Monday, November 30, 2009

Debt Snowball

Good afternoon to all my readers! I just wanted to do a quick post to brag a little bit on my wife and I. In October, 2006, we decided to attend Financial Peace University at our church. This is Dave Ramsey's program. We finished his first step pretty quickly by putting $1000 into an emergency fund. That's covered us so many times since then.

The second step is the Debt Snowball. This step basically means taking your lowest debt ($ amount) and paying it off first. Then, apply the amount you were putting toward that to the second lowest debt. This continues until you are making very large payments on your debts. The last I looked, we had paid off 52% of the debt we had in October, 2006. We've paid off two credit cards over that time. This morning, I was able to go to the bank and pay off my truck, using my bonus check and just a little from December's budget.

I'm so excited to see us making progress on our debts. All that's left now is both of our student loans and an equity line of credit. We should be making payments of around $500 toward my wife's student loans (next lowest dollar amount) as part of our debt snowball. I estimate her loans will be paid off sometime in late 2010 or early 2011. This snowball is getting bigger and bigger! It's going to feel so great to be debt free!!

I do have to admit that I count it all a blessing that God has given us the resources to pay off this debt the way we have! Without Him, I don't know where we'd be today!
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Vodka Logic said...

Well done and sounds like a great idea

Midday Escapades said...

Congratulations to you and your wife, Matt! Wonderful news. Y'all are doing so well.

Chaotic Kristy said...

Wow that is so great I hope to find a program like this when my husband and I get back on our feet.