For the third time in our marriage, we are doing the debt snowball thing. AGAIN. If you haven’t read why I explain it here. On a side note, this time around it wasn’t because we spent money on a bunch of stuff we didn’t need. Life just kicked our hineys this last year. We had a lot of unexpected expenses. But if we had been following the lessons we’d learned early on, we probably would’ve had the money in savings to cover it.
So back to the debt snowball! This time we decided to take a slightly different approach. When we sat down and listed it out smallest to biggest we had debt spread out among six different accounts. Most of them we were paying interest on. We decided to simplify it as much as possible.
Consolidate Your Credit Card Accounts
I’m a Pinterest junkie (check out my “Money” board here) and I’m always seeing those pins for “The best 0% interest cards” etc. One day I clicked on it and American Express was one of the cards listed where you could transfer a balance for NO FEE (usually they charge 2 or 3%) and have 0% interest for 15 months. On most of them, you have to have good credit to qualify. But if credit’s no problem and you can knock your 14% or higher credit loan down to 0% with no fee that’s a no-brainer! We signed up for the card and transferred the max amount we could. That took care of three of our accounts we were being charged interest on.
No Interest Saves TONS of Money!
We also had a card open that didn’t have a balance on it. They kept sending us those checks you can write that will give you 0% interest for a certain amount of time. We decided to transfer our other two accounts to that card using the checks (we did have to pay a 3% fee on this one, but compared to the monthly interest we would pay it was worth it). The other debt was some money my parents had loaned us for some new appliances so this took our debt snowball down to three accounts instead of six AND they are all NO INTEREST.
So we’re still starting with the lowest and working our way down. But we’re not being charged interest AND we cut our monthly payments from 6 to 3. This is less stressful for me to keep up with. Both of the no interest cards will expire in 15 months so we’re working on a plan to have them paid off by then.
Cancel Those Cards!
Next, we canceled and cut up all of our remaining credit cards that didn’t carry a balance. We stashed our cards that we’re currently paying off so that we’re not tempted to use them.
Hope this is helpful! Feel free to comment below!