I am trying to upload a graph from my Excel spread sheet, because I want to show you my debt snowball. In spite of all that I know – about personal finance and diet, I am still overweight and in debt. But on both fronts we are making progress, and I wanted to show you that. My solution – to take a picture of the computer screen and show you that way!
As you can see, I’ve graphed into the future, and right now I owe $50 and about $2 of interest. In two weeks, or if I get some unexpected money, a bit earlier, this debt will be in the history books.
It is tempting, today, to just pay it off – get it over with, move forward, and move on. And, if I go into some of my less urgent savings I could do just that. I could skip the walking shoes (and have wet feet for two weeks if it gets slushy) . I could be incredibly broke for the next two weeks and revel in the delight of a credit card shredded and made into earrings or something.
I’ve decided, however, to live the next two weeks. I will wait. Like my weight, I did not get into this position over night, and I won’t get out of it so quickly either.
“The plans of the diligent lead surely to advantage. But everyone who is hasty comes surely to poverty.” is what it says in Proverbs. I can wait for two weeks for the joy of cancelling this card!
For those of you familiar with Dave Ramsey’s Debt Snowball, this debt should probably have been the last to be paid. It had the lowest interest rate – and the lowest balance owed. So why did I focus on this one?
This particular debt has been with me for a long time. I got the card back in the heyday of “Balance Transfers”. The offers of transfering high interest debt to a low interest credit card. The nice thing about this card was that the interest rate stayed low (4.99%) until I finished paying it off. I’ve been paying on this card for a long, long time. Psychologically this has been very motivating for me.
I decided to “attack” this little debt at about the same time I was struggling with that “plateau” in January. As I steadily made the larger payments ($75 per pay check + extra money) I also broke through the plateau and started losing.
I suspect that this temptation to “get it done” will hit me at more points in my journey. But I choose to follow God’s advice and stick to the plan – it’s proved to be a good one so far!
I will try to make a weight-loss graph and post the two so you can see the correlation between the two. At least the correlation I think is there!
I’m off to have my breakfast and go to the gym. Have a wonderful weekend.