the slow bleed has finally stopped!

**happydog** · 12-09-2007, 03:43 PM

For the first time in almost 4 years, we finally have enough income, and have trimmed our spending, to cover what had to go out every month! Since Oct 8th, we have not used our credit cards for anything, and I will be able to pay off the one with the smaller balance before the due date, on Jan 4th. The other one will be paid in full by April, and we will have $5000 in an emergency fund. And then we can start on that pesky HELOC.

I just wanted to post and say thank you to everyone here. Even though I haven't posted a lot, I still stop by from time to time, and gather lots of determination and frugal inspiration from all of you.

As things have gotten better in the past three months, it has inspired me to be even more careful about every penny coming in and going out. I spent the last three days making a spreadsheet budget for all of 2008, to predict how much extra income we will have for paying down our debt, and for budgeting for the months that my DH has less income. (We know how much he will make for the year, but his month-to-month amounts are very irregular because of the type of job he has.) I then took that info, and plugged it into Lloyd's debt snowball calculator, to come up with a plan for paying off all of our non-mortgage debt! And now, it feels doable, instead of like climbing Mt. Everest without any gear.

My next step will be to enter all of the receipts I've saved for the last two months, to show DH exactly where we are wasting pennies. lol I need to start a spending notebook for us, because it's easy to waste small bits of money without even realizing it.

Again, thank you all for the inspiration. This place is a huge resource, and has been a great tool and support system for me, even if I don't post much.

**nodmicks** · 12-09-2007, 03:49 PM

Way to go! Thanks for sharing your great story!

**mikandmari** · 12-09-2007, 04:06 PM

Doesn't it feel great to know that things are under control?!!?

Thanks for sharing your story. We are all an inspiration to each other!

**Nantahala** · 12-09-2007, 04:42 PM

Congratulations!

**ilovechocolate** · 12-09-2007, 04:42 PM

Wow! That is fantastic!!

**kittykatstrong** · 12-09-2007, 04:44 PM

Way to go!!!!!!!!!

**happydog** · 12-09-2007, 05:03 PM

Thanks, everyone! It is a huge relief to finally be working in "the black" instead of in the negative all the time.

**Michelle68** · 12-09-2007, 05:54 PM

You've done fantastic! Keep up the good work.

--Michelle

**brenda67** · 12-09-2007, 05:58 PM

I agree with the rest of the posters..Great Job!....

**Mom23boys** · 12-09-2007, 06:07 PM

Way to go!! You are on the right track!

**kaykwilts** · 12-09-2007, 06:11 PM

WTG! Looks like you are on the right path.

**monkeymia** · 12-09-2007, 06:29 PM

Sounds like you are working through your debts and spendings very well. Congratulations.

**happydog** · 12-09-2007, 06:34 PM

You know, it's so easy to have a couple of big events totally change your financial picture. We have been married for 19 years, and until 4 years ago, the only debt we had was our mortgage. We never carried credit card debt, or even a car loan. A medical/dental emergency followed by an unplanned need to purchase a vehicle, some unexpected home maintenance expenses, and DD starting college, was enough to totally derail our budget for the last 4 years. Once you get behind, it can be very difficult to crawl out of the hole. Our situation is very different this fall and all next year, and my DH's current job will really help us get caught up.

Major lesson learned? Have some liquid savings set aside. We had all of our extra money tied up in 401k and IRAs, so we didn't have any cash reserve for when disasters struck, one after the other. After we get our revolving debts paid off, we *will* be building up a larger cash reserve--at least 6 full months of expenses. And then we will start sinking money into retirement savings again. Hopefully, that will happen 2 years from now.

**KJayEsq** · 12-10-2007, 01:11 AM

Awesome job. I hope to be where you are sometime soon!

**happydog** · 12-12-2007, 05:18 PM

woo hoo! We got paid nearly $1000 of back pay for work DH did earlier this fall, so I was able to pay off the Visa today, instead of having to wait until January! One down, two big ones to go.