We’ve been chasing down our final two “admittedly larger than the rest of the snowball was” debts since December of 2019.
We have $900 left on the loan for our 2018 Santa Fe.
We traded in two cars for the Santa Fe, wanting to be a one car family (I drive to live, I don’t live to drive).
We settled on a 2018 Hyundai Santa Fe Sport AWD, I can’t tell you why at the moment.
Let me tell you about the trajectory of the last 13 months.
You have to take it a day at a time.
You’ve got an upside-down car, we like the car (I wish it had more towing capacity and more legroom in the passenger seat though), and there’s not a ton of folks on Kijiji or Autotrader who are going to crack you a cheque for $20,000, $30,000 or $40,000 for a car regardless of whether or not you put “lady driven” in the ad. That’s just what a friend tells me, I wouldn’t know...
I digress.
You can’t get stuck in “oh I wish” or “we should have” - this whole thing is a “we should have”!
This is why the debt snowball works. Your goal with the debt snowball is simple - you’re gaining momentum and speed by organizing debts smallest to largest - regardless of interest rate.
You’re toughening yourselves up, building an appetite for financial goals by experiencing small wins at the low end of the snowball (paying off a credit card with a balance of $300, for example) so that you can have the doggedness to go after a “new car” auto loan.
You have some experience because you know what this
You’re staying allergic to debt while doing this too, as financial stupid lurks around every corner and you cannot borrow your way out of debt.
It’s a different feeling to be going over the monthly budget template and eliminating the car payment. It feels like freedom.
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