During a move, I racked up about $20,000 in credit card debt. After the move, I got serious about paying it off.
For two weeks of the month, I use my income to cover monthly expenses. The rest of the month, any money that comes in goes towards paying down debt.
Using this plan, I’ve paid off about $12,000 in three months.
personal finance coverage.
This summer, my husband and I moved into a new house. We weren’t in the most ideal financial situation, but we were in a good enough position to pull the move off in time to get our daughter into a great school system by the start of kindergarten.
In the long term, this made sense financially, since we would have been paying $700 each month in private school tuition if we’d stayed in the district we were in (which we didn’t feel met her needs). In the short term, however, it meant we were a bit strapped for cash.
Enter, credit cards. Using credit when you can’t cashflow a move is dangerous and controversial, but it made sense to us.
We expected a lot of expenses over the two-month period of the move. If we put it on credit cards, we reasoned, we could finance it for now and pay it off over the coming months when we started saving on tuition (which we had been paying for the past two years).
Six months later, our debt payoff plan is going well. But really, it’s not even a plan at all.
In the lead-up to the move and the first month of owning our home, we wracked up about $15,000 in credit card debt. That seems like a shocking amount, but we weren’t doing anything outrageous.
About $5,000 of that was necessary …read more
Source:: Business Insider