I hope everyone on this get out of debt journey with me is doing well. I’m not doing as well as I would like but by the end of March I will have paid off roughly $6,000 in debt. I’ve managed to save an additional $2,000 that stays in my savings account. I do have other savings and investment accounts that I recommend you do as well. One way I have been keeping track of my payment history is by using an excel worksheet like the one below. I also have a calendar that list every payment that needs to be made until the end of the year. I find this extremely helpful. I have automatic payments set up for all my bills but now make every payment as soon as I get paid. This has just been what works for me. I encourage you to experiment and figure out what works for you.
The good news is that so far I have paid off one credit card. One thing I wish I would have done is followed Dave Ramsey’s advice and used the debt snowball method. The debt snowball method in a nutshell is when you list all your debt in order from smallest to largest and commit to paying it off in that order. As you pay off the smaller debt the money freed up then goes toward paying those larger debts. Typically with the debt snowball method you pay the minimum amount on all debt and put any extra money you have toward paying off the smallest debt. If I would have used that method I would be done paying off three credit cards instead of one.
The route I chose is someone like the debt snowball method. I committed to paying off the smallest debt first, but I also tried to get as much as my debt as possible below half the credit limit. I’m not sure if that was the smartest thing to do, but that’s what I did. I recommend doing some research and speaking with a financial advisor.