You could say the tone of my blog is kind of austere. It reflects the mood of the year for me, a year of investment and renewal. Blah blah, I write about this all the time. But today, I reached a major milestone related to all my cost-cutting and modest living: I'm finally out of (credit card) debt!
I have been gabbing on and on about my credit card debt issues with my coworkers and friends for months. Ever since I got a job after grad school, it's been my expressed desire to pay down my credit card by paying a health dosage over the minimum payment every month. In addition to this, I've saved and worked to bring down the debt entirely in a reasonable amount of time.

Well, a funny thing happened on the way to fiscal sanity. I realized that, if I took the money I was saving toward a new computer, I could pay down my debt a whole year early. I did some calculating, and I could save hundreds of dollars in interest doing this and I really felt I could stick it out years with the computer I have currently (I really just wanted to have the money on deck, collecting interest, in the event many months from now I want to replace my computer).
Even though paying off my credit card won't make everything in my world better — I still have student loans and I plan on shifting my above-the-minimum attitude toward that balance now — this is a huge psychological weight off my shoulders. Ever since June 2002, when I opened my first credit card to handle a major car repair I had at the time, I have lived under the burden of a credit card. Initially, it felt so unnatural knowing I could not pay down a debt with the amount of money I could make in one pay period. This was a feeling I just got used to.
My debt grew a lot in college as other car repairs came and I eventually moved the balance to a low-interest credit card. A few road trips here and there and I had near $2,000 in debt! Luckily, I spent a summer paying down the debt to below $1,000, and it seemed like I could kill it for good way back in 2005, but then life happened. Moving to California via a 3-month sojourn to Ohio cost me over $2,000! Plus I had to throw a $1,000 security deposit on my credit card just to get my first apartment. Suddenly, I was dealing with a major balance.
Can you believe that, back in the fall of 2005, I scoffed at the idea of budgeting to pay off my credit card as soon as 2007? It seemed way too far out for me and I wanted to do it sooner. When I took my eye off the prize and found myself into 2006 charging a trip to Europe on the card (!!), suddenly 2007 didn't seem so bad.
I got it down a few thousand dollars before I moved to Missouri for grad school, but I couldn't kill it entirely. In grad school, I paid down my second credit card with excess student loan money, but there was nothing I could do about my major debt until I had an income again. In 2010, I leaned on the card a lot to get me through the months before I graduated and finally found a job. It was then (conveniently for the credit card) that my interest rate more than DOUBLED, racking up major interest payments.
I have no idea how much I've paid on various card over the years, but I can tell you that on my most recent credit card, I've paid over $1,050 in interest and fees alone. It's mind boggling.
But now I can take a step forward without the weight of credit card debt. Like I said, it doesn't solve all my problems. The challenge now is to save money and not spend wildly now that I have more money every month. I'd like to save up for the new computer in the next year and put money away for a rainy day. Also, I'd like to invest and hopefully save some money to buy a condo or apartment somewhere down the line. That will take years, but I'm ready to work toward that goal.
To commemorate this moment, I unearthed an old blog entry of mine that I wrote the week I first went into credit card debt. That was nine years ago! It's amazing how such a small debt caused such a huge headache for me:
The Week of Hell
June 2002
... So, how was my week of hell? It was horrible and I have a $1000+ bill to
work off. Once again, I really feel this is not that bad and that I'm
really blessed to even have a chance at paying all this back. ...
Now that I've had the chance to pay it back, I hope I'm blessed with the good fortune to never run a prolonged credit card balance again!