Saturday, July 5, 2008

Debt Snowball Time!!!!!!!!

I have decided not to focus on paying down my car loan but instead I am going to use Dave Ramsey's method of paying off debt focusing on smallest debt to largest debt. Starting in September I am going to take $1100.00 a month and use that that to pay the minimum balances on all my debt and then apply the extra money to my smallest debt ( which is a Stafford loan of $2726.00). That debt will be paid of by December. The next debt that I will be tackling is my direct student loan which will be paid off by July of 2009. The car loan will come third and will be paid off by December of 2009, which is still a whole 2 years before I am supp0sed to have it paid off. My final Debt which won't be paid off until August of 2011 is my Consolidated student loans which has a balance of $22072.54. Starting in September of 2011 I will be debt free, DH has less debt and will be debt free sooner.

Now this is assuming I pay $1100.00 a month towards my debt. I more likely can pay about 2000.00 a month which allow me to become debt free a whole lot sooner. Right now i don't want to do that, i want to keep the extra cash flow for a few months to beef up my savings and have the extra cash flow for furniture and decorating the house.

I am still working on my budget for august, hopefully I will have it finished before the week is out.

until next time, think prosperous thoughts


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