The Snowball System
Posted by John | Filed under Uncategorized
After watching your show, my husband and I decided to use your debt repayment plan (the snowball system) to get rid of about $40,000 in credit card debt and student loans between us. We each went to university for 5 years and had to use student loans to get through. We also accumulated credit card debt when supplementing our student loans, as we only had part-time jobs throughout university. About a year after school we got married, and that brought our debt to about the $40,000 mark. We decided to aggressively pay off our debt, especially after we both got pretty well paying full-time jobs. We used the snowball plan, where we paid off the highest interest debt first, while paying off the minimum on our other debt, so as not to affect our credit. We are happy to say that after a year and a half of working our tails off, this month we will be making our final payment on our debt (using a well earned bonus from my husband’s work and a great tax refund). By the time this month is through, we will actually have some significant savings. I used to get so anxious watching your show, thinking that we were in the exact same situation as those people and we have no real plan to attack our debt, and now that we are in control of our money and bills, my anxiety is gone, and I feel so much better about our financial situation. We are going to save for awhile and hopefully be able to buy our first home in the next year. We really appreciate all that you do in helping those of us that need the financial guidance. I will continue to watch your show, and learn many helpful financial tools along the way.
May 4, 2012 at 10:45 pm
Thanks for sharing your story…very encouraging!
June 8, 2012 at 9:02 pm
Thank you very much for sharing your story! I seem to have a new found hope that there is actually light at the end of the tunnel. Personally, I have an accumulated debt of approximately $70,000 with only $3,000 of it consumer debt, the rest, school loans…YIKES:) This is my first time on the site and it seems that it is VERY POSSIBLE to gain control of this massive debt however frightening it may be…Could you give any suggestions how you repaid the 40,000 in such a short time span?
Thank you