On debt feedom.

When we lived in Tennessee we used to listen to this guy on the radio Dave Ramsey. He was telling people to cut up their credit cards and pay cash for everything. He had this method he calls the "Debt Snowball" where you pay minimum payments on all your debts, and attack the smallest debt with any and all the money you can. Of course while your doing this, you are not borrowing money and incurring new debt. We did this - we had credit cards from Victoria's Secret, Eddie Bauer, Mastercard etc. and we cut them all up. We put the smallest on on the fridge until it was paid off, then the next one and so on, right down the line until all the cards were paid off. We then were left with one student loan that was around 10k. We fell off the wagon a couple of times (car loan and new student loan) but are back on track. Next Month, that $10,000 student loan, which has been in residence since 1995, will be paid off. When you start throwing 12 and 15 hundred dollar payments at your debts, you begin to overpower them, instead of being enslaved by them. We are looking at being debt free except our mortgage in the spring.

Coming soon:
The baby steps
the envelope system