Finally DEBT FREE! | paid off my credit card debt | how my credit score changed #debtfree

I’m debt free! Here’s my journey to paying off my credit card debt using my 3 month debt free plan….but it took me 5 months and I’ll explain where I went wrong and how YOU can avoid the mistakes I made. I had been paying down my debt for 2 YEARS but only in the last few months did I accelerate my plan so I could be debt free sooner. If you’re looking for a way to pace yourself vs paying it all off in 1 payment, you should watch this video. Comment down below how your debt free journey is going!

Hey it’s kimberly and welcome back to my channel i make videos on all things lifestyle on a budget and speaking of budget i am officially debt free it took a little bit longer than i expected and two thousand dollars more which we’ll get to that in a second but i am finally debt free and i want to break down my entire experience stemming from my debt-free journey

Plan i’ll break down how that went throughout the process i’ll also be giving you tips and tricks if you’re on your journey right now and then i’ll be letting you guys know what is to come next what am i focusing on now that i have completed that credit card debt oh it feels good to finally say that um so let’s get right into it all right so i finally finally

Finally sent in that last payment that is going to clear me up get my debt down to zero and start a new life no not a new life but just start fresh and not have that big weight on my shoulders uh that i’m sure many of you understand whether it’s student loans whether it’s credit cards whether it’s mortgages etc once you pay off anything however big or small there

Is a giant feeling of relief so i’m feeling really good but it is a little bit bittersweet which i’m going to get to in a second but first i want to review the plan that i had set for myself that i shared a couple of months ago when i said i was going to have my three-month journey to uh going debt-free if you want to watch that video to see what the plan was

In an entirety you can go ahead and check out that video i’ll have it linked down below week one i was going to dedicate to taking a thousand dollars and paying that towards my credit card at the start of the month i explained why i do that earlier in the month versus later in the month in that debt free journey video so you can check that out so i did actually

Stick to doing the thousand dollars a month which i think is a great idea to take a large chunk but here’s where you may come into some pitfalls originally i was only going to be using that credit card for the auto pay bills that i already had set aside which is about 200 to 300 a month i plan on doing that going forward that was a tip from the budget nista that i

Absolutely love what i didn’t account for were the unexpected bills that i did have come my way if you remember in one of my what i spent in a month i explained that i had some union dues that were basically over five hundred dollars now if you’re doing that quick math with me my union views were over 500 bills were about 200 to 300 and then i had a couple rides

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There services mixed in in there that ended up being up to almost a thousand dollars if you’re spending a thousand dollars and then you’re also paying a thousand dollars guess what it cancels each other out and it does nothing so that basically set me back so one tip i want to have is to keep track that when you are paying off your bill you want to make sure that

You’re doing an amount that is going to cover the expenses that you do still have going on and then even more so once those purchases cancel out there’s actually money that’s going to be paying off what you previously owe from however long you’ve had your uh credit card debt and this is obviously in the case if you can’t just pay your credit card off now for week

Two and three which i was saying was dedicated to doing my investments i actually just stalled that completely so i could focus strictly on paying down this debt as well as enjoying my summer sorry i said it out loud in this moment i wanted to pay down the debt but i also didn’t want to completely restrict myself now you can be on it and you can absolutely pay

Down your debt and still do your investments but for me it was summer and i still wanted to go out and do things my goal was that once i was done paying off this debt now i can get back and kind of catch up on my investments and also summer’s almost over so i know i won’t be out in the streets as much because i’m someone that just only loves summer and like no

Other seasons and in the fourth week i just use that for the rest of my other bills so like i said i have some bills on autopay that i can pay off with my credit card but i also have some bills in my regular account that i need to go through and pay so that’s what i left for week four and then i would kickstart back to the next month and do it all again now another

Issue that i did run into and again if you know a lot about credit cards this will all make sense to you but if you’re new to it and you might not realize what’s to come if you don’t pay off your car do you have interest charges the interest charges do add up as i was paying down my debt i was still getting charged because the debt was not paid completely my credit

Card was not paid off to zero there was a remaining balance and therefore i had a charge each month so roughly for the months that i had basically i was paying off in april may june and july i also made an august payment but obviously that’s not going to show up right away just yet but i had a back and forth between 46.39 every single month so think of that as

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Another bill you would be adding on to your charges and basically i’ve had those charges for however many years i’ve had this card now because i was never paying it off completely so i’m happy to say that finally i don’t have those charges in the moment i don’t want to see those charges i’m glad to be back at zero and i want to keep staying there that was five

Months not three months for my debt-free journey and i ended up doing five thousand dollars instead of the 2900 that i mentioned in that very first video in april where i was like i’m gonna pay a thousand dollars and then the next month a thousand dollars and then 900 and everything’s gonna be great i was really really excited for that i thought it was just a

Straightforward plan but i just made a rookie mistake of not even taking into account the other expenses that might come up my last month i didn’t do a thousand dollars i did 1800 which was what was left over and i just was like let’s clear it i did have the money that is the difference if you don’t have the money don’t get yourself into a situation that you can’t

Get out of it was more beneficial to me to pay a large chunk that i could afford in the grand scheme of things versus to keep going at the pace that i was going at sometimes you just have to speed it up i will say i was getting pretty impatient and that’s what i mean by the bittersweet moment is because i realized that this was kind of going to be a never-ending

Cycle until i ended it myself it’s like a toxic relationship now i’m going to get transparent and i’m going to share what my credit score journey was in the time uh beginning in march in march when i was paying like 700 a month or so my credit score was 7.51 but in april when i started to pay the 1k it didn’t change but in may it went up six points to 757 which is

Great in june it went down one point to 756 and i think that was around the time that i had set myself back with all of the bills that i had that union do as well um where i had that extra thousand dollars in charges that’s why it sent me back but it only sent me back one point so that’s okay then though in july i came back swiftly with an eight point lead i ended

Up at 764. now in august before i did my final payment it went up nine points to 773 which is awesome now i am gonna have to update you all on the august credit score change after all of this clears so probably going into september because again this credit score came out before i paid everything off what’s it going to be am i going to like fly to 800 i don’t know

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773 i’m not sure how much it’ll go up and i don’t know how the points work i don’t think i’ve hit that before but i think i’ve always been in this range this 750 range which is great it’s something that i mentioned in my apartment videos about having a high credit score and how that is beneficial but yeah i’m definitely going to update you guys maybe i’ll write it

In the comments or something like that once i find out i’m assuming it’ll be around september i’ll get the exciting little email that i love getting uh where it’s like yeah your credit score is moved i’m assuming that as long as i continue to pay it off going forward that it should stay in this high range okay moving forward what is my plan now that my debt has been

Crushed which is awesome this has been in the making for so many years now but it’s mostly because i wasn’t doing anything with it um so to finally be starting a fresh anew my next main goal is i want to dedicate myself to really working on my emergency fund and my savings investments they say three to six months having that kind of stacked away so my goal is to

Do that i am like a couple months i would say saved up but let’s you know extend that as much as we can please never know what’s going to happen that is where i am at right now i am very very happy i’m glad i realized sooner the journey that i was going on and how i can make it better and if anyone is curious yes i am still doing my best to abide by the monday to

Friday no outside spending i’ve really only been spending on metro card rides if i need to go somewhere and then on the weekends is where i like to have my fun specifically i try to focus on not spending on outside food because that really does add up the monday to friday thing totally helps me i always kind of highly recommend it because it just gives you such

A shift in perspective and boy can you walk faster on the way home when you’re really trying not to buy anything i’m just like like don’t look at anything don’t look at anything just go straight home eat the food that you got whatever but um it actually really helps and then shopping i’m so proud of how much shopping has just kind of decreased over time debt free

It is i’m very happy finally made it let’s have a discussion down below where are you on your journey what are you saving up for next what budget impulses are you trying to control so that you can save up for x y and z if you’re on the journey i believe in you you can do it i am cheering you on thank you guys so much for watching and i will see you in the next one you

Transcribed from video
Finally DEBT FREE! | paid off my credit card debt | how my credit score changed #debtfree By Hey it’s Kimberlee!