OK, let's give you an example of how this
Debt # 1 Visa card Balance 500.00 Payment
Debt # 2 Master card Balance 800.00
Debt # 3 Furniture Balance 1250.00
Debt # 4 Car Payment Balance
3800.00 Payment 250.00
Debt # 5 Car Payment
Balance 4200.00 Payment 250.00
Debt # 6 House
Payment Balance 95,000.00 Payment 900.00
debt is $105,550.00
If you pay this debt off in
the conventional way, of the minimum payment, you will
not be debt free for thirty years. (Assuming you have a
thirty year morgage).
So our snowman will have
six round balls. Ok let's talk about how to melt our
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We have all heard the saying, "Too much month
at the end of the money." If you do not pay any more
than the normal minimum payment on your debts, you will
never get out.
Be sure and read the page about
"Myths" so you can understand this principle.
1990, the U.S. Department of Health and Human Services
did a study (Published in June 1990, publication
#1311871) and concluded that 96% of Americans do not
reach financial independence by age 65. So if you want
to join that crowd, just keep doing it the way you have
been doing it.
So we have to find extra money to
help pay off our debts. Since we are using the
"snowman", let's call it your "rock salt" money to melt
away that snowman debt.
In order to find this
money, you need to put on your thinking cap and find out
where you can cut costs, without changing your lifestyle
If you can find $150.00 to
$200.00 extra per month, your debt can be paid off
rather quickly. That might sound like a lot of money to
you right now, since you are having trouble making ends
meet every month. But this page will help you with some
ideas on how to do that.
Principle of Rock Salt