Yes, I have $18,000 in Credit Card Debt but Here’s What I’m Doing about it…

Happy New Year, everyone! We hope you’ve all enjoyed your holiday season and are ready to kick off the new year in a spectacular way.

As for me, I’m kicking off 2015 in uncharted territory: I’m finally going to come clean about my credit card debt.

An ugly monster that’s been looming over me for too many years, my credit card debt has been a constant source of frustration for me….and a constant barrier to my ability to live the life I want to live.

Coming Clean about My Credit Card Debt

So in the spirit of full disclosure this blog was built on, here goes nothing:

My name is Alex and I have $17,923.45 in credit card debt chained around my ankles.

Just typing that makes my skin crawl. How on Earth did I get myself into this mess? Why has it taken me so long to admit it, much less do something about it?? How in the world will I pay this off, stop accumulating debt, and finally reach some of my financial goals?

Getting Rid of My Credit Card Debt

I wish there was an easy solution, but I’ve read and learned enough to know there is no magic potion that will wipe out my debt. While it was certainly a blast accumulating it, it’s going to be a nightmare to get rid of the balances.

But that’s precisely what I plan to do…and I plan to do so this year. 2015 is the year I become 100% debt-free (luckily, I have no other debt).

Here are some of the things I’m doing or will be doing to pay these suckers off ASAP:

Get a Part-Time Job

I’ve already picked up another job as a waitress. While it’s nothing glamorous, it’s quickly becoming my favorite way to pass any extra time because there are two benefits to working so much.

I am making some serious cash. In the first four days I worked, I earned almost $700. Granted, it’s the holidays and I worked on NYE, but it’s better than nothing!
I work so much that I don’t have any time to spend the money I’m making

Creating a Bare Bones Budget

Additionally, I’ve overhauled my budget to adhere to the concept of working with a bare bones budget. I’ve slashed as many expenses as I can, and I’m tracking all of my spending weekly. Traveling is on hold until I get a better handle on the mess I’ve created.

Utilizing Balance Transfer Deals

While I know it’s been written about before and can be a controversial topic in the personal finance community, a balance transfer was the best way for me to get my debt under control in terms of interest fees.

I spent about $300 on transfer fees, but I managed to score a balance transfer deal that gives me until March of 2016 interest-free. That will be more than enough time for me to pay off the balances. Plus, I calculated that by transferring the balances, I’ll save almost $600 in interest charges between now and that time. Score!

Instituting a Rewards System

This is something I’m going to be working on in the coming weeks. I’d like to create some sort of small reward system to keep myself motivated as I begin (and continue) this credit card debt payoff adventure.

I think a small reward such as a dinner out or a new travel guidebook for every $1,000 paid off is a target. Most likely, the rewards will change as I go along, but I think the monetary benchmark makes the most sense.