Getting Out of Debt Part 2 – Goodbye Credit Card Debt

When we last left the ‘Getting out of Debt Story’ we had proudly hit a zero net worth (See Part 1).  Our next chapter opens at a new apartment where we now have some furniture – no more eating off a card table! – and two careers with incomes heading in the right direction.

We were still chipping away at the credit card debt every month, however.  An eye-opener for me during this time came from a book called “Your Money or Your Life” by Joe Dominguez and Vicki Robin.  A key concept in the book is: “Money is something we choose to trade our life energy for.”  We have a finite number of days on this earth, and our desire for non-essential things, and need for money to buy them, requires us to spend more and more hours of our life at work.  I began to look for things we could do without that were using our valuable money.  One was a second car which we never used but we were paying to insure and park it.  We sold it.

Another glutton for hard-earned money is interest – in this case credit card and car loan.  Interest = Money we were paying because we didn’t have enough of our own money to pay for the stuff we thought we needed.  My husband took a temporary second job to generate more money to put on our debt.  We also became devoted users of Quicken to track all the money going into and our of our life.  To this day, Quicken is the tool we use to communicate with each other about our expenses, and our budget is based on the data in Quicken.

Within about 3 years we had paid off the credit card debt and paid off a car loan, but you will see in Part 3 that we had not yet become savers.

There is an excellent, detailed and free summary of “Your Money or Your Life” on the authors’  blog

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9 thoughts on “Getting Out of Debt Part 2 – Goodbye Credit Card Debt

  1. thisgirlsadventure

    Trading money for you life energy. When put so simply, it really is an eyeopener. Sounds like a good read. At the moment, due to an epic mission to get out of debt, I have / am trying to cut back on non essential purchases. Previously Ive never been attracted to the minimalist life style, but now I am becoming more and more interested. As the weeks / months go on I see that I can still live a great and productive life without all the non – essentials 🙂 thanks for posting.

    Reply
    1. healthfulsave Post author

      Glad you enjoyed the post. I think a minimalist lifestyle can open up maximal opportunity for the kinds of experiences you really want to have. For us, that means travel and saving for a retirement that would allow us to live in a warmer climate. This summer we will take a train trip across the US… but we can do that because we have a small, paid for house.

      I always enjoy your posts too and seeing how your week went.

      Reply
  2. Pingback: Getting out of Debt: Part 1 – The Zero Net Worth | The Healthful Saver

  3. Debt Ninjas

    Congrats on being debt free! We can’t wait to make our way to Dave Ramsey’s office to shout our debt free scream. We have a long road ahead of us, but this gazelle intensity tells me we are going to get there much sooner than we thought!

    Reply
  4. Pingback: It’s Great to be Two | The Healthful Saver

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