I very much doubt that “TGITS” will stick – but, at this point in my life, I love this time of the year. As I’ve written before, I claim zero on my W2 form and therefore I overpay on taxes each pay period. I understand the argument against this, however I strongly believe that this is the best approach for me. This year is a great example. I filled out and submitted my taxes as soon as I had all of the necessary documents and received my Federal and State taxes within a week after filing. Grand total…over $4,000 placed into my account via direct deposit.

As soon as it hit my account, I assigned each penny to debt. Resulting in two paid-off cards and a significant chunk of the next card in my interest-based snowball plan. In one month, thanks to taxes, I have paid-off a quarter of my credit card debt and increased my overall net worth by about $5,000.

Could I have done this over time by keeping more of what I earn each pay day? Sure. Would I have – probably not. The bulk payments allow me to remove myself from the equation. It’s much easier to be disciplined one day and assign payments than be disciplined 365 days a year and ensure that the extra few dollars in my check make it to a credit card. Also, I can’t begin to express how motivating it is to knock down the debt load so significantly in the span of a few days. I have about $14,000 left to go and freedom from debt seems more attainable now than ever.