All Go Bye Bye

As of 12:54 pm CDT this afternoon, I no longer have any credit card debt. Of course, since it’s the weekend and tomorrow is a holiday, the payment won’t clear for a few more days. But for all I care, it’s all gone. Boy does that feel good.

It only took me 13 years to pay it off. LOL I opened both accounts in early 1995 (during first year of college - second half of the year). Of course, those first several years (especially while I was in college) was where the debt got racked up to. It never got completely out of control. But it did grow more than it receded.

Several years ago is when I decided to start sending more than the minimum payment. I tried to get a loan to pay both cards off, but at the time, my debt to income ratio was too high, and I couldn’t get a loan. So I forged ahead sending as much money each month as I could. Over the past few years, I’ve been able to send more and more (thanks to raises). For the past 2 years or so, I’ve been sending from $200 to $350 to get the balances down quicker. I paid off my Discover Card in April of this year. So that meant I could send more to the Visa. And with that payment just before 1pm, the Visa now has a balance of $0. Such a good feeling. Now the only loan that I have is my student loan. And from what I’ve read, that’s a “good” debt to have, if debt can be called good.

My plan back when I started the larger payments was to cut up the Visa and cancel the account but keep the Discover for emergencies. But after reading some articles online and hearing advice on a few financial shows on TV, I’ve decided to keep both. I plan to use them every now and again and pay off the balance in full each month … probably putting gas on them. That way my credit report will show that I can manage my credit. Getting rid of one or both cards would damage my credit (at least that’s what I’ve been led to believe), and I don’t want that. Especially since it’s so good right now AND since I’m planning on buying a house within the next 14 months or so (hopefully ).

So, starting next month, that $350 that was going to the credit card will be going into my money market savings account (if not more than that). I’ll be putting money into my regular savings account as well. That way I’ll have some other money to use for furniture/appliances/repairs/etc once I get a house. I’m well on my way to becoming a home owner. Now to do more research so I know exactly what I’ll be getting myself in to.