Sunday, August 17, 2008

My 77-Month Debt Elimination Plan

I sometimes watch the Dave Ramsey Show on TV. On “Debt Free Fridays”, Dave lets callers scream, “I’m debt free!” on air if they’ve eliminated all debts (except their first mortgage). Some of his callers eliminate their debt in super-human time. One caller retired his $100,000 debt in a little over 2 years. (That’s $4,000/month in after tax money!)

Up until now, I’ve been paying more than the minimum on each debt, with really no rhyme or reason as to why I'm paying that amount. But starting August, I’ve decided to attack my loans using Dave Ramsey’s snowball method.

Using the snowball method, I expect to pay off my entire debt (approx. $127,373) in 77-months!

I don’t know whether I can follow through with the plan since I expect to be laid off at the end of the year. I just need to remind myself that I need to be flexible enough to adjust my plan to fit my circumstances.

4 comments:

Sallie's Niece said...

Wow that doesn't seem that bad! I should make a similar chart. I bet you can do it even faster. Good luck!

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Shtinkykat said...

Thanks! The biggest question mark with respect to whether I can accomplish this will depend upon whether I can find a comparable job after I get laid off. :-(
But thanks for the words of encouragement!

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