Reply to Yay, paid down credit card debt!

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[quote=Anonymous]We had $7,000 credit card debt on $40,000 HHI - 20 years ago.
 
It took is a year to get out of debt and we never went back to being in debt again. We were pretty hand-to-mouth at that time. So there was not much we could cut out. The best part was that we were young and did not have kids. This is how we got out of debt.

All meals cooked at home - grocery was around $200 a month even then. 
DH car-pooled to go to work. (We had only one car)
No cable, newspaper etc.
No eating out, movies etc.
No new clothes (except what was needed for DH to go to work in)
Not buying a single thing for the house.
Not buying cleaning supplies and cleaning everything with just - laundry detergent, dish-washing detergent, dishwasher detergent and vinegar.  I so wanted to buy Windex to clean my windows.

Made 2 payments every month on each bill. One to pay off the minimum and the expenditure for the month. And another at the end of the month to pay down one card at a time.

We knew we should have paid the CC with the highest interest rate first, but psychologically it was more encouraging to payoff the ones that had the lowest balance. Anyways, our credit scores soared after that. And we never ever went back to that state again.

Useful lesson. I am glad it happened early in our lives - within first year of marriage.

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