Last week, as I was preparing to make my first payment in Baby Step 2, I received this email:
You got hit with a finance charge! $78.35 APR 22.99%
I immediately panicked! Am I making the right choice by paying off my smallest balance first? Do I really have to pay off a 2% interest loan – before a 22.99% interest credit card?!
Sorry Dave but there is just NO WAY that I can rationalize that. I understand the reasoning behind small wins helping us to stay motivated but I feel so sick and tired of this debt game that I’m determined to reach financial freedom! and SOON! So, I’m going against the grain and altering my payoff plan… I’m going to eliminate my credit cards before my low interest rate loans. It’s the only way I can sleep at night.
I know some of you may not agree with me (Dave definitely wouldn’t) but I’m convinced I can pull this off! Thanks for following my journey and helping me to stay accountable 🙂
New Balance: $2,937.95
How about you – Do you follow The Baby Steps perfectly?