We're about to be cc debt free!

Lindahfx · #1 (**permalink**) 02-13-2008, 04:22 PM

We currently owe approximately 12k in cc debt. - approx. 10k on a 1 year 0% cc that moves to 19.99% next month and approx. 2k on a 18.75% cc that we just charged to last month so no int. owing yet. Last spring we were in worse financial shape so we started making changes... got the 0% cc and moved all cc balances to it, tracked our spending ever month, made a budget, and tried to pay as much as possible on debt every month. Although we were making some headway, it was going to take another 1 1/2-2 years of regular monthly payments to eliminate the cc debt.

Then I got laid off in Dec. I got another job with the same salary shortly thereafter and am about to be paid out my severance from the job I lost. Through meetings with my financial advisor, we've decided to take the $4k from our savings acct., $1400 from my husbands savings bond, and I cashed in $9k in severance (of $23k) which will net around $7200 after taxes. And we are paying off our ccs next week.

It's going to be so strange to not have a cc balance. I can't remember the last time I didn't owe on ccs. It's a little hard to believe. It's a great feeling to think about. And then, we will focus on paying off my husband's student loans (approx $23k). I'll also be receiving a large tax refund from the remaining severance I've rolled directly in to RRSPs and the bonus I'm receiving next week that will also be rolled in to RRSPs. We're purchasing some furniture and doing a few other home necessities but otherwise we'll need to put some in savings to use for the taxes I'll owe next year.

So, we're still on our financial freedom path but we've certainly jumped over one hurdle which is a good feeling.

disneysteve · #2 (**permalink**) 02-13-2008, 06:22 PM

That's great. It will be very nice to be CC debt free. From now on, live below your means and you won't ever find yourself in that situation again. Enjoy.

maat55 · #3 (**permalink**) 02-13-2008, 06:27 PM

That's great. It will be very nice to be CC debt free. From now on, live below your means and you won't ever find yourself in that situation again. Enjoy.

Ditto's

LivingAlmostLarge · #4 (**permalink**) 02-13-2008, 09:28 PM

Cheers to you!

Tree0164 · #5 (**permalink**) 02-14-2008, 02:44 AM

That is awesome! We have been credit card debt free since 2004! I am going to second Disney Steve-do not run those credit cards up again-pay in cash and live within your means.

As Dave Ramsey says You are changing your family tree!!

Finally Frugal · #6 (**permalink**) 02-19-2008, 02:56 PM

That's GREAT! What a wonderful feeling---just think how you'll use the 'freed' up money that won't have to go towards debt now. Will you invest it? Save it? Hopefully you'll do as maat55 advises and live below your means from now on.

I was CC-free about two years ago, and slowly built up my balances again---now I hope to pay my balances off (AGAIN) by October of this year, and then never again!

I can't wait for that day! Congratulations, and enjoy!

DebbieL · #7 (**permalink**) 02-19-2008, 04:39 PM

How on earth did you find a 1 year 0% credit card offer in Canada? The best I've ever gotten is 0.9% for 6 months (and I have excellent credit). I never see those kind of offers. Plenty of 6 month 3.99%, etc. I've never seen an offer for longer than 6 months on any of the teaser rates. Can you share which card this was?

Lindahfx · #8 (**permalink**) 02-19-2008, 04:54 PM

Thanks to everyone. We are really going to try to stay cc debt free. We did just buy a computer on a cc on the weekend but it is part of our plan. Our computer is very old and we barely use it (we use work laptops, etc. but can't keep doing that). I'm paying the computer off with my tax refund.

Now we wll be focusing on my husband's student loans. They're balance is around 23k. Another big goal to meet.

maat55 · #9 (**permalink**) 02-19-2008, 08:04 PM

If I couldn't pay off the CC at the end of the month, I would have waited to buy the computer. Unless you got it on an interest free promotion. Not buying untill you can PIF is how you don't go back into CC debt. Wise up.

luvnspnful · #10 (**permalink**) 02-19-2008, 10:09 PM

DEBBIE; Citi and Mbna offer 0% deals. Go to Redflagdeals(dot)com... do a search for CC offers, and you will find a huge thread that is constantly updated with offer codes. I partook of the Citi 0% offer last May, and will be BT free on it in 3 more payments.

Was first time I ever saw a decent Canadian CC offer myself!

DebbieL · #11 (**permalink**) 02-20-2008, 12:57 PM

Thanks!

anonymous_saver · #12 (**permalink**) 02-20-2008, 01:22 PM

That's great!

Are you contributing up to any match in your retirement accounts from work?

Do you have a fully funded emergency fund?

Down payment if you are looking to buy a home?

Just some thoughts...

CreditExpert · #13 (**permalink**) 04-16-2008, 11:01 AM

cc debt free is a great place to be, keep it up and start working on a EF and RF

billchrz · #14 (**permalink**) 04-16-2008, 05:02 PM

It is a great feeling isn't it? I just recently paid off all CC debt and it is a huge burden lifted.

Congrats and keep up the great work!

kilcher · #15 (**permalink**) 04-18-2008, 01:18 AM

Congrats on paying off those credit cards! Hopefully now you'll take the next step and focus on saving! Being debt-free is great but saving more than you spend is even better.

tripods68 · #16 (**permalink**) 04-18-2008, 08:11 AM

Congrats! I know the feeling

Each time we charged our Beck's Furniture CC which often gives promo (0% for a year) for a new bedroom furniture sets, formal and non formal 7-living room leather sets, hardwood floors) we would celebrate with a nice dinner. Of course we try to pay it off before the promo expires usually within 8 months. Come to think of it, we prolly spend over 20K...its pretty crazy! I know... Now our toddlers are tearing out the once beautiful sets, it slow falling apart. We may have to replace each set one by one...gee I hope not

when its so good not to spend any more money....

cashqueen · #17 (**permalink**) 04-18-2008, 10:32 AM

Congrats!!

Skooby · #18 (**permalink**) 04-21-2008, 04:12 AM

Good Job!

cindyg86 · #19 (**permalink**) 04-21-2008, 11:12 PM

That sounds great and I'm so glad you are able to do it! Currently, I have a balance of about $4000 on it. I cut the credit card up so I know that number is only going to go down! I am on an aggressive plan to have it paid off by the end of the summer. It's very inspiring to hear of other people successes!

Best of luck!

Lindahfx · #20 (**permalink**) 04-29-2008, 07:52 AM

Thanks everyone. It took being laid off and getting a severance package to do it but it's done. We recently charged a few furniture items (planned for) that I am paying off with my tax return of over $9k coming soon. The rest is going into savings in anticipation of having a big tax bill next year and in case I have to go on mat leave. But being debt free allows us to now start saving for our dd's education, creating a separate EF and start tackling my dh's student loans. And I've reset up deductions (9%) at work towards an RRSP. (the company matches up to 4% after I've been here 6 months).

Being a "spender" it's been hard not to treat ourselves on things we've been living without. And we have purchased a few things - new BBQ, clothes, a few gardening needs, etc. But I have been managing it quite well.