Yesterday I made a several thousand dollar payment to pay off the last of my and Matt's credit card debt. It is what 100% of our tax return went to this year. I am not completely sure about Matt, though I suspect that he, just like me, has carried credit card debt ever since having a credit card in our own name. Relieving ourselves of that chunk of debt feels incredibly good. With that gone all we have are two student loans and our house. Unfortunately we will have a car payment again soon after not having one for a couple of years. We are in dire need of a new car and unfortunately don't have time to save what we would need to buy a decent car. So that isn't perfect, but holy cow, it's light years away from where we were not too long ago.
Three years ago we were making a huge push to clean up Matt's credit so that we could buy our first house. I had good credit, but I had no job. Matt had the job but bad credit. We worked really hard paying all kinds of things off until we finally got approved for an FHA loan. Of course, we didn't stop paying off debt then, but our living expenses more than doubled when we bought our house and it got extremely difficult to do more than make minimum payments on everything. We were very blessed to have Matt's income increase enough to pay a sizable chunk of money towards other debt, primarily the credit card, every month. Of course, it felt like it was a two steps forward-one step back kind of deal and despite the work we were only inching forward. When we found out that we were getting a decent sized tax return this year we knew right away what it would go towards: the credit card. Now, I know that we have a loooooong ways to go when it comes to making all of the smartest choices for our money, but I think we are doing incredibly good considering where we started!
Last night after I made the payment I posted on my facebook account that we were now credit card debt free. As of right now over 50 people have either "liked" that status or liked comments within the status. It made me feel so proud to have the support of so many people I know and love as Matt and I accomplish our goals.