Our Debt Free Journey
I’ve talked about this on this blog several times about getting out of debt. Well, our adoption paperwork has opened our eyes to the bigger picture. We knew we were in debt, lots of debt. But we never sat down to figure out what our net worth is. In the adoption process, you have to disclose your assets, your liabilities, and your net worth. Seeing a negative net worth really put things into perspective for us. So here we go again. Debt Free Journey take 51 (okay, that’s an exaggeration but you get my point).
I’m going to break it down into real numbers here, the exact amount of debt we are in and we’re going to take you on this journey with us… here!
As much as it pains me to say how much we owe at the same time, I know that there are others in the same boat as us. So here it goes. We owe $410,163.67 as of today, April 24, 2017. It’s insane. That’s 2 mortgages, 11 credit cards (store and regular credit cards), 2 personal loans, 1 car loan, and 4 student loans.
While I understand Dave Ramsey’s Debt Snowball Method, I don’t think the Debt Snowball Method is for Kevin and myself. We’re going to start with the snowball method for our smallest debt ($747.95 with an interest rate of 24.4%) and pay that off. Then we’re going to start using the Debt Avalanche Method with the rest of our debts.
So what are we starting with? $200 on top of our minimum payments. May 1, 2017, is when our plan goes into effect. Any spare dollar we have is going into paying off our debts as fast as we possibly can. Not because of our adoption, but because we want to set an example for our children. In 10 years or less, we can be 100% debt free all starting with an extra $200! That’s not including any of Kevin’s over time or per diem pay, not including raises or when I go back to work when Ryleigh goes to school.
Once a month, I want to start posting an update both here on the blog, as well as a video for our ‘Journey to Being Debt Free’ Playlist on my YouTube Channel. I haven’t decided when I will update, but it will be on a monthly basis. I might post them on the first of the month for the previous month. Either way, this will happen. It is going to help keep us accountable for our debt situation. Be sure to subscribe for our monthly updates!