Tuesday, March 10, 2009
You didn't think I wouldn't share how I'm getting out of debt, did you? I'll explain the best way I can and hope it helps you too become debt-free! My brother, Josh takes a financial class every Tuesday so I only have week 1 of what to do. I guess that means that every Tuesday or Wednesday when he calls me to update me on what to do next then y'all will hear it too from me! So let's continue this giving trend and pass it on to others!
First things first:
-Put $1,000 in an EMERGENCY account and DO NOT USE IT!
-Go back 3 months (excluding Christmas gifts) and figure out how much you spend and what you spent that money on. (example: clothes, gas, food, etc.)
-tithe to your church or a christian charity
-keep 10% of your MONTHLY income for yourself
Now here's the most rewarding part. These numbers are based on my car and credit card payments. If you owe on your car you should pay off that debt first.
*Car payment: monthly $317 owe: $4250.99
If I continue to pay the minimum monthly payment of $317 if will take me 13 months to pay my car off. But if I add $200 extra a month and pay $517 it will take me 8 months!
Since I only have a phone bill, car, credit card payment and I live at home I'm able to do this!
*Credit Card: monthly $124 owe: $6185.16
Once I pay my car off if I add that $517 that I will already to used to paying every month and add it to my credit card bill and the minimum payment I will be debt free from the credit card in 10 months instead of 5 years!
Therefore I will be debt-free in 18 months! I'm super excited about this plan as long as I can stick to it! I'm hoping to settle down in the near future and the only thing want to be in debt with is a house. So we'll see if God brings my future husband into my life!:)
Stay tuned because class is TONIGHT and I'll be getting a phone call tomorrow for more ways to become debt-free!