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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.
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.
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