In my last post I wrote that I will pay extra on my student loan. Using the snowball method I will be debt free within 2 years.
I wrote down all my debts. I only have one loan and that is my student loan. But I do have installments to pay taxes back, tickets for my vacation in November and for a NLP Master Practitioner course. So I also put these down as debt. In the next paragraph I wrote the steps as written on the website of Dave Ramsey.
Snowball method
Step 1: List your debts from smallest to largest regardless of interest rate.
Step 2: Make minimum payments on all your debts except the smallest.
Step 3: Pay as much as possible on your smallest debt.
Step 4: Repeat until each debt is paid in full.
Step 1
- Taxes 2018 € 180,-
- Taxes 2019 € 190,-
- NLP € 225,-
- Airline plane tickets € 1.346,10
- Student loan € 9.776,39
Step 2
- –
- I haven’t received an official letter so I can pay
- Paid in full. This was the last minimum payment.
- Paid the first minimum payment.
- Paid the minimum payment.
Step 3
I paid the smallest debt in full.
Step 4
I still need to receive an official letter for my taxes in 2019. If I receive it this month I can pay it in full next month.
How will you get debt free?
A fascinating discussion is worth comment.
There’s no doubt that that you need to publish more about this
topic, it may not be a taboo subject but generally people
don’t speak about these topics. To the next! Many thanks!!