debt snowball

Quote from Dave Ramsey Step#2  www.daveramsey.com

“List your debts, excluding the house, in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first.”  Using this formula you will pay off all debt using the debt snowball.

I have used this exact formula myself! Chris and I were able to pay off over $100,000 in credit cards bills and high interest loans. We had fallen into the trap of “buy now pay later” on everything from furniture to treadmills to trips to name a few! We did pay later and MUCH more than anything we bought was worth. What’s sad is that we would keep repeating this pattern of spending. Almost like yo-yo diets we would get out of debt go back in debt… and on and on for years.

Our turning point you ask?  Was finally realizing this was a heart condition not a bank account condition. We both had great jobs and made more than enough. The problem was we wanted things NOW and did not save for major purchases. What we were really doing was trying to fill a need or emptiness, wanting to fit in with the latest and greatest toys. If this is you friend be encouraged! We had a very deep whole that we slowly dug out of and were able to pay off all debt using the Debt Snowball.

No, not at the doctor… in the mirror. That’s right take a good long look and ask yourself what is missing. What is the empty space you are trying to fill with STUFF? Perhaps you feel you don’t measure up and are trying to meet someone else’s standard, probably people you don’t even like! Say this out loud… THEY DO NOT PAY MY BILLS!! Truth be told THEY are probably in debt too 😉

So whats a guy or gal to do? Like Dave says to pay off all debt using the Debt Snowball start by paying off one card today with the smallest balance. Whatever it takes to do this, do it. Take action, take baby steps and take time to ask yourself each day “whom shall I please”.