Debt Snowball? What Debt Snowball?
This slightly exaggerated but rings all too true account of my introduction to the Debt Snowball idea is inspired by Day 7 of NCN’s 33 days and 33 ways to save money and reduce debt.
You mean to tell me that once I finish paying off a debt, I take that money and add it to how much I am paying on another debt? I don’t just get to do whatever I want with it and improve my standard of living? Isn’t the whole point of paying off my credit card so I have more money available to spend and less bills to pay? You mean it isn’t? I’m not just paying off my credit card so I can buy more cool stuff? What? I should pay off other debts too? Huh?
But I had *plans* for that money. That $200 could totally buy me some sweet stuff… every single month! I could get some new furniture and a nice car stereo and maybe take a vacation…
You don’t think 7% is a good interest rate to just let slide for a while? My student loans, they’re on a payment plan! They’ll be done eventually. 15 years isn’t really all that long, right? I mean, someone’s got to know what they were doing when they signed me up for the program, right? Right? Someone did, but it wasn’t me is what you’re saying? Remember though, student loan debt is GOOD debt. That means I want to have it, it’s good for me! Think about the tax advantages! So the 7% interest rate cancels those advantages out and then some, eh? Are you sure? Remember, GOOD debt. Sallie Mae loves me, they are my friend. They’re not? They’re always telling me nice things about what an awesome customer I am. Because I keep paying them money… wait a minute…
Dang. But I had *plans* for all that money…. :sigh:
I did eventually see the error of my thinking, and I am totally on board the debt elimination train now. I still daydream about all the things I could be doing with that money though….
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September 6th, 2007 at 9:49 pm
Hahahaha I know what you mean, it seems awfully tempting when one payment finally goes away to quit scrimping so much.
September 7th, 2007 at 8:50 am
Yes! Heh. Ah well. Someday…. I’ll have to save for retirement. lol
September 10th, 2007 at 1:45 pm
I understand. Mr. Micah and I are starting a debt snowball right now. It’d be so much nicer to spend the extra money on fun things, but we’re trying to get a credit card with 29% interest paid off, so yeah…not nearly as good as your interest.
September 10th, 2007 at 11:49 pm
Go debt snowball! It becomes kind of fun actually… sort of. except it’d be more fun to go on a cruise to Alaska.