Best strategy for paying off debt

I remember December 2002 plain as day.  It was when Jenn and I made THE DECISION to become and stay debt-free.  I thought that I would share the steps that we took to become debt free.

Joe and Jenn's steps to become debt-free

1.  Committed to each other that we would STOP signing up for more debt

2.  Attack all debt with all available money using the Debt Snowball method

3.  It is as simple as that!!!  In 14 months, we became debt-free except for the house!  We haved lived this way for the last five years, and we are NEVER going back!

Let me explain the process for using the debt snowball.

1.     List all debts from the smallest balance owed to the largest

2.     Pay the minimum payment on all debts except for the smallest one

3.     Pay as much as you can on the smallest debt!

4.     When the smallest debt is paid, take the monthly payment you were making on that debt and add it to the monthly payment you were making on the second smallest debt.

5.     Continue this process with a vengeance until you are debt free!

You can obtain the steps for putting together your own debt snowball along with an example by clicking HERE.

Looking for additional Personal Finance Resources?  You can obtain free tools by clicking HERE and purchase books/materials by clicking HERE.

1 Comment

  1. Ryan Hartsock on July 29, 2007 at 3:34 am

    Thanks for this simple and effective way of getting out of debt…my wife and I are doing it! Thanks for promoting a “no-debt” life.

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