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Struggling to pay off debt?

Ready to get those credit card balances to ZERO. Ready to have cash in the bank and stop the ‘I owe, I owe, it’s off to work I go’ song?

According to Elite Personal Finance the average American household has $5315 in credit card debt. This does not count car loans, ‘buy now and pay later’ debt, or any other debt. Here is a website that will show you the average American debt by age.

That's a whole lot of money (billions and billions) going towards paying off things you no longer like, use, are broken or even missing, right?

Now, there are many different ways to pay off your debt. The easiest, and most satisfying way, is the debt snowball method. This is the method that I used to pay off our debt and I LOVE it.

What is a debt snowball anyway?

A debt snowball is a strategy. It is a method for you to pay off your debt quicker. It is a way for you to become debt free. The best thing about the debt snowball is that you get faster gratification as you see those debts get eliminated. Wikipedia has a great definition – Debt Snowball Method.

How to get started with paying off your debt with the debt snowball method:

Make a list of all your debt. Include the interest rate and your minimum payment.
Put them in order from lowest balance to highest balance.
Continue to make the minimums on each.
Figure out how much extra cash you can contribute to your debt. Not sure how to find extra money – ‘How to Save Money | 40 Simple Tips‘. (The amount of extra money will depend on how serious you are about paying this debt off. The more money you add the faster it will be paid off and the more money you will save on paying interest).
Add the extra cash to debt #1. This will look like: Minimum Payment + Extra Cash.
Once debt #1 is paid off (YAY YAY YAY) take ALL of that money + the minimum payment on debt #2 and pay that amount monthly.
Once debt #2 is paid off take ALL of that money + the minimum payment on debt #3 and pay that amount monthly.
Continue until you are debt FREE!

The debt snowball method looks pretty easy, right?

Yup. It is easy…here are few of the difficulties you might find as you are working towards your goal of becoming debt free.

Staying on track.

Solution: Figure out why you want to pay off your debt. Are you tired of sleepless nights, paying for things long broken or destroyed, being strapped for cash…want to go on vacations? Whatever your it is…keep your why upfront and visible. This will help you stay on track.

Spouse not on board.

Solution: A husband and wife MUST be on the same page about financial decisions and budgets. Layout the facts and figures. Explain how interest paid is like throwing cash out the window. Present the long term plan – future savings, vacations and money for retirement.

Family not on board.

Solution: Gather everyone around and explain what the plan is. Be honest. Tell them why you have this new plan. Tell your kids that you spent too much money and you want to pay it off and get out of debt. Kids know that something is amiss anyway cause the biggest reason couples fight is over money. Once you explain your plan of attack make sure everyone understands that ‘not now’ does not mean ‘never’. Maybe even offer an incentive. Pay off debt….extra cash saved towards a family vacation or something else you can all enjoy.

What to do after paying off your debt with the debt snowball method

As the old saying goes ‘old habits die hard’. Those credit cards are now sitting there calling your name. If you feel that you can’t control your spending cut them up. (Before you do that cancel them).

You really MUST start a budget. I have so many budget posts ready for you. They will definitely help you start, and stick to, a budget. Need to know the purpose of a budget? Got ya covered there too!

Go on and grab my FREE Debt Snowball Tracker – this will help you organize your debts so you can pay them off quick and find your financial freedom! Freedom from debt!

DEBT SNOWBALL WORKSHEET

Enjoy paying off that debt. One day you might be the queen of cash too.

So many budget posts for you to read:

Now, sometimes debt can get pretty overwhelming, right?

And sometimes, when you are overwhelmed, stress sets in.

And when stress sets in it is sometimes difficult to be happy or joyful. So, please don’t let stress have the last word!

Go on and take a look at the ‘Top 5 Stress Reducers’ (Action Plan included). So that you can eliminate what causes you stress and get on the path of living a joyful life.

What is Joyful Living all about?

Joyful Living is ALL about not letting let the circumstances of YOUR life determine who you really are. You learn to choose YOU instead! Not sure how to do that? Let me help!

To begin, go ahead and read:

What is Joyful Living?
5 Simple Steps to Choosing Joy
Finding Joy in All Things
What Does God Say About Joy?
Difference Between Happiness and Joy