Two months ago, our credit card debt was the highest it has ever been! In fact, we were over $1100 over our credit limit! We had NEVER gone over our credit limit before. We'd gotten close to it, but never over, and certainly not by more than $1000.
It was a much needed wake up call for us. Since then, we have topped off our emergency fund savings account (2 months of bare bones expenses), rejigged our budget to send more money to debt, and decreased our debt by $3278.26. I don't know what took us so long!
In our first month of serious debt payoff, we decreased our debt by $640.55, after interest, and were still over our credit limit. But it was a decrease. The first time our debt had decreased in months. In our second month of serious debt payoff, we decreased our debt by $2637.71. (This was an abnormal, but exceptional month!) We are firmly below our credit limit and still making progress.
Our goal is to decrease our debt by $1000, after interest, every month. In order to do that, we have to send at least $1300 towards our credit card debt every month and account for any charges we may make on our credit card in our budget. I think this is doable. It will just take planning and discipline. We have to pay attention to our "extra" expenses every month and actually account for them in our budget. It would be better to send less money towards debt and pay cash for all of our expenses than to forget and charge expenses on the credit card.
Every month has irregular expenses; those expenses that crop up once in while but aren't monthly deals. We need to pay attention to what they will be each month and make sure we set aside money for them in our budget spread sheet.
I’m very happy to be under our credit limit again and to be making some progress on our debt. $3200 is a great decrease and a great start! Now we just need to keep it going!