"Job Loss and New Baby"

Getting Out of Debt Stories

A little over two years ago I lost my job as a retail manager. The worst part of it all is that this was 5 days after my first born came into this world. My wife and I had just finished racking up a large chunk of bills for all new baby things, including furniture, clothing, toys, and diapers.

I was out of work for a total of 9 months and we managed to build our credit card debt up to about $17,000.

Since then we have cut every financial corner we can from cutting grocery coupons, to shopping at second hand stores so that we may be able to get our credit cards paid off and back to square one.

We never had to skip payments or go through credit counseling. It has all been about smart spending, and knowing the difference between things we want and things we need.

There have been no vacations, no big dinners out and the last two Christmases have been very modest. My wife could use a new car, and our house needs some updating but those things have all been put on hold just so we don’t drown in our debts.

The worst part of all this though is that we no longer have a savings. We had to spend almost all of it while I was not working to pay the mortgage and pay hospital bills after my daughter came home.

Although we have health insurance the out of pocket maximum was still $2500, and I was making car payments on my car at the time.

The only thing we did during the last two years was put all of the debt on to one credit card that I was able to get o% for 18 months on balance transfers. This was the absolute life saver for us because of this we have been able to almost pay off all the debt up to now. It should only take us about another 6 months and we will be credit card debt free.

This is the first time in my life I ever had to carry debt and I assure you it will most definitely be the last.

Contributed by Chris from Connecticut