Becoming Debt Free in 2009

October 20, 2008

Tackling The First Debt

Filed under: Debt — ambercouric @ 9:43 am

We are going to pay off the car first. I know this is opposite from what most people (including Dave Ramsey) would tell us to do.

Here are the reasons:

1) It is by far the largest monthly obligation. Once it is paid off it will decrease our total obligations each month by $450. And since we are actually sending $700-$800 per month our cash flow will greatly increase without this monthly bill.

2) I feel about car payments the way most feel about credit cards. Every month I write the check it makes me ill.

3) It is the highest interest debt. I think the interest is 5.5%.



  1. No matter what philosophy you choose to pay off your debts first, the point is to get started like you did, so that is commendable. Remember, the rollover method will be the fastest route to debt freedom. God Bless!

    Comment by BDO — October 20, 2008 @ 11:06 am

  2. I think it’s a great idea. Cars loans are such a pain! đŸ™‚

    Comment by Money Funk — October 21, 2008 @ 12:50 pm

  3. Thanks for stopping by — I think you have great ideas! You are right – it is easier to focus when you have them broken down. It isn’t as overwhelming.

    Good Luck!

    Comment by jpkittie — October 21, 2008 @ 2:02 pm

  4. I agree with BDO, pay off what you want as long as you going forward.

    Dave Ramsey is not God, he is just giving advice. Many people including myself got out of debt without his philosophy

    Comment by Moneymonk — October 22, 2008 @ 1:16 pm

  5. Thanks for finding my blog. I started with my car first too in order to buy my house. We’re trying to focus on the credit cards now because the student loans are like a large wall in our way. The way I see it is to pay off debt in a way you feel motivated to do it. Don’t worry about what the grand Dave Ramsey says, he would suggest you sell your car and drive a POS one anyway! Good luck getting rid of the car payment.

    Comment by Jim ~ — October 24, 2008 @ 11:20 am

  6. Thanks for the encouragement. I can’t wait to start watching all the numbers go down.

    I do plan to do the rollover method. Once the car is paid off I will move that total to the credit card.

    Comment by ambercouric — October 24, 2008 @ 2:48 pm

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