I've decided that I need a reality check, and to do that I wrote down all my debts and added them up. It was a little higher than the $50k I guessed, and is actually $58,060.36. Whew, that is a lot of money!!!
Since I have been living above my means, and using my credit cards like they're a savings account or really a debit account I guess, I've only been able to make minimum payments on my loans and credit cards. I want to know how long it will take me to pay this balance off with the snowball effect, but starting with only the minimum payment. The only way this date would be accurate is if I stopped using credit cards. Paying the minimum payment, and not using the credit cards is something I know I can do so I'm going to mark that date as the last possible date I should be out of debt. To find out this date I'm going to put together an excel spread sheet. Be right back....
*Side note- I say I a lot, but I mean we, me and my family.
Okay, okay, so I’m actually kind of pleasantly surprised with the data I found. I’m a little bummed because I wanted to be shocked, and outraged to help me stay focused on the debt free journey. Instead of outrage the data gave me something maybe better, hope :)
Since I have been living above my means, and using my credit cards like they're a savings account or really a debit account I guess, I've only been able to make minimum payments on my loans and credit cards. I want to know how long it will take me to pay this balance off with the snowball effect, but starting with only the minimum payment. The only way this date would be accurate is if I stopped using credit cards. Paying the minimum payment, and not using the credit cards is something I know I can do so I'm going to mark that date as the last possible date I should be out of debt. To find out this date I'm going to put together an excel spread sheet. Be right back....
*Side note- I say I a lot, but I mean we, me and my family.
Okay, okay, so I’m actually kind of pleasantly surprised with the data I found. I’m a little bummed because I wanted to be shocked, and outraged to help me stay focused on the debt free journey. Instead of outrage the data gave me something maybe better, hope :)
This spread sheet is not completely accurate because I didn’t add any interest, but with out interest and using the snowball technique it says it should take me 4 years and a few months. Why does this excite me??? Well first I thought it would be so much looonnnggggeeerrt. Secondly, if I stop accumulating debt and use the snowball technique with my minimum payment, 4 1/2 years is the maximum time I’ll be debt free!!! Imagine what can happen if I find extra money to throw at this debt! Maybe I can get it down to 3 years, 2 1/2 years or even 2 years!!!
I plan to keep up with a spread sheet if my payments as I go, it will be fun to compare them when I’m completely debt free, or look back on when I’m a millionaire.
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