Getting out of debt!

Crystal and I have decided to get out of debt and to change things up in our life.  Between the credit cards, car, Disney Vacation Club, House and other minor things, we are just fed up with our money just disappearing.

A little over a week ago, we started in Dave Ramsey’s Financial Peace University.  We actually signed up about 3-4 weeks ago and are not ones to wait. 

The biggest thing we have done is the budget.  We had a budget before, but it was very loose, and upside down.  It only really listed the major things such as the house payment and car payment, along with the bills. 

What we have now is the Monthly Cash Flow plan that Dave Ramsey talks about doing.  Also called the Gazelle Budget.

Free Download: Monthly Cash Flow Plan
http://www.daveramsey.com/blog/free-download-budget-form

When we went through this, we found a lot of areas where our money was going that we could re-adjust to pay down debt.  As a result of that, we are going to be able to make over 3x the amount on the Car payment that is due to really start cutting it down.  This is after we paid off a few other items and snowballed them into the car, along with adding extra to it that we found from doing the zero based budget.

Currently we are on Baby Step 2 (Debt Snowball) of the Total Money Makeover plan, but up to be on Baby Step 3 (Emergency Fund) soon.

Some other things we’ve done to try and cut some debt down. For both our house and our car, we are paying twice a month to help shave down on interest.  We also listed stuff out that we know will be coming up between now and Christmas and have some sinking funds to set money aside for when we need it.  We also talked to a Tax Accountant and are going to be readjusting our withholdings as we think we are over paying.  It looks like we won’t need to pay any more federal tax this year which will help.

Our goal is to be completely debt free, with no credit card accounts and no mortgage.  As Dave puts it, we are going to live like no one else, so later we can live and give like no one else!

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