Debt Avalanche is working!!!

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bustednutz

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Virginia Bch. VA
I've been using the Debt Avalance for the past two and a half months. Starting with throwing any large chunk of money at the highest interest rate debt, regardless of balance amount.
Since I officially started on 2/25/14 I've paid down $5800.00 of my debt. Still have a ways to go. I've been using a site called readyforzero dot com. Its totally free and it graphs and lays out a complete time frame for when you should be 100% debt free. Its truly satisfying to see the graph slowly go DOWN towards the $0 amount.
Trust me, this isn't easy. But is sooooo worth it! Granted I fight with myself internally sometimes and get impatient. But I figure that what took me 8 years to get into, is worth sacrificing for a year to get out of! One year from now (or maybe even less) I will be 100% free from the burden.
 
Good job! Stick with it, and celebrate milestones. For example, when you pay off each debt, go out for a nice meal (or something similar).
 
Originally Posted By: zrxkawboy
Good job! Stick with it, and celebrate milestones. For example, when you pay off each debt, go out for a nice meal (or something similar).


Don't forget to charge it!
 
OP did you think of getting a credit card or two or three that have great balance transfer offers eg 3% fee and zero interest for a year?

Immediately write balance transfer checks to rid yourself of all other debt, cut up the credit cards, and then pay down the balance as you are now.
 
Great to hear. Hopefully it teaches you good habits in addition to guiding you to the zero-debt point.

Mint is another powerful tool for this kind of thing.
 
Well done! Takes discipline and persistence, but the freedom and weight off your shoulders ...
thumbsup2.gif
 
Good for you!!! Speaking from personal experience, the hard lesson I learned early on in my married life was how easy it was to get into debt. We were way in over our head, but finally, we started doing the very thing you are doing now. It took us ten years but we did it. Hang in there as sometimes it will seem like you'll never get there - but with hard work and discipline you will do it and you'll feel so good when you do, (and rightly so). Be encouraged my oil loving friend, you're gonna make it!
 
Originally Posted By: Sam2000
OP did you think of getting a credit card or two or three that have great balance transfer offers eg 3% fee and zero interest for a year?

Immediately write balance transfer checks to rid yourself of all other debt, cut up the credit cards, and then pay down the balance as you are now.


Currently I have approx $10k being carried on a 0% card for 12 months. Thats been helping.
 
Congratulations. As long as you realize what got you into that situation in the first place and are willing to make the lifestyle changes that will keep you out of it again, you're on the right track.

It's amazing to me the number of people that are willing to carry a load of debt around. I can't imagine having that noose around my financial neck all of the time.
 
Great for you.

All my debt load is my home/kitchen remodel but have 65% equity in it.

Not all debt is bad when it has the opportunity of growing like my first home(age 21) with 1% down that sold for 2.5 times original value 7 years latter.
 
What is Debt Avalanche? A method or a credit card?

Good job. I was (and am) always happy to get various loans paid off.
 
Well done. I'm in debt land myself.

Graduating in December, so there will be student loans to pay. Thankfully our only current debt, but it added up quickly.

Looking to buy a home once I have a steady post-graduate school job.

Actually, what is this debt free talk? It is a reality for me whether I like it or not.
 
Originally Posted By: supton
What is Debt Avalanche? A method or a credit card?

Good job. I was (and am) always happy to get various loans paid off.


The idea is basically to pay off all your debts as quickly as you can. Let us say that you have multiple forms of debt... say a car payment and two credit cards.

You start by choosing one (usually the one with the highest interest rate) and pay that off as fast as you possibly can. Then when that's taken care of, you take the money you were using to pay off that debt and apply it to other debt, then when that's paid off take all that money and apply it to the last loan.

As you go along the number applied to each individual debt gets bigger and bigger as you pay them off, creating an avalanche effect.
 
We started doing this our house line of credit too(we have no mortgage), it becomes a bit of a sport to see how much we can kill off in a month.
Now my wife takes it abit too far sometimes... She was after me last night for buying my favorite apples at $2/lb instead of a bag of Mac's at $1.50/lb, but its amazing how little you can spend for a while if you just buy what you need, instead of things you want...
 
Originally Posted By: IndyIan
We started doing this our house line of credit too(we have no mortgage), it becomes a bit of a sport to see how much we can kill off in a month.
Now my wife takes it abit too far sometimes... She was after me last night for buying my favorite apples at $2/lb instead of a bag of Mac's at $1.50/lb, but its amazing how little you can spend for a while if you just buy what you need, instead of things you want...



This above is exactly what I've been feeling. I'm amazed at what I truly only "need" and not want by doing this method. Looking back I cannot believe the amount of money that I would spend on dumb stuff.
 
OP, this isn't directed at you, just an in-general

I find it funny that debt is like drug addiction; as in you get congratulated way more for overcoming it than for never having that issue in the first place!



Once its paid off, start max'ing out your retirement contributions! No CC debt, no car payments. Live BELOW your means and you'd be amazed that you'll be just as happy, but sleep better, and not have the need to spend on 'stuff'.
 
I learned about this is my economics class just a few weeks ago. I think he called it the debt snowball method. It was by Dave Ramsey.. but up in Canada, avalanche is more appropriate.
thumbsup2.gif


I think he recommends going big to small (also depending on interest) but my teacher recommended going small to big. That gives a larger sense of accomplishment. At first interest may seem like a deal breaker, but at the end, they nearly even out both ways IIRC.
 
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