It’s all about the short-term goals

September 5, 2010 at 6:43 am (snowball payments)

I’m completely obsessed with my most current debt goal – getting my BECU personal line paid off. Once that is at zero I will be officially under the $30K mark! I feel like that is a major milestone, like the remaining debt is much less of a big deal. It will still take a few years, but it’s a mostly psychologically smaller amount.

To assist with paying it off, I just had a yard sale last weekend (already mentioned). I spent yesterday photographing the more expensive items that I think might sell, and posting them on craigslist. I just sold 2 items for $45, so today I moved all of that towards debt. Those little amounts all add up! I have a bunch of product from a company I used to work for over 10 years ago that I can sell for$500+. These I might have to do on ebay, but I’m going to try craigslist first.

While I don’t 100% agree with Dave Ramsey’s methods, the idea of the dedt snowball is fantastic! Get a bonus from work? Don’t even think about a nice fancy sushi dinner, just pay off debt. It’s so easy to feel entitled and celebratory when you get a little extra somehow, but that’s exactly the kind of attitude that got me into debt to begin with! So I never let it get that far, and I always pay my highest-interest debt first. It’s gotten to the point that when I do come into extra money, I am so completley excited to deposit it into my bank account that I can’t wait to do it. I get a little thrill doing that payment transfer online, too.

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