25 Percent Down, 75 Percent to Go

I wrote a big check today...

Of course, it wasn't big enough in my opinion, but big nonetheless. Today I wrote a check and wiped out 25 percent of my credit card debt.

Now I'm going to get back on the Dave Ramsey band wagon. I did a little rearranging of his steps to meet my current needs, but now I'm going to rock those baby steps.

Even though it didn't make the most financial sense, I paid off the entire balance on our smaller card. It didn't make a lot of financial sense for two reasons: first of all, I haven't created our $1000 baby emergency fund and secondly, the balance I paid off had an interest rate 5% lower than the card I'm still carrying a balance on.

There are plus sides to doing it this way though: first, one debt is completely paid off and I don't have to worry about it more, and second, now I only have to focus on one debt. Additionally, I was unable to pay the credit card I paid off, online; it had to be paid by check, in person at the bank. This was very inconvenient and I tended to not send extra payments to the card because that required a trip to the bank. Now, the only card that has a balance can be paid online at any time. If I have an extra $5, I can send that payment and I won't fritter it away.

I'm super happy to have paid that credit card off, but super sad to still have a balance on another card.

As of this morning, we had over $17,000 in credit card debt and I wrote a check for about $4600. With one signature, I wiped out 26% of our debt. I don't know that any other day. or month for that matter, will be as good, but I'm taking today as a win.

With The Husband's next paycheck, we will be able to create our baby emergency fund of $1000, or baby step 1. Today I jumped a little ahead and began baby step 2, paying our debts in order of smallest to largest.

Dave Ramsey works! I will get out of debt working his steps one at a time! Today was a win! One credit card down, one credit card to go!