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I have yet to pay off the house, but my wife and I (similar situation to the two of you) managed to pay off $47k in debt (credit cards, student loans, and car l
by redblacktree 11y ago
I have yet to pay off the house, but my wife and I (similar situation to the two of you) managed to pay off $47k in debt (credit cards, student loans, and car loans) in two years. In the months that followed, we saved a six-month emergency fund. We just stuck to a budget, and put every other penny on debt. We followed the Dave Ramsey plan. People poo poo him for not being sophisticated enough, but it's about changing behavior, not doing math.
Anyway, I just noticed that you said "no way," and I wanted to provide a counter example. Good luck!
- johnward 11y agoI'm taking the snowball approach right now too. Maybe I will eventually get to where I can put away 20% but for now that extra money goes to paying down debt. Aside from $100 a month that goes into an emergency savings fund and 4% into my 401k.
- redblacktree 11y agoWhen I started the snowball, I stopped contributing to the 401k, in an effort to be as focused as possible. I think that's one of the great strengths of Dave's plan. Being focused solely on one goal at a time gives you a quick feeling of accomplishment as you start racking up wins. If you spread your efforts out across too many goals, you may get discouraged when you don't seem to be making fast progress on anything.