Wow oh wow… Have you heard of a Debt Free Scream? Have you heard of Dave Ramsey? Well I might have mentioned that we are Debt Snowballing per Dave Ramsey and his advice. We have made some not good decisions in our life and are paying for it now. I am just lucky we are both on the same page now before it got way too late.
So the first step we had to do was put our debts down in writing or an app… we used an App of course… We are electronic people. We are actually using two. An App on our phone for debts and a website for our Budget. (I am still keeping track on an excel sheet too, yes I am a nerd.)
We were then supposed to save up $1000.00 emergency fund. Well we already had that luckily so we kind of got to skip this step. We always have emergency money even though we have a billion credit cards. (NOT REALLY)
The next is to start paying off the debt. Dave Ramsey says you only include Debt no mortgages… we have included both but his way is to pay off starting with your smallest balance and work your way down. Why you ask? Well he sees it that if you are seeing something being paid off you will keep going and stay motivated better.
Well I guess we only half believe him because we realized we would save 1% extra by doing high APR first. So we are technically doing a Debt Avalanche instead of Snowballing. We have 14 Credit Cards between the two of us. Don’t ask me to say who has how much, but I am willing to bet your guess is wrong. So yes we have quite a bit of debt. (Ashamed, yes and no, we are doing something about it now so no.)
After the debt is paid off we have a bunch more steps that Dave recommends but after the debt is paid off he has what he calls Debt Free Screams in his studio. How cool is that to let all that money frustration go out the door with saying how much you paid off in what amount of time. AMAZING!!!!
With our mortgages figured in (yes I said mortgages) we are due to be debt free in Jan 2023. (7 years 4 months). Unfortunately and this is what kills me the most, we are going to pay out about $51,000 in interest in that time. Now if we take that out and the hubs student loan we will be debt free in March of 2021. A lot better huh. To me we are not debt free until it is all gone.
I am hoping I can get my hubby to go to Nashville with me to do a Debt Free Scream, he is so shy I do not know if that is possible. I get these weekly emails from Dave Ramsey and in one from this week was a lady’s debt free scream entitled An Inspiring Journey.
I highly recommend checking it out. This woman touched me, I had some tears coming towards the end. Sometimes you need someone else to tell their story to make you go Ah-HA!!!! I can do it too.