Tuesday, December 1, 2009

The debt ball is rolling!

Inspired by a total lack of money, Suzie Orman's book Young Broke and Fabulous, and the Dave Ramsey system that my friends Michael and Hosanna have used to get completely out of debt(yes totally except for their house!) my husband and I have began paying off our debt. It hasn't been easy living on only his salary, my disability check and having ton of medical bills while trying to pay off debt but we've got the ball rolling.
Earlier this year we began by paying off our new bed before the crazy interest kicked in. The next step was to get take a good look at every debt we owed and keep the list handy to remind us how much we want to eliminate it. Then we tightened a few screws and began budgeting for things that can vary grossly like food and entertainment. Doing that and insuring that all things get paid on time has helped us to be able to pay off my car today!
Now the ball is really rolling. From now on each month we'll take the money were were already paying and put it toward our next debt plus what we normally pay for that bill. Our next account should be paid off in two months. Then we'll take that money and use it to pay off the next bill starting with the smallest amount and moving up our list. We're also going to use our tax return this year to pay off debt. If we get a lot like last year we'll also buy a new couch cause we really need it and can not wait until all of our debt is paid before buying it, but only if our return is over a certain amount. With all the medical bills I'm claiming this year is should be big. So anyway, I just wanted to share our success and maybe inspire you to do them same with your debt.

2 comments:

  1. Way to go guys! I'm so proud of you for making this commitment - it's really, really hard work, but SO worth it. When Hosie and I finally started working together to tackle the debt problem, not only did our money situation start getting better almost immediately, but our relationship got a lot stronger too. :)

    -Michael

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  2. Well, we're in a similar situation. Me with the debt and him with the money, so I imagine we'll experience similar successes in the relationship department. Thanks for paving the way.

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