Mar 5, 2009

Wooohooo! "PAID IN FULL"

These have to be my 3 favorite words now! Thanks to the Dave Ramsey plan and the debt snowball I have now paid my two smallest debts. This morning I got an email from Best Buy telling me their received my $1281.31 payment and I now have a $0 balance. I have since closed the account and look forward to applying anything we have towards CitiBank... no matter how small. I will even be sending them my $3 check from doing a Buzzback survey.

I can understand why Dave says to ignore the math and tackle the smallest debts, not the highest interest rates first. It really feels amazing to have these little guys gone, even if I had 0 interest on one, and less than $1 interest on Best Buy. Sure it would make more sense to start paying off my van, which slams us with the highest amount of interest compared to these little guys, just because the balance is higher, not the rate... but we won't see results quite as fast with it. Seriously, I would much rather be able to say that I have paid off 6 things, than saying we have paid off one thing that is 50% of our total debt. Woohoo, we are 9.1% closer to being 100% debt free!!

I would like to be between 50-60% towards completion by this time next year. Wouldn't that feel amazing??

5 comments:

Jennifer said...

That's awesome! Congrats! I definitely understand the thrill of paying things off-- I paid off my car loan in January, and am currently entirely focused on getting WaMu/Chase out of my life for good! It's hard, but it's certainly rewarding. And I also send my $3 survey payments directly onto either a debt or savings... every little bit is one step closer to FREEDOM!

Baseball Mom said...

That is great. I have never heard of Dave Ramsey. Nor his plan. But sounds like it has gotten you on the right track. :)

SumnerRain said...

He's pretty awesome, he talks about giving you advice your grandma would have given you, but he keeps his teeth in. It's all VERY common sense, NEVER go into debt, don't buy it if you don't have the money for it, pay off all debt, save & invest so later you can live wealthy and give.

SumnerRain said...

I remember when we paid off the Civic, it was an awesome feeling to finally OWN my own title. It was incredible.

Sarah said...

That is so awesome!!!! My husband and I worked our tails off last year to pay off all our debt and are now only 3 weeks from emergency fund completion!!! We don't have kids so way to go for you doing this with the expense of kids! It sure requires a lot of dedication and hard work but is worth it 100 times over in the end!!!!