We are Credit Card Debt Free!

Posted by Mrs Money on March 4th, 2010

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Creative Commons License photo credit: kainr

Well, we did it! I bit the bullet and finally made the last payment on our Home Depot Credit Card.  It made no sense to me to keep making payments each month when we had the money to pay it off, so I just did it.  It was a wash anyway!

I could have kept the money in our ING savings account, but it seems that is not really a high yield savings account right now anyway. I figured that if I left that money in the savings account for 6 months I’d earn under $1.50. Was the hassle of making the payments each month worth it to me? No.

How does it feel to be credit card debt free? Fabulous! To be honest, I feel better than I did when we paid off our student loans. Crazy, right?

Next up: the car loan.  And then we’ll be 100% debt free except for our mortgage.  Woo!

What are you working on paying off right now, if anything?

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57 Responses to “We are Credit Card Debt Free!”


  1. Jenny says:

    We are in the same boat as you. We really never carried much credit card debt, but we do have a car loan. When we got our taxes back, we threw over ten months’ worth of regular payments at it at once. It felt sooooo good! We should have the van paid off by July if all goes well, and then we will maintain it, love it and drive it until it collapses in a heap. (Or until we have too many kids to fit into it; unlikely.) We hope to pay cash for our next vehicle. I strongly believe in saving a minimal amount and using extra money to pay off costly debt. Debt weighs me down emotionally.

    [Reply]

    Mrs Money Reply:

    Jenny- The car loan just kills me! I hate that thing. And then it makes me not like my car! That will be great to have your van paid off by July. Too many kids to fit, haha. :) I love that!

    I know what you mean about it weighing you down emotionally :( Think forward to June!

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  2. Congratulations! I know that is a great feeling. We are down to plugging away at our mortgage.

    I’m afraid we may need a new car in the next 3 or 4 years so that might set us back a bit.

    [Reply]

    Mrs Money Reply:

    Debt Free Dude- Thanks! I can’t wait to get rid of the car loan and start attacking our mortgage, or just having the freedom to do whatever we want with our money.

    Are you saving for your new car right now? Just curious. :)

    [Reply]

  3. Cynthia says:

    Congratulations! We have one auto loan but it’s at 0% so we’re paying minimums on that and working on building our emergency fund.

    [Reply]

    Mrs Money Reply:

    Cynthia- Thanks!! :) Ours is at 0% too, but it drives me crazy to have to pay it each month! lol

    That’s awesome you are building your emergency fund. You’ll be there in no time!

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  4. Mrs. Frugal says:

    Congratulations! We only have one debt, but it’s a biggie. I shall do the biggest jig once it’s gone.

    [Reply]

    Mrs Money Reply:

    Mrs. Frugal- Thanks! I can’t wait until we only have the mortgage left. That will be fabulous!

    [Reply]

  5. Evan says:

    AMAZING! A true inspiration. But can you explain why you got rid of your Student loans before the CC debt?

    [Reply]

    Mrs Money Reply:

    Evan- Thanks! The credit card debt was from a dishwasher we bought on our Home Depot Credit card at 0% interest for a year. I wasn’t in a hurry to pay it off, so I decided to make payments. Then I decided that was driving me nuts and it had to go. :)

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  6. Congrats Mrs Money..way to go..

    [Reply]

    Mrs Money Reply:

    Mr Credit Card- Thanks!! :)

    [Reply]

  7. Amy Dunn says:

    Congrats! That has to feel good. You deserve to celebrate in debt-free style, of course……..make yourself a nice home-cooked meal, light some candles you already have, watch a DVD you already own…….you get the idea.

    [Reply]

    Mrs Money Reply:

    Amy- Thanks! I love your idea. I will have to do that with my hubby this weekend. :)

    [Reply]

  8. Congratulations! What a wonderful feeling to get rid of your credit card debt.

    I’m glad you saw the limitation of keeping the money in your savings account (esp. with savings interest rates being so low these days). My husband and I always congratulated each other as we paid off our debt because we saw paying off a debt costing 5% or 7% or more in interest as equivalent to earning *earning* that much interest as a return. And many of those debt payoff ‘earnings’ beat market returns handily :)

    [Reply]

    Mrs Money Reply:

    ami- Thanks! It feels good to have that gone.

    Yeah- I think it was a little crazy. I should start paying extra on the mortgage because the rate is around 5%. I love that way of looking at it!

    [Reply]

  9. Robert says:

    Congrats on dumping the debt!

    [Reply]

    Mrs Money Reply:

    Robert- Thank you! It feels great.

    [Reply]

  10. Good for you. I think credit cards are evil. I feel guilty every time I use one to buy something on line. I need to find a better ‘secure’ way of paying for things like plane tickets.

    Mrs Money, do you have any ideas? In France, you can use your online banking system to generate a one time credit card number for a specific purchase. I’ve never heard of anything like that for US banks. . .

    [Reply]

    Mrs Money Reply:

    Simple in France- I know, I feel guilty too. I do like paying online with my credit card for the same reason though.

    You could use a prepaid debit card. I know Walmart sells them, and you should be able to get them online. I have heard of that system generating a one time card number. I think that’s a great idea!

    [Reply]

  11. Kacie says:

    YAY! You’re right — it’s not worth making payments for $1.50 gain. It feels so good to pay off those cards. WOOO!

    [Reply]

  12. Kacie says:

    Oh, and for Simple in France — Try PayPal! You can generate a one-time card # for your online purchases.

    You can add money to your PayPal through your checking account, so as long as you’re comfortable with the process, it should work!

    It’s a “virtual card” or something like that.

    [Reply]

    Mrs Money Reply:

    Kacie- Thanks! You really helped me see that it was a wash. :)

    I hadn’t heard of that feature from Paypal, but that’s awesome! I learned something new today. :)

    [Reply]

  13. AWESOME! We paid off our consumer debt last year, but we have some MASSIVE student loans and a mortgage to boot. We’ll keep chipping away at it!

    [Reply]

    Mrs Money Reply:

    Jason- Thanks! Student loans can be the worst! It sometimes feels like you’ll never get out from underneath them. Keep on going! :)

    [Reply]

  14. Little House says:

    That’s terrific! How exciting to be so close to being completely debt free. Good luck with paying off your car too!

    [Reply]

    Mrs Money Reply:

    Little House- Thanks! I know, it’s so close I can taste it!

    [Reply]

  15. Rock on!!! That is fabulous…

    Its weird how so many PF pundits promote the idea of having savings over getting rid of the debt? We went without savings while we were building the debt so I never saw any reason for having savings while on the way out.

    I am so happy for you! Time to celebrate… Have a class of tap water and say Yeah!!!!

    [Reply]

    Mrs Money Reply:

    LeanLifeCoach- Thanks!

    I hadn’t thought of it that way but that does make sense! I hate debt.

    WOO water with lemon for everyone, on me! :)

    [Reply]

  16. Congrats on ditching the credit card debt!

    [Reply]

    Mrs Money Reply:

    Tom- Thanks so much!

    [Reply]

  17. llbigwave says:

    Congratulations on wiping out the credit cards! That was our first battle (and victory!) when we got serious about debt destruction 26 months ago. The loan from my retirement plan was next to fall, and now we’re down to the mortgage only.
    Knock out that car loan – it gets much better mileage when it isn’t dragging that payment book behind it (with apologies to Dave Ramsey)!

    [Reply]

    Mrs Money Reply:

    llbigwave- Thanks! That’s awesome. I would love to be mortgage only. That is the BEST saying I have heard! Love that!

    [Reply]

  18. Congratulations! :o)

    I just paid off our last credit card in February, and now we’re working hard on eliminating our medical debt. After that, it’s our car and student loan debts. It feels amazing to see a zero balance on my credit card. I can’t wait to see lots of zeroes.

    [Reply]

    Mrs Money Reply:

    Saving Her Life- Thank you! :)

    That’s great. I hope you get all your zeros soon! :)

    [Reply]

  19. Congrats to you and welcome to the Yakezie Challenge! We’ve got a badge for members to put up, a google groups, and a carnival. Check the original post at the bottom for more details.

    Look forward to seeing you around more often and helping out the team. Ryan from Planting Dollars highlighted this post in his wrap today, so hope you can do the same for him one day.

    Best, Sam

    [Reply]

    Mrs Money Reply:

    Financial Samurai- Thanks! I sure will. I would love to host the carnival too! :)

    [Reply]

  20. Katie says:

    Congratulations! That’s awesome.

    @Simple in France: Do you have a debit card/check card? I use mine to make most online purchases. PayPal has a small charge, but they’re more secure.

    [Reply]

    Mrs Money Reply:

    Katie- Thanks!

    I hadn’t heard of that option from Paypal, but it’s really a great idea! :)

    [Reply]

  21. oh CONGRATULATIONS!!!!!!!!!

    Seriously that is awesome and such a relief, I bet :)

    [Reply]

    Mrs Money Reply:

    FB- Thanks! I can’t wait to get rid of my car loan, and then I’ll be debt freeee! :)

    [Reply]

  22. Congratulations!

    Great feeling huh.

    I usually celebrate in a small way when I do things like these… Maybe a night out at a nice (but not too expensive) restaurant…

    [Reply]

    Mrs Money Reply:

    Money Reasons- Thank you! It sure is. :)

    I can’t wait until my husband has a day off so we can celebrate.

    [Reply]

  23. How exciting! Congratulations.

    My car loan balance was lower than my credit card balances when I started on this path last year so I paid it off first (following the debt snowball method). Now, I’m powering through the CC debt before hitting Sallie Mae.

    [Reply]

    Mrs Money Reply:

    Bucksome Boomer- Thanks!

    That’s awesome your car is paid off. I can’t wait until mine is!

    [Reply]

  24. PT says:

    Hey that’s great. I remember that feeling. Nice work. Good luck with car loan. :)

    [Reply]

    Mrs Money Reply:

    PT- Thanks! I will have that car loan paid off this year. Hopefully before June!

    [Reply]

  25. Lulu says:

    Congratulations!!!! I am working on my credit card also and will soon be free from the clutches of Citi!!!Woo hoo.

    [Reply]

  26. Money Beagle says:

    Congrats, that has to be a great great feeling!

    [Reply]


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