25 years vs 1 year

We’re still working on our taxes. So no update yet on how exactly this will impact our debt snowball progress. Our personal taxes come together smoothly, but the farm’s taxes take longer because there’s a lot more to figure out.

However, optimism is our friend, so, we’re hoping that our tax refund, along with our increased debt payments, will wipe out our Home Depot card (the first card we’re attacking with Dave Ramsey’s debt snowball method). We’re also keeping our fingers crossed that the refund will bury another credit card, and possibly a portion of our student loans. Make no mistake, these debts will be rolled into the snowball eventually, it will just take a few more months without help from the refund.

When these three debts are eliminated, our focus will shift with a fiery vengeance to our last and largest personal credit card. This one has loomed over us for nearly a decade, and carries about an $11,000 balance.

To begin, let’s look at the grimmest possibility. If we paid only the minimum balance required every month on that card, it would take us 25 years to pay it off! A quarter of a century! We’d end up paying almost $30,000 extra dollars to the credit card company! And the minimum balance is nothing to sneeze at. It’s around $300 a month.

Now, let’s look at our current track. By keeping the budget lockdown in place, and eventually slamming every penny toward this credit card, we’ll have it completely paid off in about a year. One year compared to 25 years.


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