Today, I had a $50 payment due on a debt to my city. The total outstanding balance was $65 and knowing that if I only were to pay $50 I'd still have one more payment to go before the balance was zero really bothered me.
I wanted that balance to be ZERO and I wanted it badly!
I hesitated before paying off the full amount though. That would mean $15 LESS to spend on necessities or to set aside for an emergency or unexpected expense. Using that $15 now might mean that our already tight budget could potentially get even tighter.
I'm not religious, but I decided to suck it up and put this in the hands of faith--faith that if I paid this debt off entirely and something unexpected came up, the money to take care of it WILL find a way to me.
So....
I PAID OFF A DEBT IN FULL TODAY!
The original balance was $215 with payments due every month of $50. I'd whittled it down, slowly but surely to $65. It may only have been $65 and thus not much at all considering my total debt is nearly $110,000, but it is PROGRESS!
Now that this little nagging debt is GONE, I will snowball the $50 per month payments into my next debt--money owed to a friend when she helped us in an emergency ($490).
If you don't know what a debt snowball is, it basically means as you pay off a debt, you take the amount you were paying on the eliminated debt monthly and ADD IT to your payments on another debt until that one is gone. Then, you take the combined monthly payments on those two eliminated debts and add it to your monthly payments on your next debt and so on until you are FINANCIALLY FREE!
~*~*~*~*~
DEBT TRACKING:
Original total: $110,000
Paid off today: $65
New total: $109,875*
*I am not tracking interest at the moment, but I know I should be.
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