Thinking about paying off debt with the Debt Snowball Method? Check out this list of 10 things I wish I’d known before starting my debt snowball.
I carried around over $100,000 of debt for many years before I finally committed to the Debt Snowball Method.
I owe my glorious debt-free status to Dave Ramsey who introduced me to paying off debt with the Debt Snowball Method. I read his book, The Total Money Makeover (<– a must-read for anyone in debt; like seriously, just go buy his book right now), and was hooked. I couldn’t be more thankful for his words of wisdom when I was broke, scared, stressed, fearful of my financial future, and desperate to get rid of my debt.
Clearly I wasn’t in a good place with all that debt (who is?). There are some things that I wish I could tell my former broke-self to help get out of the debt funk. In fact, now that I paid off my debt and have that 20/20 hindsight vision, I created a list of 10 things I wish I had known before starting the Debt Snowball Method. I hope this list is helpful for those who are gearing up to start their debt snowball and say goodbye to their debt for good!
Let’s get started with everything I would tell my former-self before starting the debt snowball:
1. Start now. Like right now. Don’t keep thinking about it for the next year
Girl, you have listened to a thousand Dave Ramsey podcasts, read through hundreds of articles about the different methods of paying off debt, filled out tons of spreadsheets calculating debt payoff dates and interest paid. You’ve gone back and forth a hundred times about when to start. Enough already!! You’ve wasted years (literally years!) because of your indecisiveness. Today is the day. No more excuses. No more “research”…start the Debt Snowball Method today.
Side note: Starting your debt-free journey is the toughest part. I wish I had the resources to help jump-start my journey. But they didn’t exist. My solution? Create them! I’ve created three killer Debt Snowball printables…and I’m sharing them with you! Just enter your email in the box below, and I’ll send you three debt snowball printables over the course of three days to help you (finally!) start your Debt Snowball
2. Ignore your math brain. Ignore the doubts.
Stop being enticed by the Debt Avalanche Method. I know, using the Debt Avalanche Method where you pay your highest interest rate debt first makes mathematical sense. You pay less in interest and you get out of debt faster. Yup, that’s what the math tells you. But guess what? Money, debt, and personal finance is about more than just math. There are a lot of emotions attached to finances and you’ll learn this lesson a thousand times over in your debt-free journey.
On paper, the Debt Avalanche Method gets you out of debt faster, but in reality, the Debt Snowball Method will probably get you there faster. That’s because you get that sense of accomplishment when you pay off your first (smallest) debt. The high you get, those happy emotions, will give you the momentum you need to continue attacking your debt. You just don’t get that feeling with the Debt Avalanche Method.
Ignore the math. Stop being such an engineer about your debt. The Debt Snowball Method will give you motivation, confidence, and so much more that will help you pay off that debt that just won’t go away.
3. Those podcasts are very motivating. Don’t stop listening to them.
You’ve been listening to tons of personal finance podcasts to get psyched up for starting your debt-free journey. Well, it works – you pick a day and start the Debt Snowball. But that doesn’t mean you should stop listening! Keep listening to the podcasts to stay motivated on paying off debt, get tips for saving money, and hear stories about other people who paid of their debt.
4. You should open up to someone about your debt
You are the only one in your group of friends that has six figures of debt. It’s a pretty lonely feeling. Find someone who can relate to you. Trust me, over 44 million Americans have student loan debt – you can find one of them. It’s a good feeling to compare strategies, feelings, goals, and struggles with someone in a similar position.
5. You are going to go over budget…and that’s okay
You are going to spend days creating the perfect budget (<– even though it should only take 5 minutes). Despite that effort, you are going to go over budget. In fact, less than 48 hours after starting the Debt Snowball Method you are going to drop your phone and it’s going to shatter. It’s an expense that isn’t in your budget and you’re going to be really angry.
There are going to be things that destroy your budget. Suck it up. It happens. Don’t let it discourage you. And don’t “screw the budget” for the rest of the month. It’s just one tiny blip (or a couple of tiny blips) in your budget, and it’s okay.
6. Always keep a spending log
This is the only method that works for you. Writing down each and every expense in your spending log helps you to consistently stay under budget, spend less, and spend more mindfully. I know it takes more time that the automatic electronic ways of tracking your expenses, but this is the way that works for you.
Related: Spending Logs: A Complete Guide with a Free Printable
7. Just make a budget every month
This whole getting out of debt thing won’t work without a budget. You need one. Every month. There’s no way around it.
8. The sacrifice isn’t really that bad
You’re a little scared to start your debt snowball. That’s understandable – you’ve heard Dave Ramsey say over and over again about being on a ‘beans and rice’ diet, never going into a restaurant, and never going on a vacation. Those sacrifices seem like the end of the world to a 20-something. But you know what, (1) it’s not the end of the world and (2) YOU decide your budget. You can make really delicious food on a budget (there are tons of budget-friendly food blogs to help you). You can budget for restaurants. Oh, and you can go on some pretty great vacations that are also affordable.
You’ll have to sacrifice a little. But you won’t have to sacrifice everything. Plus, it’s only temporary.
Stop acting like your social life is over.
Related: 21 Debt Delusions Preventing you from Becoming Debt-Free
9. This is it! This is the KEY to getting out of debt!
You are making the right decision. Sticking with the Debt Snowball Method is going to help you pay off your debt!! YAY!
Related: The Debt Snowball Method: A Complete Guide with Free Printables
10. It is SO worth it
Being debt-free is even better than you imagined. You can do whatever you please with your money. You don’t have to hand over any of your paycheck to a credit card company, loan company, or bank. Your paycheck is all yours! That sacrifice, the work you put into earning more money and saving more money will be worth it. Do everything you can today to get out of debt. It’ll be worth it!
What do you wish you knew before starting your debt-freedom journey?
Trisha @MendingPockets says
Great advice!! I too wish there’d been more resources out there when I started, but these days there is so much encouragement and support online it’s a great time to start and knock out the debt!!
Liv says
I totally agree – I relied heavily on the online community when getting out of debt!
Dorrie says
I am working on this. Works great. I didn’t buy any special paperwork or download anything. I set up a notebook from the dollar store. I list ed all my expenses. Then my debts. I am so glad I did. GETTING OUT OF DEBT. YEAH
Liv says
That’s great! I’m glad you found something that will help you get out of debt 🙂
Brittany says
Listening to financial podcasts helps me a TON as well!
Tara says
What are your favorite ones?
Liv says
I’m going to chime in with my favorite podcasts 🙂
My favorite is the Dave Ramsey Show, but I also love Bad With Money and Money Girl’s Quick and Dirty Tips for a Richer Life.
I wrote a post on my top 6 favorite podcasts and why I love them: http://www.fundingcloudnine.com/personal-finance-podcasts/
Tammy says
thanks for your post! it helped me draw the line starting today!
Liv says
Tammy, I’m so happy to hear that 🙂 Good luck on your debt-free journey!
Loida says
Thank you for your down to earth advice it is a very scary journey starting today ?!!!
Liv says
You’re welcome! Getting out of debt can be scary, but it’s even scarier to remain in debt! Just know that you are not alone – there are many other people in your same situation. I’m so happy you are starting today – good luck!
Chevon says
Are the free printables still available?
Liv says
Yes they are! You’ll get the three printables over the course of three days. You just need to put your name/email address in the form so I know where to send the printables.
Dawn Johnston says
Thanks for the great advice! Going to get my budget lined out tomorrow!! 👍🏻
Liv says
Yay! That’s great 🙂
Vivian Smith says
As of January of 2017 I have heard Dave Ramsey Snowball Debt Plan and incorporated it to my life.
I have pd off several small outstanding bills and closed all my credit card accounts but my bank card and debit card.
I have had to borrow from a personal friend for car repair and pd that off in December.
Now this site is encouraging me not to give up. I have another repair for my household water supply. Not borrowing this time. Saving.
Anything is possible, as I asked God last year to show me the way!
Still going strong!
Liv says
Vivian, it’s great to hear that you are powering through despite some challenges along the way. You can do this! I’m glad to hear that this site is a source of encouragement for you 🙂
Lisa says
Thanks for the encouragement! I have about $13000 in CC debt, my husband is currently accruing more student loans after we paid all student loans off 3 years ago and I feel like just throwing in the towel but I’m remotivated to keep working hard and spending less. My goal is to have CC paid off by this tie next year. Not easy with a single income for a family of 5 but I’m determined to stop being poor because of bad decisions!
Liv says
Lisa, thanks for sharing 🙂 I’m so glad you are sticking with it… it will be worth it!
Lisa says
Close to being debt free, including our mortgage. It feels like everything just falls into place when you make the commitment to not be in debt to anyone. Something that has helped besides Ramsey is the Mint app that tracks all spending, budgets, goals, etc.
Liv says
That’s great! I also use (and love) the Mint app!
Twila Wenger says
I’m starting! I’ve been doing part of the snowball by paying off smaller balances instead of the highest interest rate, which wasn’t working for me. Love getting zero balance statements. But I haven’t setup a budget. Working on getting spending under control, but need to start tracking. Need the printable forms. Thanks!
Liv says
That’s fantastic! Now that you have a plan for your debt, you can start tracking your spending and making a budget (head over to some of my budgeting posts for some free worksheets). Thanks for sharing 🙂
Melissa says
Thanks, I’m starting NOW!
Liv says
YAY!! 🙂
Galen Hutchinson says
I’ve been seriously tying to stop fretting about this, took!! I want to get started right now!! I believe my 1st Printable has come through THANK YOU….!!
Liv says
You’re welcome! 🙂
Naomi Horton says
Have been trying, with success this method, and the envelope system . Unfortunately, my husband has an illness that makes him spend money constantly. I have followed advise from health professionals, personal tools ets, but always just as I get things under control, away we go again.
I would be lost without the pods, encouraging posts and tips. I look on these as the way to stay sane. Won’t ever be debt free, but at least I have a way of coping
Priase says
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