Since learning about the Dave Ramsey Method in my twenties, I've believed in how the Dave Ramsey method works but when it came to paying off debt, I personally believed in the math instead of the psychology of paying off debt. Meaning, I believe in the Debt Avalanche Method to paying off debt, where you make a list of your highest interest debts first to the least and start paying off the highest interest debts first. I believe in the math of this method because the highest interest debts are the most expensive debts. When we pay off these debts first to least, it allows us to save time and money instead of wasting any more money paying interest rates. As a banker, I also believe in this (because I personally don't believe in paying interest on our money. Earning interest, yes. Paying interest, no.)
Make a pact with your best friend to pay off debt as soon as you possible. Sit down and plot out on a calendar all of your paycheques and allocate how much you can pay towards your debt, consistently, each paycheque. Make a goal to pay off as much as you can by the end of the month or year and take care to avoid overwhelm.
I know many people who paid off hundreds of thousands in debt. It is possible with determination, grit, creativity and a little planning. If you have tips on paying off debt, please share for readers below. Signed, Filipina Budget Girl.