Step 2. Payoff all debt using the snowball method. Dave Ramsey's baby step number 2 states that you pay off all consumer debt by putting as much money as you can towards the lowest total debt you owe. This step does not include paying off your mortgage. This method is said to keep you motivated as you get to payoff entire debts in full quicker which can provide a sense of accomplishment. While that method is a great method, our financial advisor suggests a different method. He suggests you payoff your highest interest rate debt first followed by your next highest interest rate debt. This method made more sense to me so we decided to use this method. When we looked at the amount of interest we were accruing on our credit cards it was sickening. Currently our credit card with the highest APR is our Lowe's credit card at 26.99%. 😳 It is also our lowest balance debt so paying it off first falls in line with both methods. Dave Ramsey also suggests you save little to no money during this timeframe. While I completely get the logic behind this rule, there is just no way we could not save a dime during our payoff period. As a family of five our lives can't stop while we get our debt paid off. This is why I sat down and determined how much we could safely put towards debt at this time. While we are not completely sacrificing everything, we are making way more intelligent financial decisions during this time and attemtpting to only spend what is budgeted and necessary. Once I figured out how much we were putting towards our debt, I determined how long it would take for us to reach payoff. By October 2020 we will be credit card debt free and will begin to focus on the next debts we hold, my student loans and my car payment. Step 2 is the largest step for most people and takes the longest to accomplish. I am eager to reach out goal in October and begin to build our new plan towards paying off our remaining consumer debts. At some point I will share with you the spreadsheet I use to visualize and track out credit debt payoff. #financialfreedom #daveramsey #creditcarddebtfree #financialjourney #everyonesisdifferent #budgets #stayingontrack #babystep2 https://www.instagram.com/p/B3b8Hn_gKAh/?igshid=3261k3vialw8