So how did we do this month? Let’s look at where we started:
Card: Bank of America Cash Rewards Credit Card
Jan 1st balance = $8,514
Jan 31st balance = $6,985
Card: Care Credit
Jan 1st balance = $3,144.95
Jan 31st balance = $2,244.95
Total consumer debt still owed: $54,260 (was $57,303 – Christmas showed up on January statements 🙁 – we also paid minimums to other cards). I just want to add that with the other cards we paid $1,342 in minimum payments and it only paid off $600 of our total balance. And that ladies and gentlemen is how they get you sucked up in this credit card debt cycle forever. It’s stark when you actually write down the numbers and makes me so much more motivated to pay this crap down so the credit card companies don’t get even more of our money.
The Care Credit card was opened when I had my cataract and laser surgeries. Around $4,000 was financed (the LASIK was not covered at all because it’s considered a cosmetic surgery even though the other eye was for a medical reason/cataract surgery and I had to have both eyes corrected) at a 0% APR until February 2021. I decided to include the Care Credit (whereas all other credit cards are just getting the minimums paid per the Debt Avalanche model) because I can pay this one with the HSA account my employee offers. I get $150 taken out per paycheck tax-free and placed in an online HSA bank and so it’s no hit to our monthly budget. My company also provides a company match: $550 is placed in there on January 1st which is why we had such a huge payoff this month and they’ll also match my $150 contribution for the next three paychecks (to total another $550 which is a pretty impressive match for the year). Paying into a HSA account also reduces the amount of taxable income we have at the end of the year so it’s like a double whammy: paying off debt and potentially reducing taxes owed.
All in all, not bad for the month after Christmas. February is always awesome because of tax season although I never like to count on that because wouldn’t it suck if we OWED money this year? Another update will be on March 1st. Good luck to everyone else doing this with us! – FemaleGG
A blog/website where these happily married, 30-something parents of 2 little minions rant, rave, and speak in tongues. Raw, honest, and riddled with profanity. Get on board and let’s make The Ghost Generation awesome together! http://theghostgeneration.com Twitter.com/Gh0stGeneration