BeckyThere are many different methods to paying off debt. The one my husband and I used and live by is the Snowball Method. This is where you list your debts smallest to largest and start by paying off the smallest debts first. As you pay off the smaller debts, you’ll then have those extra payments to put on the larger debts.
The key to paying off debt is staying motivated long enough to make progress. That’s why the Snowball Method worked so well for my husband and I. It’s far easier paying off smaller debts first. If you try to pay off larger debts first, it’s easier to give up hope and think, “will I ever pay this debt off?!” When you realize how awesome it feels to be one debt richer, you’ll feel the push to keep going!
We also liked to have a visual tracker of our debts to check off as we paid our debts down. I’ve seen people color in thermometers with each debt paid off, but we just did a bar graph for each debt and colored it in as we paid the debts off. It was nice to see a tangible visual of our debts getting checked off one by one.
Cheers to a new year and paying off debt!
