Posted by: mahlbrandt | July 24, 2008

I hate debt!

Today we put the check in the mail for the last payment on our Focus! It feels so good. I can’t wait to get the title in the mail. This is the first step in our debt snowball* checked off. The ball is rolling! We now have two paid for cars. (One car is thanks to a generous gift from my parents and the other one is thanks to $11,000 of our hard earned cash. That’s right, we just finished paying $11,000 for a car that is now worth about $4000.) We are determined never to have another car loan ever again. Or any new loans for that matter. So that’s it; we just paid our last car payment EVER. Aren’t you jealous? You should be.

*The idea of the debt snowball is to list all of your debts from smallest to largest. Pay minimum payments on all but the smallest. Attack the smallest with “gazelle intensity,” paying as much extra as you can squeeze out of your budget. Once the first one is checked off (yay, no car loan), take that amount that you were paying on the first debt and add it to your monthly payment on the next smallest debt (Jason’s school loan). Once that debt is paid, add what you were paying on the first two debts to the third smallest (and last ‘cept for the house in our case, my school loan) and so on. I’m so excited to see the snowball picking up speed and the debts disappearing!


Responses

  1. Congratulations! That is a huge step… Are you going to Call the Dave Ramsey Plaza yet?! : )


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