$41k in Debt: My Step-by-Step plan to pay it off 🍋
I am using the snowball method to pay down my DEBT 😵💫
So far I have been able to pay off a little over $10,000 in 3 months 🥳
My highest accounts are a $15k loan and $10k discover credit card, which is currently interest free (will end soon 😬) These 2 accounts alone make up 40% of my overall debt 😕
MY GOAL: pay off everything in 12 months by consistently monitoring and increasing my payment amounts.
These are the steps that have helped me pay things down:
1️⃣ ANALYZING AND PLANNING
✍️I use Google sheets to write out every credit card/loan balance, along with my weekly direct deposits.
📉I focus on smaller amounts to pay the statement balance in full, and then plug in numbers to make sure I am maximizing my payment amounts on my higher balances.
📆I am able to see +/- thanks to my weekly Friday deposits which makes it super easy to plan all my payments a month in advance (I schedule each payment at the beginning of the month for the due date (automize payments on a monthly basis)
2️⃣ MAKE MORE MONEY
💡Each week I am making efforts to have more $$$ to add to my debt payment plan.
💡Doing side hustles, selling unwanted items, making more commission at work 🤑
3️⃣USE MY NO BALANCE CARDS ONLY (responsibly)
⭐️ This used to seem counterintuitive when I first started because the goal isn't to keep stacking debt, but through proper budgeting, I am able to use 2-3 cards for my essentials - which I am paying in full each month 😊
⭐️This allows me to allocate some of the money I would have paid in cash for living expenses into paying my debt, giving me some cushion space until I have to pay these balances. 🤗
#lemon8partner #personalfinance #debtfreejourney #creditcards #financejourney #money #debtmanagement
Managing debt can feel overwhelming, but with a structured plan, it's achievable. The snowball method, where you pay off smaller debts first, can build momentum. Start by listing all your debts, categorizing them by amount, and focus on paying off the smallest first. As you eliminate each debt, redirect those payments toward your next largest debt. Using budgeting tools like Google Sheets can help track your income and expenses, enabling you to plan payments in advance. Setting reminders for payment due dates will also help you avoid late fees and keep your progress on track. Additionally, consider finding ways to boost your income through side gigs or selling items you no longer need. Consistency is key, so automating payments and sticking to your budget will provide the structure necessary for long-term success on your debt-free journey.
In the same boat! Trying to pick up a few extra bartending gigs while also trying to get overtime at my 9-5! I plan & hope to be out of CC debt by the end of 2025 so that I can buy a home or even move! Thank you for your transparency! We got this! 😩🤞🏽