I’m Debt Free! (Except the Mortgage)

The credit cards have been paid off!

I am super excited about this. Less than a year ago, I had about $30 K in debt. Now I only have my condo payment left.

This is a really big deal to me. This summer when I was laid off, I faced the possibility of having to sell my condo, because my credit card debt was so high and I was getting offered salaries that wouldn’t cover my expenses.

Since then I was fortunate to find a job that replaced my previous salary (plus overtime). I also received some family money that I put toward the debt. Finally, I realized that if I cashed out my 401K instead of rolling it over (it wasn’t that big) I could pay off my cards completely.

This was a scary decision, to cash out my retirement, tiny though it was. I took a big tax hit cashing it out. But that amount was the final bit I needed to pay the cards off. Obviously I won’t be quick to run my last remaining card up again. If I find myself getting tempted, I’ll cancel it completely. So far I haven’t used it for a month, and I actually have a slightly negative balance. Feels good. I have to credit Dave Ramsey with providing the methodology I used to get started. Although I was fortunate to have a couple of windfalls, in the past I would have used that money as a down payment on a new car or to remodel my bathroom or kitchen (they all really need to be replaced!) But being debt free is worth the peace of mind.

Minimalism isn’t just about de-cluttering. It’s learning to live without things you don’t need. If you use the money you save from not shopping to gradually pay off your debt, you can be debt-free too! It really opens up your options. I feel GREAT!

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4 Responses to I’m Debt Free! (Except the Mortgage)

  1. ahmward says:

    Congratulations! You should feel so proud.

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