I chose to focus exclusively on our smallest debt, my husband’s car, which was around $3,000. My goal was to do everything I could to slowly decrease that number. There were weeks when I would send in $20 here and $50 there (thank goodness for online bill pay). If I had extra money in my budget, it went towards that debt.
The amazing thing is that it worked. Being able to see the little decreases in that debt helped push me through the tough times. When I could see progress, it was easier to sacrifice and keep making small extra payments. Anytime I started thinking about the larger number, I’d lose focus and those feelings of helplessness would take over again, so I had to focus on the one at hand.
Once we had paid off Aaron’s car, we began working on my car, then my student loans, then Aaron’s credit card debt and finally his boat. We knocked out a lot of debt by just focusing on one at a time. Once we finished the boat, we had paid off around $41,000 in debt.