A couple successfully eliminated $43,000 in debt in just seven months using the “snowball” method.
David Wanberg and Sarina Lau, who tied the knot in 2021, combined their debts, which included her student loans and his car loan.
The debt snowball method prioritizes the smallest debts first, making minimum payments on the others until the smaller debts are cleared.
With each debt paid off, they rolled over the payments to the next smallest, which helped build motivation as they saw progress.
The couple also utilized overtime payments, wedding gift money, and made significant lifestyle changes.
Mr. Wanberg, 41, based in California, estimates he cleared $43,000 in just seven months and now works as a financial coach to help others achieve similar results.
His personal debt struggle began back in 2016 when a long-term relationship and job ended simultaneously, leaving him with just $300 and $50,000 in debt.
Throughout their journey, the couple managed to pay off nearly $100,000 combined.
“When I was 31, I had to decide between moving back in with my parents or finding a cheaper living situation,” he recalled.
Eventually, he decided to rent a room he found on Craigslist for $500 a month, utilities included.
The snowball method appealed to him because he felt that paying off the smaller debts quickly offered a sense of accomplishment, unlike the “avalanche” method that focuses on high-interest debts.
Initially, he tackled Sarina’s debt independently, which took her about five years to clear her original $50,000 while also saving for their wedding.
David met Sarina, 43, a claims adjuster, in 2016 and they got engaged in 2019 before marrying in 2021. By that time, they were facing $43,000 in debt—$8,000 in student loans for her and $36,000 for his car. He had paid $18,000 for a Nissan Kicks, financing the remainder.
“We saved for our wedding first, and then looked at our finances to see how much we could pay off,” Sarina explained, mentioning they also managed their mortgage and utilities expenses.
“Whatever I had left over went toward my student loans, and from there, it just started to snowball,” she added.
Additionally, she noted that David paid off his car loan quicker than he thought possible by putting more than the minimum on each payment.
Typically, the car loan payment was $375 a month, but he consistently contributed more.
“By adding an extra $1,000 each month, I paid off my loan in just seven months when it usually takes years,” he shared.
The couple accelerated their debt repayment through budgeting and using wedding gift money.
“During that time, we really limited eating out and vacations other than our honeymoon, which we had already saved for,” Wanberg shared.
“I mostly traveled locally, but I was able to work a lot of overtime, which helped a lot in paying off debt,” he said.
They completely paid off Sarina’s $8,000 student loan in a month.
Mr. Wanberg eliminated his car loan within seven months thanks to his overtime work and the extra payments.
While earning $40,000 annually in a training role at Amazon, he now works as a training coordinator.
“We weren’t earning six figures at the time,” he mentioned regarding their finances during the repayment phase.
In addition to budgeting, he got creative with income, promoting side jobs like selling Blu-ray discs and working night shifts as a bouncer.
“Not the most glamorous job, but it pays well if you’re focused on paying down debt,” he said.
“You really have to make sacrifices, like cutting back on restaurants and trips,” he continued.
He advised against using credit cards, even for rewards. “I haven’t touched one in six years,” he emphasized.
Now a financial coach, Wanberg noted the importance of mindset, suggesting that behavior matters more than salary.
“Whether you earn $40,000 or $50,000, you can still manage it,” he pointed out.
Together, the couple estimates they’ve eliminated more than $100,000 in debt over five years.
Sarina expressed her happiness now that her financial burdens have eased. “It was tough at first, paying such a large sum on my student loans, but now that the mortgage is my only bill, life feels a lot simpler,” she said.
David stressed the importance of having support when struggling with debt. “It’s crucial to have someone in your corner who supports you. It opens up possibilities you might not think you can achieve on your own,” he concluded.
