have my hairdresser do that. That is way too advanced for me.

Applied for Side Jobs

When we started our debt payoff journey, I started applying for jobs on the sides. I actually picked up two side jobs. These made me put more hours working but put more money for credit card debt payoff.

Worked Overtime

My husband was able to pick up a side job but only on the weekends. He is busy at his current job so he was able to put in more hours for overtime.

Write about it

Some people would disagree with this but one of my favorite ways on how to pay off $25k+ in credit card debt is by writing about it. This is my way of staying accountable. This is one of the main goals of this blog, to show people that if you put your mind into something, you can make it happen because you make yourself work for it.

Writing about your finances can be embarrassing but it will help to know that you are not alone. There are people out there too, who are in the same situation. So by writing about it and sharing about the journey, I will stay accountable and achieve my goals. And then hope that I will be able to inspire and help someone out there.

There you have it!

These are the things we did to start our journey on how to pay off $25k+ in credit card debt. This journey for sure will not be easy. It will involve a lot of sacrifices but I know that they are not permanent. Pretty soon, we will reap all the benefits and it will be all worth it.

Do you have credit card debt to pay? Join us on this credit card debt payoff journey. Learn more about debt pay off tips by checking out the 5 Debt Payoff Tips That You Need To Know.

How to pay off $25k+ in credit card debt

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