BS2 Pay off all debt using the Debt Snowball
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest.
We are on 2.0. I had a heart-to-heart about debt with DH and it took him a while to really get that I am serious about tackling our debt. He sees debt as cash-flow, so as long as we can make all of our payments, we are OK. I look at it as total amount owed, and consider the interest we will pay at the end. So yes, we are fine, month to month, but we don't really get ahead.
It's been really hard adjusting to not spending money on things. I did not realize how much I shopped. Sometimes online. Or I can go to Target and blow a few hundred and have no idea what I really bought. So this has involved a big shift for me. I'm trying to live the "reduce" part of the "reduce, reuse, recycle" mantra but did not realize what a consumer I am. I'm trying. I've really gotten into thrift shopping and had some fun with that. I get the experience of shopping, but it's more thrilling because it is a hunt. And I'm reducing my consumption and reusing, so it's a win-win.
We just bought a new house for about 1/2 the price of our current house. We are doing this to reduce our debt & payments. The neighborhood is not my ideal, but we plan to live there for 5 years, live cheaply, and then see where we are. The house is nice and the yard is amazing, so maybe we just never leave our house.
The house was a bargain because it's in bad shape, so we had to take out more debt to get some work done. We are doing some ourselves but with full time jobs and two young kids, not much time for that.
So we really can't start on the next step until we move into the new place and sell this place. So I am in debt limbo.