Independence Day Challenge Complete! (Mostly)

One more credit card down!

A few weeks ago, I challenged myself to run a 5K and pay off $5K of debt by the Fourth of July. Unfortunately, I have fallen off the running wagon. Again. My dad hurt his ankle in the week following my original post and, without my running partner, I let the training slide.

But on to better news: yesterday I paid off our Discover card! I have been chipping away at the balance all month, and still had $1907.22 left to go. I planned on using part of my husband's next paycheck, due to arrive on July 3, to sneak in the final payment and wipe it out. However, I was surprised to find that my commissions last week included a bonus that I thought I hadn't qualified for. After some calculations in Quicken, I sent off the last payment. We are now free from this credit card!!

Our newfound financial freedom is particularly gratifying when you consider the original cause of this debt. We opened the account in October 2005 based on a 0% balance transfer offer. All of our other credit cards were maxed out and at that time we didn't have a lot of resources. We decided to take the 0% offer and transfer part of another balance to the new Discover card. Only it didn't end there. Before we knew it, we had charged up to the limit of the Discover card and the original card. So we were worse off than before.

If you think of debt as a hole you're stuck in, the Discover card was a false step in the right direction. We were trying to climb out of the hole, only to find that the floor was falling out beneath us. I am so excited to finally be one step closer to complete debt independence.

Independence Day Challenge

Back in high school, I ran cross country. I was even first team all state my senior year (Thank you, smallest state in the union). Since then, I have kinda fallen off the running wagon. I played rugby in college, which interfered with the cross country season, and then switched the gym (intermittently) after that. For the past few years, I haven't run at all.

My parents recently participated in 12-week fitness program that jump-started a more active lifestyle. Fresh off that, my Dad decided he needed a new goal to work towards and enlisted me to partner with him. So basically, I got roped into running again, as we are planning to run in the town's annual 4th of July 5K.

Yesterday I was planning on going for a training run, and I wasn't really feeling like going. I made myself get up and do it anyway, because I have to be ready for the 4th of July road race. I made a commitment to my Dad and to myself that I would run in that race. It's only a month away. I don't have time to skip training runs.

So as I was running, I was thinking about the road race and how it mirrored other goals of mine, specifically getting out of debt. I realized that the reason I agreed to run in the race was that I knew I could prepare in time. If I just followed a training schedule, I would be in good enough shape to run the 5K. Similarly, if I follow my budget, I will be able to pay back my debts.

I decided to make a short term goal for the debt payoff. Wouldn't it be nice if, on Independence Day, I was independent of debt? Well, that's definitely too much of a stretch, but what about one debt? What if I can kick one credit card to the curb before the 4th of July?

As it turns out, the next debt on my list (after the tax bill, which is already planned for) is my Discover card. The current balance on that card is $5329.33. Just about $5K, huh? So although it won't be easy, I think we can do it. My Independence Day Challenge is to pay off the $5K before I run the 5K. I have 30 days to do it.

I am challenging myself - and everyone out there - to set a short term goal. By the 4th of July, promise yourself that you will be in a better financial position than you are today. Maybe you'll be independent of credit cards by taking them out of your wallet and promising not to use them again. Maybe you'll be independent of worry by setting up an emergency fund. Maybe you'll be independent of one of your debts, like I am trying to do. It doesn't matter what it is - only that we make positive steps towards financial independence. The point of money is the freedom it provides - so why not celebrate Independence Day a little more free?

How will you be more financially free before Independence Day? Leave a comment, write a post, let me know! Let's all have a little more freedom.