Why we stopped our debt snowball

debt snowballThe debt snowball is a powerful way to pay off your debts fast! It’s motivating to pay off your smallest debt and then roll that payment into paying off your next smallest debt. As debt after debt gets paid off, the debt snowball gets larger and picks up more speed to pay off your big debts.

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Over the last 30 months, we’ve been able to pay off over $40,000 of debts, including medical debts, credit cards, a car loan, and a student loan! We only have about $12,000 left until we are finally debt free! (applause)

But we’ve stopped our debt snowball. We’re no longer paying off our debts fast. And we stopped on purpose.

Why? Is it because we love our debt and want to keep it around and keep feeding it?

No. We stopped our debt snowball for two reasons:

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Disney Without the Debt Hangover

Nathaniel At DisneylandJust a couple weeks ago, we took our very first cashflowed vacation.

At Christmas, we got some cash from family members (Thanks, Grandma and Uncle John!), and we thought about how we could save that money and add to it for a spring break vacation at Disneyland.  We saved that money into our “travel” envelope, and added to it in January, February, and March. With gas money and food money from our other envelopes, it worked!  We had enough money to go on a vacation without it coming back to haunt us in the coming months.  We even had $22 left over after it was all said and done!

In the past, when we wanted to go on a vacation, we would put the whole thing on our credit cards.  We ended up buying vacations that we couldn’t afford.  They were lovely trips to Mexico at all-inclusive resorts, but with the 24.24% interest on our credit card, we ended up paying 2X as much for the vacation, by the time we actually paid it off.

Now that I know the freedom and discipline of saving up to pay for something really nice, I’ll never go back to the old prison of debt again!

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