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115R | A how-to conversation about strategies for tackling consumer debt, a review of Monday\u2019s episode with Bonnie Traux, and a few updates about the ChooseFI community. \xa0

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• Brad\u2019s wife no longer working as a CPA \u2013 although she was technically laid off, she\u2019s excited for the extra time in her schedule.
• Being at FI gave Laura the ability to be happy for her previous employer and move on with a smile.
• Bonnie Traux, from Monday\u2019s episode, is an ultimate side hustler.
• If you\u2019re stuck, you\u2019ll have to do something different if you want a different result.
• Bonnie reached financial independence in about 13 years.
• Before starting to save, Bonnie spent years paying down consumer debt as her husband was continuing to build it.
• The journey towards financial independence doesn\u2019t start at zero \u2013 it often starts with tackling debt.
• How to tackle debt
  • Use account-tracking software - examples: Mint.com, YNAB (You Need A Budget), or even Excel or a pen and paper.
  • Know what\u2019s coming in, and what\u2019s going out.
  • List out all the debts you have, their payments and interest rates.
  • Reasonable interest rates are somewhere near or below 6%.
  • The Debt Snowball \u2013 take all your debts and organize them from smallest balance to largest. Continue making minimum payments for all debts, and commit any extra to paying off the smallest debt. When it\u2019s paid off, roll that payment into paying off the next smallest.
  • • The Debt Snowball is a psychological win, but ignores interest rates.
  • The Avalanche \u2013 the interest rate is the most important thing. Always pay toward the balance with the highest interest rate.
  • The Hybrid Method \u2013 combine these two strategies to pay off a few smaller debts at first, then commit to paying toward the highest interest debt.
  • You could earn more \u2013 start a side hustle, work a little extra
  • A no-spend month
  • Optimize regular monthly expenses
  • A credit card balance transfer
  • Consolidating debt
• • Part 1: Know where to find your account information
  • Part 2: Acknowledging that you can\u2019t afford debt.
  • Part 3: Debt Payoff Strategy
  • Part 4: Creating the Margin

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For more information, visit the show notes at https://ChooseFI.com/115R\xa0