I've been attempting to pay off the debt for a few years now... what a crazy journey. I've sort of been following the debt snowball principle; I've been putting extra bits of money towards the smallest debt. But I have not ever really snowballed my debt. Seriously this debt payoff thing is such a roller coaster ride.
For anyone who is unaware of the debt snowball here is how it works:
Line the debts up smallest to largest.
I'm calling mine 1 through 7.
Pay the minimum payments on each debt except for the smallest.
You pay every extra penny towards the smallest.
After you've paid off the smallest debt you put that minimum payment and every extra penny towards the next in line.
Here's how my debt snowball for July looks. Keep in mind I cannot truly begin the snowball until I have $1000 in the emergency fund again. I have all our debts in this list except for the Mortgage.
1: $15 payment towards the smallest debt
7: $153 payment towards the largest debt
Once debt #1 is payed off the monthly minimum payment for debt #2 will not be $56, it will be $71. Once we've payed off debts #1 through #6, then the monthly minimum payment for #7 will not be $153, it will be $734. We're talking years here but you get the idea.
IF, big stinking "IF" my hours at work are sufficient and if I can stick to my tightly drawn up budget and if no crazy Murphy incidents occur I should have the $1000 emergency fund up and running by October, debt #1 payed off in November, and the snowball moving along in December. It'd be faster if I didn't have dentist and doctor bills to pay off this month and next. Anyhow...
In the meantime itty bitty baby snowball is patiently sitting atop the hill eagerly anticipating momentum and growth while hoping desperately not to melt into a puddle of failure.