The Budgeting Series – Getting out of Debt

October 27, 2011 at 9:13 pm 1 comment

This is where we are now.  Getting out of debt – and this is where we will be for another oh, 2 YEARS. Oh let me tell you, it feels like FOREVER. We have been doing it for a year already and I was all excited and motivated for most of that year but now that we are in the middle of it, it feels like we have done so much work with SO much farther to go.  There are a few things that keep me going.  One of those thing is looking at a picture like this that I took almost a year ago.

I made this debt chart once when I was feeling the need for motivation

and comparing it with this picture I took five minutes ago.

Ahh progress…


We got a bit of help this year that made the progress faster.  The next two years are going to be slow and steady.  So many times, over the months, either my husband or myself would say oh it would be so nice to have ” ____.”  If we just skipped one payment it would be so easy to get “___” “___” and “___.”  It takes both of us to stay on track because most of the time when one of us feels like spending, the other one is feeling a bit more level headed.

We are feeling the pinch right now, but after looking at all the numbers, we are saving SO much money by doing this quicker in interest. Here is the number break down.

We have a 30 year student loan at 6% interest.  If  we paid the minimum payment every month on time over thirty years we would pay 137,266 in interest ALONE.  That is MORE than the principle. By paying off in three years we are only paying 10,352 in interest.  That is $126,914 that we don’t have to give to the government and that makes me very happy.

If you are trying to get out if debt, I highly recommend Dave Ramsey’s Total Money Makeover.  It uses common sense methods and it works.  Getting out of debt is like trying to lose weight, no matter what everyone tries to sell you, it takes self control and hard work from you to get it done. So Dave’s book shows you the method, then you gotta do the work. I have heard mixed reviews about his methods of investing once you are debt free but honestly we are not to that point yet so I don’t really have an opinion there.

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Entry filed under: Budgeting.

Budgeting Series – Our Budget Template Liar Liar Pants on Fire

1 Comment Add your own

  • 1. Trista Teeter  |  October 28, 2011 at 8:29 pm

    Love Dave Ramsey!! He’s the only reason we were able to take a month off for our cross-country road trip. SO awesome to be in control of everything! lol

    Reply

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