I did it! The first of my 3 credit card statement came in the mail yesterday with a $0 balance! WOOHOO!! (happy dance)

I still have 2 cards to go, but I just had to share the success! I’ve been writing about my credit card debt for a while now and it’s thrilling to have this accomplishment under my belt.

Other things I’ve done lately to get the other 2 moving forward:

• Transferred a high APR balance to a lower APR card.
• Set a goal for how much I pay each month for all the cards and stick to it.
• Pay off more than my goal when possible.

I’ve also discovered an inspiring blog called Get Rich Slowly, which applies Slow Movement concepts to personal finance. The blog is full of common sense advice with a dose of humor and zen. If you’re struggling with debt and cash flow, I highly recommend it.

At this point, I have 2 years, 8 months left to go before I’m done with credit card debt for good. It’s slow progress, but boy does it feel good!

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We talk about debt around here. It’s safe.

When I first mentioned my credit card debt last summer, tons of people commented with relief, “So it’s not just me who’s working on this!” I still can’t believe that I shared my total number, but I’m going to do it again. And also a cool tool you might want to try.

My numbers, today:

Total: $28,621 (down $1,784 since last August!)
Card 1 9.9%: 4,712 (down $679)
Card 2a 2.9%: 1,420 (down $633)
Card 2b 34.9%: 2,522 (down $56)
Card 3 23.9%: 14,467 (down $416)
(Update: Bank of M&D Loan 0%: $5500)

The bad news:

Out of the $4,800 I’ve actually paid to these companies over the last 5 months, only a fraction of that amount went towards paying down principal.

But it wasn’t just the interest rate that got me. I take responsibility for the 2 late-fee payments because my bill-paying system isn’t working effectively enough. And the increased APR on Card 3 as a result of one of those late payments. It’s ouchie, yes. I had some big emotions about it (mad, sad, giving up, etc.). But there it is. Those slip-ups cost me cash.

The good news:

Gosh, it feels good to be in the 20’s – and out of the 30’s!

The plan: Even with the setbacks, I’m on track. My plan is working: pay a set amount every month that exceeds the minimum payment. I won’t bore you with the intricacies of that plan, but in short, I’m paying as much as possible on the highest APR accounts first. And this highest % happens to be the lowest balance, so I’ll be excited to get that one outta here!

New laws: On February 18th, the new credit card legislation goes into effect (CCARD details) and the payments I make to Card 2 (which has 2 different interest rates) will start going to the higher interest account, not the lower. Thank you muchly, Pres. Obama, Congress and Senate! That will put more of my money toward paying them off.

Cool tool: The cool tool I found is a credit card pay-off calculator. According to this tool from CNN Money, it will take me 3 years and 3 months to eliminate my debt if I keep paying the same amount ($800/month). And only about 25% of that will be interest. What, you might wonder, would it be if I only pay the minimum balance? A nice, round 30 years to pay it all off – and about 75% of that would go toward interest.

If that’s not an incentive, I don’t know what is.

Do you wonder how long it will take you? Get out your most recent statements and fill out the online debt calculator (completely anonymous).

Share if you like – what are your most recent successes toward getting out of debt?

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