Research shows that the average American has $10,700 worth of personal credit card debt. If you’ve got debt, be it credit cards, car loans, or anything else, having a plan is the only way you will get out. As Dave Ramsey says “You can stumble into debt, but you can’t stumble out of it.” The first step in creating your plan is to know how much debt you have. We just found this awesome FREE debt calculator last night – you put in all of the debts you have, and it will help you figure out how to pay them off the quickest. You can do a debt snowball (pay off lowest balances first, debt avalanche (highest APR first), or you can customize it and pick what you want to pay off first. It even lets you add extra payments (snowflakes) along the way.
For us, seeing it all written down made it a lot more clear. We’ve been working out plan, but hadn’t sat down to re-evaluate for a while. It also helped our perspective – we will be out of debt a lot sooner than we thought, even with the medical bills from Mr Frugal’s recent surgery.
If you’re working your way out of debt, how are you tackling it? If you’re on the otherside and find yourself DEBT FREE!!!! please share a tip or two about the journey, maybe something you gave up or took on to see your goals come to life?