James Posted March 17, 2021 Share Posted March 17, 2021 I was not always the best with my cash. My wife and I had student loans, credit card debt, auto loans, and a mortgage. It all added up to such a huge number. It was like staring down the barrel of a gun. I was unable to see any light at the end of the tunnel. I decided to take a step backwards because the problem was to large and was a bit overwhelming. I built a spreadsheet and organized the debt by interest rate. I then started focusing on the highest interest rate debt. Month by month we were paying down those credit card balances (made us really think about what we were buying and why). Once the first card was paid off the second and third cards went even faster. We then turned to the auto loans and busted those out. Then the student loan debt (I never finished my degree and wife got hers but does not use it in her daily life). Finally after all that debt was paid off we turned to the house. Seven years later we are free! Yes it was a process and it required consistent action and consistent thought. We had to change our spending habits and learn how not to be consumers. Every bill that got paid though just made the process even faster for the next item on the list. Dave Ramsey knows what he is talking about when he talks about the Debt Snowball Method. With anything this is not something that needs to be overcomplicated. It just takes some lifestyle changes and consistent action towards the goal of being debt free. Have you been in debt and broken free? Are you currently in the process of breaking free of your debt? Would love to hear about other methods people use to pay down debt and get their life back on track. 1 Quote Link to comment Share on other sites More sharing options...
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