So, I’ve mentioned that I’m in a lot of debt. My goal last year was to pay off two of those debts, which I succeeded. Now, what can I do this year? I still have three big debts, plus I now have a wedding upcoming. And we know that weddings are not cheap. So, what’s the plan? Can I beat it?
Debt Goal
First, let’s set a goal. Out of my three debts, what do I want to see, and what is realistic for me, for the end of the year? As much as I would love to say that the goal is to be debt free by the end of the year, I don’t see that happening. It’s just too high and I don’t make that kind of money. And again, I have a wedding to pay for. So, what’s the goal? I want to aim to pay off one debt entirely. My line of credit that is. As for my two credit cards, I would like to bring those both down to the point where I have confidence I can pay them both off early next year.
What Will it Take
Discipline. And a lot of it. It will take discipline to not use the credit cards once I bring them down to a usable level, unless necessary. I will have to use one of my credit cards to pay for my domain and hosting. But other than that, I want to do my best to not use them. The other discipline will be to make sure I’m putting money towards my debt every chance I get. That means a huge chunk of all my paychecks needs to go towards my debt. If that means I have to make sacrifices, so be it. Time to reign in the part of my brain that spends money purely because it wants to.
Tackling Debt
Now, I know that different people will have different methods. And honestly, I’ve heard of different methods working for different people. I’ve been told that I need to tackle the one with the highest interest rate first. However, I’ve also been told that I need to tackle the smallest ones first so that I can put more money towards the bigger ones later. The latter one is honestly the one I’ve been going with. I still put money towards all three debts, and I understand the reasoning of the first method. But my brain doesn’t really see victory that way. I see victory when I get to erase a debt off my board. And it’s working for me. So, I’m going to keep going this way.
Realistic Deadline
This is a bit tricky. But, I think I’m going to really challenge myself. The smallest of my debts I’m going to aim to have paid off by the end of June. There, I said it. That’s my goal. It’s terrifying to put that out there, but I think I want the extra accountability. So, I’m trusting you guys to hold me to it. I truly believe I can have it paid off by then. Honestly, I could pay it off faster, but then I wouldn’t be able to make payments towards my credit cards. And we all know that credit card interest is a pain in the rear. But, I will do my best. And if I can keep bringing down my credit cards at the same time, that will be a huge win for me.
Let’s Do This
Okay, I’ve put it out there. We have a deadline for my line of credit to be paid off before the end of June. And by the end of the year I want both my credit cards to be around seventy five percent paid off. What does that look like? I’m not great at math, but I think I can figure out if I’m successful by year end. Especially because I know how high they both are right now. I need you guys in my corner though, cheering me on. But, like I always say, anything can happen if you try.
