debt

Get tired of seeing stacked up bills on your desk, counter, or dining room table?

A couple years ago John and I took a Dave Ramsey course.  It really helped us get a hold on all of the debt we had.  There were credit cards, doctor bills, student loan bills, vehicle bills, and all the other monthly bills that NEVER go away.  It was not fun keeping track of all of the different due dates and minimum payments.  We set up a plan to get rid of the smallest debts first, Dave Ramsey's plan.  It works!  I was amazed how awesome it felt to get some debt paid off.  We paid off all of our credit cards, sold a car, sold a truck, paid off some doctor bills, and reduced the bigger debts in chucks that were very noticeable.

Warning: This does not come without some sacrifice.

For me, being in debt is never an option.  I don't like it, and I HATE worrying and arguing about money. I have always worked hard to save my money and pay my debts off as fast as I can.  I hate monthly bills, period!  So, I started a monthly plan so I would only have to worry about them once a month.  I figured up the amount of money I pay out for all the monthly essentials, house, utilities, phone, cable/internet, trash, and daycare, and other monthly debt payments.  After totaling all that up, say it was $1500, I opened a savings account just for bills.  It took me about 2 months to save enough in the account.  After I had enough in the special account for my bills, I transfer the amount needed to my checking account, and I waited til the first of the month rolled around.  As soon as the 1st comes, I get online (which I use to pay ALL of my bills) and just go down my list and pay off each one.  Now, one thing I learned is that not all of the bills were ready on the 1st, but it was no big deal to call and have the billing dates changed around to fit my pay schedule.  So one by one, and only on one day a month, I pay each and every bill that I will owe for one month.  This is such a stress reliever for me.  When I received my paychecks for the month I just place them in the special account, and then on the 1st I transfer just enough to cover my bills to the checking account. For example, the checks I received in May will be deposited in the savings account, then on June 1st will transfer just enough to cover all of June bills.  This is awesome in 2 ways.  I have found that I have saved a lot more than what I had planned since I like seeing my savings account grow with the "extra" money left over, and it helps me keep in perspective how much money I am actually spending each month.  I only use my debit card, or cash, for everything so being able to log on to one bank account and see everything that has come in or gone out is awesome to me.  I love not feeling like I live paycheck to paycheck (which is probably what I do anyway, but at least it doesn't feel like it :D )

I know it may sound kind of confusing, but it is really easy once you have enough saved to cover one month of bills.

I personally only have 2 debts right now, my student loan and my mortgage.  My student loan will be paid off in about 2 months (unfortunately I am not graduated yet so that might pop up again). My mortgage will be paid off in about 7 years, I bought the house in 2007.  This will all be done using the Dave Ramsey plan of once something gets paid off, you take that monthly payment and add it to another debt payment.  I will definitely be throwing a debt free party when that day comes!!!