Paying Off Credit Card

First let me say that I hated the earthquake that happened yesterday on the east coast. It was not a very fun experience. I honestly never ever thought that an earthquake would happen in Virginia so im sure people in California are laughing your asses off at us. Well har har har.

Moving on…
We moved in with the in-laws in February. We had too much credit card debt to be living in a large city paying so much in rent. Since we have moved in with the in-laws we have paid off $4,705 towards credit card debt. We still have $3,114 to go. We hope to move out of the in-laws by November or December. The question is…do we save money or pay down our CC?

We have to move out by the end of the year. We don’t have to, but we have to…get it? No one is making us move but we have to move for our own sanity. I love it there and I love his family. We are so appreciative of everything they have done for us! But we need our own space. We need to feel like a newlywed couple. We are losing so much of the alone time that you are supposed to be spending your first year because someone is always around. It’s hard to get a little night-time nooky when your little sister is banging on the door asking for toilet paper….yes that really happened. Basically we don’t have enough space or time together.

With that said, we are working on painting a house for a family friend. We will be finished by the end of the week and will be receiving a check for $2,000 for the project. What should we do with the money? B thinks we should put it in savings. I think we should put it towards our credit card. In the end we are going to compromise and put half in savings and half on the credit card. Compromising is what marriage is all about, right? I am very pleased with the decision. We will be building up our savings while also knocking down our CC!

Did you feel the earthquake? Or did you and your significant other make a compromise about something you both disagreed on?

Moving Up And Out

B and I decided to move in with his parents in February. We live in a very expensive city a few miles away from Washington D.C. We had our own apartment but quickly realized that $1,400 rent for two new professionals right out of college wasnt really cutting it. We were getting by but we wanted more than just “getting by”.

It wasnt really the amount of money we were spending. The issue was how little we got for our money. We lived in a 650 sq. ft. apartment. No balcony and no amenities. We were running out of room and eventually felt trapped in our tiny place. We love the freedom but this area was killing us financially. Everything is so expensive…you dont get much for your money.

Over the course of a few months we racked up around $7,000 in credit card debt. I honestly have no idea how it happened. We were always really good with our money, never spent for things we could afford. Until we got that card. I think we used the wedding and the apartment as an excuse. We used that card to book our honeymoon, buy a couch and many other things.

Before we realized it we were 7 grand in debt with an apartment we couldn’t really afford. Moving in with the in-laws was the hardest, most grown-up choice we ever had to make. It was a big punch in the ego. I think B really took it hard. I think it just made us feel embarrassed, like we can’t be a real married couple who can take care of ourselves.

When we decided to move back home our goal was to save money and pay down our debt. In the past 6 months we have paid off $4,046.74 of our credit card debt and have $3,340.70 left to go. We havent saved much at all but we havent added anymore debt. Anything we have bough within the last 6 months we have had the money for.

I think August and September will be really good months financially for us. I get paid 3 times this month and B has some extra hours owed to him from his job. We don’t really have big travels or big expenses so we will hopefully be able to save a lot.

Our goal is to start looking for our own apartment by the end of september. We are hopefully looking in an area 45 minutes from the city. The location is still on the high side but nowhere near what it is where we are living at now. I have found that rent is around $1,000 for a 1 bedroom apartment. Most of these include a balcony and lots of amenities. Our commute will be a little longer but I have been looking for a job in the area we want to move to for a while now. It’s hard to find a job but hopefully soon something will come up.

I feel so much better about where we are financially. Do we have more money than we did then? No. But we have to tools and the knowledge now. 6 months ago I started reading PF blogs and have learned a lot. They have really motivated me to get our finances back on track. We now know how to set goals for ourself. We know how to save and how to spend our money wisely.

I am so grateful for everything my in-laws have done for us….but now it is time for us to be on our own.