Clearing Debt From My Life

 

I had decided back in December, before this year even began, that 2020 was going to be the year for me to get my shit together once and for all.  The biggest part of doing that was to clear my debt that has been hanging around for the past few years and steadily growing in size.  No matter what, if I did nothing else all year, I wanted that debt gone.

 

The first thing I did was to stop our Netflix subscription.  We had the very basic plan, $8.99 a month so not expensive, but we decided it was something we could let go.  Once I did that I began to feel empowered.  Already I had done something.

 

The next thing I did was to put us on a strict grocery budget in January and to work off of what we already had on hand.  I kept it lean and we still managed to buy everything we needed as well as a few stock up items that were on sale and markdown.  I carried that mentality on into the year.

 

During this time we did not dine out, go on any big shopping sprees, buy anything we did not need and literally lived like paupers.  We wore the clothes we already had, ate simple meals and we didn't waste anything.  We used up every last drop of soap, squeezed out every last bit of toothpaste, ate our leftovers, kept the heat low, watched free TV and movie options, and used items we already had for crafts and projects. By simply cutting expenses it gave me the extra cash on hand I needed to pay bills.

 

After meeting my financial obligations, savings goals and monthly expenses, every spare dime I had went toward debt.  To give me a boost the girls and I went through the house and I sold quite a few items we no longer needed or wanted.  Most of that money went toward debt and the rest covered a couple small expenses we had last spring such as a food sealer and a dehydrator.

 

I also worked quite a bit of overtime and that extra pay went directly toward debt along with my income tax refund and my annual bonus.  In a very short time I was able to pay off my car and move onto the next larger debt which was a three year accumulation of medical bills.  That was a much bigger mountain to climb and at one point almost seemed insurmountable.  But I was determined.

 

In a very weird way the pandemic helped me out.  Home mortgage rates dropped significantly and I began to consider refinancing my house.  Although my balance was pretty low my monthly payment was not.  Interest rates were much, much higher at the time I had financed my house.  By refinancing my home I was able to use part of my equity to pay off the medical debt and my monthly house payment was still nearly cut in half.  That decision was a complete no brainer.

 

Much to my surprise and sheer joy by the end of May I was able to eliminate all but $1800 in debt.  In July I finished off that remaining $1800.  I'm done.  Moving forward I now only have a much smaller mortgage payment, insurance and the utility bills.  Now I can breathe.

 

I do not want to go back to how things were.  Debt is horrible.  It gnaws at me and keeps me up at night.  It makes me feel guilty if I buy something that isn't an absolute necessity, and quite often even if it is, I still feel bad.  Debt does not do anything to make a person feel good.  And now that it is gone my life is much, much better for it.

 

To protect what I have accomplished this year I have a much larger emergency fund now and it is fully funded.  I now have a medical savings account that I contribute to each month as well.  I continue to put money into savings every pay day.  And we have not changed our current standard of living.  We could turn Netflix back on, but we've decided we're okay without it.

 

Finally!  I feel like I've got it together!

It is crazy to me that what I struggled with for the past three years I was able to wipe out in five months.  I encourage anyone who is struggling with debt to get out from under it by any means necessary.  Start with something small like I did and see where it takes you.