Zero Credit Card Debt In 24 Months
Posted on July 11, 2006 by Her and tagged debt
The end is finally in sight! This weekend we created a credit card debt snowball repayment plan and discovered that we can pay off all our credit card debt (almost $16,000 currently) by the time we get married! Here's how we are going to do it, using the snowball method. For the next three months, we'll pay $500 a month on our highest rate card. After that it will be paid off. For the next six months we'll put the extra $500 on top of the minimum payment for the next highest rate card, for a total monthly payment of $606. Then that one will be paid off. For the next seven months we'll pay $677 toward the highest card, followed by six months of paying $766 on the highest card, until we conclude with three months of $800 payments on the last card.
Incredible to think that in two years we can finally be rid of credit card debt! I'm so happy we have a real plan now. The end is in sight! And after we finish paying off credit card debt, we can finally think about new goals, such as aggressively paying off my student loan debt or saving up for a home! I am having a lot of fun imagining what we’ll be able to accomplish with an extra $800 a month.
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Sarah | Jul 11, 2006
My husband and I have the same sort of plan for our cc's and student loans. I love it. We need to be frugal, but the payoff is worth it. We will no longer have any debt (besides a mortgage, but we have to live somewhere) in 44 months. How great is that?
The Divine Miss M | Jul 11, 2006
Congratulations! It's such a huge relief to see the light at the end of the tunnel!
A Debt Payoff Strategy is wonderful. The great part is that "Paying off debt IS saving money." and as soon as you get done with "Yesterday's Money" you can immediately convert that Payment Stack payment into "Tomorrow's Money"!
Wow! It must be nice to have such a large sum to put on debts each month. We are doing the snowball thing, I haven't figured a timeline, I bet it helps. Too bad we only have about 10 extra dollars to put towards debt, but it's more than nothing! :)
Aimee,
Don't despair! In fact you are doing better than we were when we started. At the beginning I didn't even have enough cash to cover the minimum payments! I got through it by first paying off my retail credit cards with low balances - this freed up enough cash to be able to cover the rest of the minimums. We paid just the minimums for a while, then paid $100 extra, then $200 extra, and now we're up to $500 extra. Good luck!
First time I visit so I'm not that familiar with you. My great stronghold is debt, I'm drowning in it, so the first tag I went was DEBT. I hope one day I can say I'm sending $500 on top of a minimum payment. You are exactly where I want to be 1.5 years from now. Guys, you are an ecouragement!
hi - glad I stumbled onto this site - and that folks are talking about the debt burden. Amazing that in this country with so much wealth - most of us have traded in our freedom for debt. I ran across this snowball concept about 12 years ago and recently when trying to recreate my own career I found I could make some extra cash helping folks get out of debt - so my new cottage business is www.liabilitymanagers.com - So - come check it out, make some cash in this business as well or at least check out my free report - Truth in Lending - the foolishness of Conventional Wisdom - thanks
Single Ma | Jul 11, 2006
Sounds like a solid plan. When the CC debt is gone, you'd be amazed at the flexibility in your budget. Good luck!
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