Paying Off Debt One Debt At A Time
Within a few months time, we’ll have paid off all but one of the bigger debts we owe – our little home. However, without any other significant amounts owing, we’ll be able to concentrate on getting rid of that last one.
The Snowball Effect
If you haven’t heard of or know about paying off debt using the debt snowball method let me explain. It’s really quite simple and brilliant:
- You take your smallest debt and concentrate all your efforts (meaning ANY extra cash you have each month) on paying off that debt.
- Once that debt has been paid in full, you take the money that you have been putting toward it and add it to the payments for the next smallest debt owing.
- After the second debt is completely paid, you take all the money that was put toward the former debts and add it to the next smallest until that one is paid off too.
- Continue with this method until all debt is paid.
You won’t miss the money because it had already been designated for debt. And with the extra payments, you’ll pay off debt much quicker.
You’ll find that your debt load will continue to dwindle. Believe me when I say that it is a great feeling when you are freeing yourself of debt.
Combine Snowball Method And Tiny Housing
All this has all been possible by our decision and action to move to a small, less expensive home.
After years and years of struggling just to get by and debt that kept piling up with no end in sight, we got smart and realized that we couldn’t keep going the way we had been living.
It wasn’t until we actually got rid of the big house with the associated big expenses and time consuming extras, everything started to look up. And now, almost two years later we are on a huge upswing.
And we don’t miss the big house. In fact, our life is better now that it has ever been before. We can see the day when we’ll be completely debt-free!
This is one of the main reasons why we are so passionate about spreading the word about tiny houses!
Are you interested in learning more about tiny houses and how they can improve your life too? A good place to start is with the information in the tiny house books that we recommend.