The loan came in, and I have paid off probably around 2/3 of my debt. And I just got my salary offer for the part-time gig -- much more than I was anticipating, plus possibly offering the flexibility to continue with m y morning gig -- so I am breathing easier. But I can't stop here. I need to break the cycle, or in five years I'll be right back in this same mess again.
Here's the plan:
- The debt gets paid off in its entirety. Nothing else gets charged until the debt is paid. Thereafter, if we do have to charge something, the balance gets paid off before anything else.
- I set aside money for Christmas, and spend only that amount.
- The loan will be paid off before we buy a new car.
- Before we buy a house, or even move into a house with higher rent, we will have a minimum of 6 months of living expenses saved up -- ideally 12.
- Until we have that money saved up, we make this house work. If we have to shut down my office and move everything into storage, so be it.