The past few months, Anthony and I have been working on paying down our debt. Honestly we don't have that much, just our house, Anthony's student loans and our credit card. It's not a lot of places we owe but the amounts do add up to quite a bit. We decided to start with the smallest debt which was our credit card.
We have struggled to pay down this debt for years, as soon as we would make progress, we would max it out. For years this happened but we decided to get serious (hence the name).
Before we decided how much to pay a month or our goal date, we broke down our bills with the average amounts. Other monthly expenses followed including Mission: Let's Get Serious.
Once we were able to see what our income looked like in ratio to bills and necessities, we decided on a goal date. To find out the amount we needed to pay each month to make our goal we divided the debt into the amount of months. For example, we started in February and wanted to pay off our credit card by June so we divided the amount of our credit by 5 which gave us the monthly payment we needed to pay. It was a reasonable amount so we decided it was a go.
We completed our mission and have now began discussing which debt we will tackle next. We started with the smaller debt first because we knew it would be easier and now discussing the next one is difficult because it's not going to take only 5 months or even a year to tackle the rest. However, that won't stop us from our bigger goal of being debt-free.
I share this with you not to brag but to give inspiration to others to tackle their debt now. I was inspired by Kelly at View Along the Way when she humbly shared the news of being completely debt-free.
Do you have debt? How are you tackling it, smallest to biggest or biggest to smallest?
We have struggled to pay down this debt for years, as soon as we would make progress, we would max it out. For years this happened but we decided to get serious (hence the name).
Before we decided how much to pay a month or our goal date, we broke down our bills with the average amounts. Other monthly expenses followed including Mission: Let's Get Serious.
Once we were able to see what our income looked like in ratio to bills and necessities, we decided on a goal date. To find out the amount we needed to pay each month to make our goal we divided the debt into the amount of months. For example, we started in February and wanted to pay off our credit card by June so we divided the amount of our credit by 5 which gave us the monthly payment we needed to pay. It was a reasonable amount so we decided it was a go.
We completed our mission and have now began discussing which debt we will tackle next. We started with the smaller debt first because we knew it would be easier and now discussing the next one is difficult because it's not going to take only 5 months or even a year to tackle the rest. However, that won't stop us from our bigger goal of being debt-free.
I share this with you not to brag but to give inspiration to others to tackle their debt now. I was inspired by Kelly at View Along the Way when she humbly shared the news of being completely debt-free.
Do you have debt? How are you tackling it, smallest to biggest or biggest to smallest?
