I have recently begun to completely understand the value of "snowballing" debt payoff vs. "avalanching" it. While I know the avalanche makes more financial sense and that's the plan I have set up, I'm smack in the middle of a five-year plan and am just itching for those payoffs to start!
I did pay off one card in July, a few months early, but it was a low-interest, low-balance, low payment card, so while paying it off felt good, it didn't really pack much punch. A smiley face, rather than a gold star, I guess.
Looking at my payoff schedule, though, I have my first avalanched balance due to be paid off in February 2015. (And that balance should only be around $90 so I will probably just pay the whole thing off in January.) I also have one of my hardship repayments that will be paid off in February, just by doing the minimums. Then I have cards getting paid off in March, April, June, August, and October.
(I may even do some debt consolidation to a lower interest rate, so some of those may be technically paid off even sooner, but I want to make sure I'm doing the logical thing and not the emotional thing, there.)
From there I have a couple more cards and a P2P loan, which will all be done by June 2016. (And then of course I have 401(k) loans and personal loans and real estate loans....)
So I'm far from being anywhere near debt-free, but I am so, so ready to be credit card debt free!!
I can't even explain -- and probably don't need to, really, for most people here -- how exciting it is to see the end of credit card debt in sight, after having it hanging over my head for the last 20 years. I find myself obsessively checking my bank account and Mint to be sure I've credited every penny correctly and the payments are on the right schedule, etc. I'm sure subconsciously I'm hoping I'll check and the balance will miraculously be zero!
Off to sing myself a little Carly Simon song and maybe have a little ketchup....
Impatient!
September 11th, 2014 at 05:06 pm
September 11th, 2014 at 05:24 pm 1410456243
September 11th, 2014 at 06:59 pm 1410461972
Of course, after the credit card debt, is 2 car loans, a camper, student loans, mortgage.... we are FAR from debt free but without the credit card debt it'll be so much easier to get the rest paid off!
September 11th, 2014 at 11:59 pm 1410479964
I saw the commercials for Apple watches and fail to understand their appeal.
September 12th, 2014 at 12:31 am 1410481904