The Plan

It has been a long time coming and truthfully should have come much sooner, but we have a plan. We have accrued a lot of debt together. Some of it was unavoidable due to massive medical expenses. Some of it was frivolous and unneccessary. Well, it is time to fix this mess. We are taking an approach that Mike heard on a financial advice radio show called snowballing your debt. So, we take the easiest debt (smallest) to pay off and we get it paid off. For us that is our auto loan. We are are about $3K away from having that paid off. That is a $350 per month payment. So, the idea is we get that paid off and apply that $350 to the monthly payment for the next lowest debt. Then we keep doing that until we are debt free, with the exception of our mortgage.

Tomorrow we are making a big step toward making this happen…but it is a kind of scary step. We are shutting off the cable…everything except for the internet. This will cut our cable bill by about 75%. I must admit, while it is kind of scary…it is also kind of exciting to think that in a few years we could be debt free. I’d like to say that we will snowball this monthly amount to the first of our debt, but honestly I don’t think that is the case. We’ve truly been living beyond our means. This is the first step we are taking to live within our means. Even that feels good. For the first time in a few years, I’m really hopeful about our financial future.

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