This morning we finally paid off P’s dental bill!!!! With this last unexpected expense finally paid, we can get our debt snowball rocking and rolling to start paying off all our other debt (credit card, student loan, car payments, mortgage…the usual).
If you aren’t familiar with Dave Ramsey’s snowball method to get out of debt, let me break it down for you.
You write down all your debt starting with smallest to largest. By the way, this is definitely the most cringeworthy part of the process (it is nauseating to see all of your debt on one piece of paper).
So for example, our debt from smallest to largest goes like this:
P’s dental bill.
My student loan.
P’s student loan.
You pay the minimum payments on all of the debt except the smallest debt. Any extra money you have during the month is put towards the smallest bill along with your minimum monthly payment. Once the smallest debt is paid off you then start to tackle the new smallest debt (which for us would be my student loan). So next month I can put the dental bill payment (which was $225/mo…I really need to introduce P to floss) as well as any extra money we can come up with and pay that amount in addition to my minimum student loan payment I already make (which is currently $150/mo).
With one debt gone, I am sure that I am going to be able to sleep a little bit better this Labor Day weekend.
Hope you all have a frugal weekend!