10.24.2011

How am I going to pay off this debt?

Last week, I posted my latest update on our Credit Card Debt Payoff Journey.  In case you missed it, you can find that here.  We finally knocked out one of our major credit cards - the CitiCard1 that had a balance of $900 on it!!!

So, now we're down to the one major credit card, the CitiCard2, with a balance of $3,830. This NEEDS to be paid off by November 2012. So that gives us about 13 months to accomplish this.  It needs to be paid off by then because that is when the 0% interest offer ends. And with all the interest I paid on it in years past, I'm certainly not going to pay them a penny more.

Obviously, if we've paid off over $10,000 in debt in the past 10.5 months, then we could easily pay off $3,830 in 13 months. But... (yup, there's a but!)... just to make things more complicated I have a few other goals first.

We'll still be working on paying down that card, but I also have some dental issues going on and I need a good amount of money to go towards paying for all of that. 

Also, we're taking a trip to Disney World next year and we need to make payments towards that.  The only trip Hubby and I have ever been on together was our honeymoon back in 2005.  This past summer, the kids and I went on a short vacation with my Mom, but we've never had an actual family vacation.  So this will be our first, and I'm super excited about it!!!  This will also be our kiddos' first trip to Disney World, so that makes it even more exciting!!!

Some people might argue that the money for the trip would be better spent knocking out the debt first.  And this is the logic we had been following for the past several years.  We've been dedicated, we've been living frugally and we've worked hard.  And we are all well-overdue for a change of scenery and some super amounts of fun!

So we decided to plan ahead and make payments on our vacation, so it would not require us to go deeper into debt. 

We've had two yardsales in the past few weeks... a larger one that made us $173 and part of a smaller one that made us $43.50.  All of that is being saved for Disney and we hope to sell some things on ebay and craigslist to earn some more extra cash.  Also, there will be Disney gift cards on all of our Christmas lists this year, as several family members have already expressed an interest in helping with that! 

Anyway, these are our goals.  To keep paying off the CitiCard2.  But at the same time, work on paying for medical expenses as they arise and to save and make payments for our Disney World vacation.

To read my previous posts about our debt payoff journey, go here.