This was great Tsh. We LOVE living debt free, much simpler, and will never go back to that bondage truly I believe it is. Great, Great, Great advice!!. Laziness keeps me in debt. My husband and I have been married almost 29 years. We married right out of high school.
I am so thankful the Lord instilled in my husband the wisdom to avoid credit cards. BUT we did have vehicles that we paid for for many, many years. Perspective — A better way to look at it than we almost never get to save any of that extra money! The debt snowball is a great tool to use to get out of debt. Great post! You outline everything so well. I used this approach to finally kick my credit card habit last year. It does take a little sacrifice, but the reward is so worth it! As you budget, you also learn what is really important to you and what you can easily live without!
The main focus of our blog is how we live debt free. Getting rid of your debt is truly freeing and you will never want to go back into debt no matter how nice that shiny car looks in the dealers lot. We have had the opportunity to hear him speak in a few different conferences and he is very entertaining. He has a way of convicting us of our consumerism mindset and challenging us to break out of the mold. It is a painful process to get out of large amounts of debt because it is a major lifestyle change. We started the debt snowball last August, after years of struggling to pay down debts using the minimum payment method.
It helps me declutter and earn a few extra bucks at the same time. Man, that snowball. Definitely printing this out for future reference though.
It seems like a good idea and it is if you have smaller debts. If all your debts are large then the debt snowball might not work for you. It works with all sizes of debts. At that rate you will only be able to get your snowball rolling first debt paid off after 5 years! This can be a never-ending cycle. It was awesome, and I have told lots of other people about it, too. I was debt free except my mortgage — wonderful. It really is the best system out there, and such a rush when something is paid off that you have worked for. I did start making more money during that time, too, so I related to that part of your post — thanks!
Love, love, love this post! This is a great, simple guide to getting out of debt. This is exactly what my husband and I are doing right now, and it is working! We are living simple, eliminating debts slowly but surely, and reaping the rewards of finally living responsibly. Thanks, S.
Bring on the snowflakes! This is a great post, even though currently its not applicable to me and my family. You see, aside from a student loan and the mortgage, we have no debt. Though, in our case we are just decreasing the extra mortgage payments for the next few months. We did that with our second, and it was so great not to owe a dime in medical bills. Way to go. I appreciate your list too but what tips do you have for us that are dealing with accurring medical debt.
And yes, I have insurance. You could even call him and ask him yourself. HSAs are supposed to be a great way to save for medical expenses — maybe do some research on those. Thank you for your reply. We are currently doing the Total Money Makeover and are almost debt -free. It is so exciting to see us putting so much effort into alleviating our monthly debt. We need to get gazelle intensive over here right abt now. I am so thankful for the simplicity of it all. This sounds awesome for those with mutiple debts. It would be so easy to write down and post a single list — duh.
Just cut them up. We have been doing the debt snowball for almost a year and it feels like slower than snail speed. Now it feels hopeless again, it will take us 4 more years from now.
We have always lived by a budget, paid off our credit cards the first six months we were married, and never used them again. Our debt is a car, student loans, and the house is there, but I am not counting it. It can be so discouraging. I will say, we are adding little ones to feed, my husband is going back to school and we are paying as we go, no student loans, and I am able to only work weekends now so I can be home during the week and homeschool our children. And they seem pretty comfortable with life while we struggle to live the way we feel called to. Any encouragement? Oh, be encouraged, Adriana!
And it may feel like your snowball is taking forever, but just think…. It takes work and sacrifice. Its a bit of risk with a 9mnth old, but if we stay where we are staying now, we will always live on the verge of a crisis. My hubby and I stated the Dave Ramsey plan about 2 years ago and it has changed our lives! This post has hit home again! Gearing up for round 2, I know it will be worth it!
We bought the Dave Ramsey book after I read posts on your site about paying down debt. Even on one income and two kids it is encouraging that we can still see our debts decrease with some organizing and planning. Thanks for the post! Great post, we all need a little reminder now and again.
Debt can be so unforgiving! Do You Need Extra Cash? I know that childcare is a concern, but if you truly are in a desperate situation, try finding a part-time job! Maybe you could take an evening part-time job, while your husband is at home with the kids. We utilized this strategy, and it was completely worth it. It was grueling, hard work, but now we are debt free.
Be willing to think outside the box to bring in additional income. This post is simply great! This year, my husband and I canceled our credit cards and now buy either cash or use the charge card which we then pay in full at the end of the month. That helps us stay within the budget and also, put aside money in the savings account. Thank you for posting this! This is wonderful!
I know some people this this could really help! Often if I explain with kindness that I would like to have the APR lowered, they will change it a bit. This helps remind them I am a real person — and I have had better luck with this and speaking from the heart. In your example Citibank card interest rate was much higher than The Gap card rate.
Would you not apply all of the snowball to knock that debt out first? Sorry, I just saw your addendum at the end of your post. Yes, there are two ways to do it, but I think the best psychological boost of paying off your debt more quickly surpasses the method of paying lowest to highest debt and not addressing the interest rates. Basically, anything that appeals to our instantly gratifying desires. Saving money and paying debt is NOT instantly gratifying. Thanks for sharing your thoughts and encouraging me to keep pressing on.
We had attempted to do FPU Financial Peace University on our own, without the actual videos about a year ago, and I loved the envelope system, it helped us to see what we were spending money on, it was very eye opening. Thanks for the very timely post, it was encouraging and gave me the nudge to discuss it again with my hubby!
Party Planning — Big Top Circus! What a great post! I am forwarding it to my daughter. We have remained mostly debt-free except for our mortgage and a car payment. I have MS and it is progressing. Because we live below our income level, I was able to stop working and concentrate on getting through this difficult period. This is great. We took the DR course but my husband had a challenge with implementing since he is in sales and a constantly fluctuating income.
So we are having to really work at our communication as the income changes. I also love the snowflakes links!! We listened to Dave Ramsey on an Audio Book and it was great. Thanks for these great tips! One car loan to go and then to tackle the mortgage! Thanks Tsh! Thank you for sharing. Thank you for this post. The things I could say about our debt journey!
This is brilliant.
Join my list to have a rich life now. Budgeting should be easy and—dare we say it—fun! These numbers are apropos for the average American family. Debt can be so unforgiving! Save More. We have had the opportunity to hear him speak in a few different conferences and he is very entertaining. Guardian Debt Relief can help to reduce your debts and give you peace of mind.
I only wish I had come to it sooner. After successfully paying off a large portion of our debt a few years ago, we made some major life-changes that landed us back in the red. Very much looking forward to being in the black again! I can definitely relate to this. Unfortunately, we are still working our way out of the hole; but making steady progress nonetheless! Thank you for this article!
I feel inspired whenever I read your articles and this is an area where I often feel hopeless. Hi Tsh, I am a teacher and have 3 young children. Sending all 3 to daycare would be over bucks a week. But, my husband and I have school and car loans and a mortgage. Do you suggest making a career move amidst this debt? This is a great post! It felt great! Last on my list was my student loan. I paid it off in a year! Just 3 months ago I made the last payment. I still have the part time job because I love it so much. Great Post!
I love to read your articles on getting red of debts.
Check out these side hustles you can start with no money. Nicholson took a second job at a tax office, working nights and weekends, and lived on two-thirds of her income. Now debt-free, Nicholson continues to lean on herself, managing a blog that provides her main source of income. You might be able to use a balance transfer credit card or a debt consolidation loan to roll multiple debts into one, ideally with a lower interest rate.
Get inspired: When David Weliver had to decide whether to pay his rent or his credit card bill in his 20s, he felt immense guilt. Eventually, the strategy paid off. The Brandows created a budget, cut expenses and used a debt management plan , eventually becoming debt-free after 50 months of repayment.
It will take sacrifice. You must be mentally prepared. At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. Our opinions are our own. Crush your debts faster NerdWallet's free tools help you make sense of your debt, stay on top of payments and track your progress. Get debt-free. Back to top. What's next? We want to hear from you and encourage a lively discussion among our users.
Please help us keep our site clean and safe by following our posting guidelines , and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.