A new year and a new resolution…

I’ve recently come across several blogs via Pinterest about saving money, how to budget and then I came across an article in Self magazine today about a gal becoming debt-free via a “Spending Fast“.  It was all very intriguing to me.  I’ll get into the nitty gritty of our debt in a bit but wanted to put my goal down in writing to keep myself accountable.

We, my husband and I, have been in some form of debt since the beginning of our relationship.  We each came with our own and then had debt together.  Isn’t that sweet, we created debt together.  LOL.  I know.  It no laughing matter.  I’m sick of it.  The feeling of all of the money we owe weighing on me.  I pay all the bills.  I’m the one that sees it everyday.  It isn’t done together.

I guess I should give a little background.  I’m really writing this for myself but if I have readers, at all, you’ll understand a little better if I give a little background.  I won’t give names, as I want to keep our privacy, but I will give specifics for debt to keep myself honest.

I’m a work-at-home Mommy.  I own a small (very small) business.  My husband is in the military and has been for the past 19 years.  We have an adorable one year old son.  He’s truly the most amazing little boy.  I’m biased of course, but he is wonderful.

So that’s a bit about us.  Onto my goals…

When we are no longer moving across the country or around the globe (yes, we’ve been half way around the world for 5 years), I’d like to be able to buy a house.  Not only a house, but the “home of my dreams”.  I have images in my head of how it’ll look.  Everything just so…. us.

But with this dream, I think, will we be approved?  Will our mortgage rate be scary high?  Will we be able to afford it?  Will we have to sacrifice and live paycheck to paycheck just to pay our mortgage while eating ramen noodles and peanut butter and jelly?

This isn’t how I want to live.

I also have dreams of how I’ll furnish our new house.  With all the finest things…  What’s wrong with dreaming?  Nothing.  But it’s just that.  Dreaming.

Unless…  I do something to fix our current situation, that’s all it will be.  A dream.

So onto the dirty details of our debt…  This is where I’ll air all our dirty laundry.  But only about our debt and anything financial.  Nothing else personal will be written here (unless it’s about an argument between me and the hubs regarding our debt/financial situation).  You never know, I may need to vent, and instead of going for some retail-therapy, I’ll write, and write some more.

OUR DEBT

We have seven, yes 7, credit cards.  I’ll call them A thru G and also give their interest rate.

• A $8,183 (15.24%)
• B $16,518 (12.99%)
• C $4,334 (12.24%)
• D $10,989 (11.9%)
• E $14,652 (10.24%)
• F $6,102 (intro 0.0% until 11/13, then it’ll be 12.99%)
• G $530 (26.99%)

We also have two loans.  I’ll call them H and I.

• H $929 (14.9%)
• I $22,982 (4.79%)

Grand total of $85,220.  OUCH!!!

I’ll pay them off one by one, starting with the one with the highest interest rate, “G”, then go onto the next.  Everything else I’ll pay the minimum on, with the exception of “F” as I want to make sure it’s paid off prior to 11/2013 so all the interest isn’t tacked on.  I’ve never just made a minimum payment, which makes me nervous, but it’s for the greater good, right?

I should have “G” paid off this next paycheck.  After that it’ll be onto “A”.

So now that I’ve put it all down, in writing, I’ve got to keep myself accountable.

Updates to come…