Stopping The Snowball
QUESTION: Andy is down to $23,000 in debt to pay off. They make $6,200 a month and are having a baby in October. Should they cut down on the debt snowball and save up for the baby?
ANSWER: Children are not as expensive as everyone will have you think. As soon as the kids get out of diapers and onto regular food, you hardly know that they are there, expense-wise. Stop the debt snowball until baby comes and pile it up in a huge emergency fund. When baby and mommy are home and healthy, write a big check and pay it down on the debt.