Sunday, February 24, 2008

Plan Going Forward Part 1 - Snowballing!

Hopefully it's as much fun as snowboarding but I highly doubt it!

Once I made the decision to get out of credit card debt once and for all, I started surfing the net and found some interesting personal finance (PF) blogs which got me inspired.

One of the earliest ones I began reading was "I've Paid For This Twice Already..." - the name really struck a cord with me as I had just finished looking at the interest change on one of my credit card bills and had a similar 'ah haa' moment myself.

Anyway, paidtwice wrote about "Snowflaking" a method of debt reduction advocated by a fellow named Dave Ramsey. I had never heard of this before but it seemed perfectly reasonable to me and I have decided to use this method to whittle away our debts as well.

I have created a personal snowball calculator at "What's the Cost" another of paidtwice's recommendations. I have opted to pay out the smallest first. See my post about my current situation.

For any of you out there who haven't heard of this method before I strongly recommend you read the article written by paidtwice. She explains it much more succinctly than I could.


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