Still doing good

Since we've paid off our credit card debt, things have been good. We are now in our new house and we're really enjoying it. My kids really deserved to have their own room and a place where they can play. It's so great to be in a nice, quiet, safe area.


The phone calls and letters from collection companies have finally stopped and there's a lot to look forward to. The car loan is almost paid off and we're slowly paying off medical bills and once things settle from our move, we're going to start saving for a down payment for a house.


I've gotten a few comments in my previous post about paying off our debt by taking out some money from my husband's savings fund. I completely expected to receive the comments I did and I know that most people wouldn't understand our decision. I do want to say though, that it was not a 401k and it was not a loan. We do have to pay some penalty taxes next April, but we are already prepared for that.


When we settled some of our previous debt last year, we knew the amount "forgiven" would be considered income, we received the necessary tax forms for them and it was taken care of. We are also fully prepared for any money we might owe the IRS for the amount of debt that was forgiven.


My husband and I gave our decision a lot of thought. I guess we did take an easy way out, but it was what we felt we needed to do in order to make a better life for our children. Just to make the record clear, I've never used a credit card in my entire life. All of our debt was from my husband's previous marriage and we haven't charged a single thing in 5 years. All of the credit card accounts are closed, the cards are cut up and we both are looking forward to a better financial future.


But this doesn't mean we are completely out of debt! We are still working hard to pay off those medical bills, we still live a very frugal life. I cook as much as I can, pack my son and husband's lunches, line dry our clothes, go to the library, live within our means, among many other things. We don't go on vacations, buy new clothes or buy frivolous items.


Our mission isn't over, but it does feel damn good to be free of credit cards. I've seen what harm they can do and my husband has learned his lesson. We both made a vow over a year ago that this is a new start and it will never happen again.