How much debt is too much debt?

When is the last time you sat down and added up all of your debt? It is so easy to just get carried away with spending, especially if you have multiple credit cards.

This past week I sat down and totaled up all of our debts we have. As much as I’ve been wanting to take control of our finances, I had yet to do this. I was actually quite surprised with the final number. Our current debts amount to roughly $240,000.

Seeing as you can barely buy a new house equivalent to the size of ours in our area for less than that, I didn’t think it was too bad! Our mortgage and J.C.’s student loans take up the bulk of that number, coming in at $199,000. So the other 41 of that is our car, several credit cards, furniture, and a family member loan.

His student loan is currently deferred since he’s in school right now. The up side of that is we have an extra $400 a month to put toward other bills. On the down side those student loans are just sitting there accruing more interest. And I haven’t actually taken that extra $400 and put it toward anything else. So not very smart on my part.

One of my goals for the year

This year I would like to work on getting our credit cards paid off, since they have the highest interest rate. I think one of my biggest challenges will be keeping the balances down because I am reward crazy. I love getting cash back just for shopping. So if one card says I get 5% cash back on gas for the quarter, then that is what I will be using for the next 3 months! I just have to make sure that I am strict with paying off my balances each month once I do get the cards paid off.

Our actual credit card debt ONLY totals up to a little over $8600. I am not sure if I will be able to get these paid off by December. But I am sure going to try. With one month already down and 11 to go, it averages out to about $781 a month going toward credit cards each month to have them paid off in December. After hearing that in my head, that sounds impossible! $781 a month is a lot of money, especially for us, since we are a one income family. That basically means I have to pick up 2 extra shifts a month and put all of that extra towards credit cards! I don’t know about all that, but I will try!

This is the most debt I’ve ever had and I think it is too much. Do you have any goals this year with paying off your debt?


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