CamoMama
DIS Veteran
- Joined
- Dec 21, 2011
- Messages
- 1,216
I paid off almost all of my credit card debt, my student loan and dramatically paid down my car loan using the snowball method this year. I paid off the smallest first, then added that amount to what I was paying on my next smallest debt.
I paid off all but one credit card, the largest, but which is also my lowest interest rate (gotta love the military star card). Granted, I was in Afghanistan so I didn't have the ability to spend money on myself all that much, but was still paying all the bills for my home and financially supporting my kids completely while I was gone.
My next car payment isn't due until April, and what's due is about a third of what the original monthly payment was. I started out just paying $5 more per month than the original payment, which went directly toward the principal. For a few months when I had paid off the rest of my credit cards I started paying $50 more than the original payment. I continue to pay that amount even though it's not due, so even more goes directly to principal and the due date moves out farther and farther. I'll have it paid in full at least a year and a half ahead of schedule.
It's harder now that I'm home and tempted to spend money on lunches and coffees and stupid stuff like that. But as long as I keep myself in check and continue to make more than the minimum payments on what I have left I should be fine. I definitely recommend the snowball method, because it's too easy to get discouraged and give up. This way you see results and it's really exciting and awesome to be able to mark things off of your list of payments due.
I paid off all but one credit card, the largest, but which is also my lowest interest rate (gotta love the military star card). Granted, I was in Afghanistan so I didn't have the ability to spend money on myself all that much, but was still paying all the bills for my home and financially supporting my kids completely while I was gone.
My next car payment isn't due until April, and what's due is about a third of what the original monthly payment was. I started out just paying $5 more per month than the original payment, which went directly toward the principal. For a few months when I had paid off the rest of my credit cards I started paying $50 more than the original payment. I continue to pay that amount even though it's not due, so even more goes directly to principal and the due date moves out farther and farther. I'll have it paid in full at least a year and a half ahead of schedule.
It's harder now that I'm home and tempted to spend money on lunches and coffees and stupid stuff like that. But as long as I keep myself in check and continue to make more than the minimum payments on what I have left I should be fine. I definitely recommend the snowball method, because it's too easy to get discouraged and give up. This way you see results and it's really exciting and awesome to be able to mark things off of your list of payments due.
