Lightening the Load

My weight is going down.  My collection of “stuff” is going down.  My debt is going down.

In April of 2011 I sold my house and started renting this wonderful condo/house.  Then I looked at my financial debt.  Much better after selling the house, even though I did not make any money on the deal.  My rent is less than half of my former mortgage and I am not responsible for repairs!  However, I still had a big load of credit card debt.  I had been living on my credit cards while trying to hang on to my house.  Anyway, in October of 2011 I joined Dave Ramsey’s “Total Money Makeover” online.

With Dave Ramsey’s help, I started the Debt Snowball way of paying off debt.  Now, almost a year later, I have paid off and cut up four credit cards.  I still have eleven to go, but with this plan I know they will all be paid off by 2014.  Yeah!  It isn’t complicated, but it is difficult.  First…you try to put $1000 in your savings account to cover unexpected expenses.  Then you start with the lowest payoff card.  Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.

So…here we go.  (This is what I did).  List all your debts (except home mortgage) in order of smallest payoff balance to largest.   This provides some quick wins.  Pay the minimum payment to stay current on all the debts except the smallest.  Every dollar you can find from anywhere in your budget goes toward the smallest debt until it is paid.  Once the smallest is paid, the payment from that debt, plus any extra “found” money, is added to the next smallest debt.  Then, when debt #2 is paid off, you take the money that you used to pay on number 1 and number 2 , plus any found money, on #3.  Keep paying minimums on all the debts except the smallest until it is paid.  Every time you pay one off, the amount you pay on the next one down increases.  All the money from old debts and all the money you can find anywhere goes on the smallest until it is gone!  ATTACK!  Every time the Snowball rolls over, it picks up more snow and gets larger, and by the time you get to the bottom, you have an avalanche.   To the exclusion of everything else, you are getting out of debt.

I have paid off four credit cards and am working on number five, which will be paid off by September.  It will take me until 2014 to pay them all off, but I am committed to this plan!  Of course I am NOT using my credit cards.   The photo shows my cut up credit cards that are paid off and my cup up casino cards.  No more gambling…

60% of Americans don’t pay their credit cards every month.  That is me and I am changing that one card at a time.

For more info go to http://www.daveramsey.com

Good luck!

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About alonegwen

Retired educator interested in living life fully. Will write about aging wisely, good reads, food, travel, dance reviews, and other items as they interest me.
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