Last November, we paid off our last piece of debt and officially started living debt-free.
It was the most magical feeling after so many years of hard, hard work. Lots of readers had questions and wanted details so this week I’m going to share all the ugly bits and the miracle of living within our means. It took a long time for us to get here–like seven years–and I believe you can do what we did. We didn’t hire some fancy financial manager to handle things. We didn’t consolidate loans or declare bankruptcy. We sat down, looked at the hole we’d dug ourselves, and then made a plan to get out of the hole.
There is no quick fix. We had a couple setbacks. We got distracted a few times. But we also got rid of a lot of debt and are now living comfortably within our means (and making less than we have in a long time) and all glory goes to God who was faithful when we called out for help.
Your taxes are due Friday–are you ready? I feel like money is going to be on a lot of people’s minds this week so I thought it would be a great time to air our dirty laundry and maybe help you get started on the path to financial freedom.
Hahaha–okay, I’m sorry. BARF. I can’t say things like “path to financial freedom” without gagging a little and rolling my eyes really hard. That sounds so cheesy and lame. And sort of like an infomercial. I promise to not use anymore catchy language or gimmick-y phrases. It’s going to be hard, but I’m going to stay strong and fight the urge.
Long story short: we used to owe banks, credit cards, and student loan companies lots of money. Now we don’t. If that sounds like where you’d like to be, join me this week as I share the details, the things that worked for us, and where we’re at today.
Random bits before we get started: when I say we’re debt-free, I mean all debt except our mortgage. We actually have two houses so we have two mortgages (one is a rental property). The general consensus in the money world is mortgage debt is not a negative thing to have. Sure, we would love to not have mortgage payments due each month, but I’m not really talking about our home loans this week. Those are there, will be for some time, and we’re hoping to pay them off ahead of time, but I don’t really have much to share other than we have some mortgages.
Also, I am NOT a money expert. Sometimes I mess up our checking account because I do math wrong while using a calculator. I repeat: WHILE USING A CALCULATOR. So you can email me questions but I’m probably not going to know anything about what you’re talking about. And finally, last week I put about $150 on our Kohls’ charge because I love that place. So I guess we’re technically not living debt-free. But when that bill comes, I’ll pay it off in full and I’m prepared to do that (actually, I was prepared to do it before I made the purchase, just to be safe). So maybe this whole series is a lie.
I owe $147.58 to Kohls right now.
I am such a fraud.
Rest of the series:
Debt-free living series: our debt
Debt-free living series: our budget
Debt-free living series: sacrifices and tithing
Debt-free living series: where we go from here + resources
If you have the money to pay Kohls, why would you put it on a credit card?
Debbie! Do you not know the glory of a Kohls’ charge and the magical coupons associated with it?? haha–I save more money and get more discounts if I use my Kohls’ charge. And since I don’t have a rolling balance, I don’t pay interest or anything. So I use it to save more money and then just pay it off. I could technically walk right over to the service desk and pay it off immediately, but I don’t carry my checkbook with me and they don’t let you use a debit card to pay your bills. ๐
So, if you use your card you get better discounts on your purchase, then pay the balance when the bill arrives. Gotcha, smart!!! And i guess i didn’t know the glory of the Kohls card. LOL i haven’t ever used one.
Oh yes! The glory of the Kohls card. NEVER pay full price for ANY THING at Kohls! But pay it off as soon as the nill.comes, or walk over to customer service & pay it right then.
I use department store cards for the rewards also and pay at the same time. You don’t have to go to the service desk. They will do it at the register. I carry my checkbook for just that reason.
Exactly why I finally caved and got a Macy’s card, so that I could take advantage of all the coupons and special offer that regular, card shunning people are denied. I have been paying it off right away or in a month or two. It DOES actually save money, which is hard to believe.
Debbie–that’s good to know! Even easier than I thought!
I’m so excited for this! Literally just prayed with a friend that my husband and I could get on the same page about finances!!
Also, you’re hilarious
Haha-thanks, Emily. You CAN get on the same page about your finances, I promise. Let me know what you think after the series is done!
I am so looking forward to this Mary! I spent all my spare time last week looking at my budget spreadsheets for 16-18 on how I can pay off about $14,000 over the next two years and a half without it being too painful. I can’t wait to see what nuggets of insight you have.
And dang those store cards for making you use the card so that you can get the mega discount. I can’t wait to prime myself to checkout and walk right over to pay off my card.
๐
Good for you. That’s one of my goals, and does it ever seem impossible right now.
It always seems impossible–but I think it’s a Godly goal and he will make it a reality if you’re faithful, I promise.
I’m interested in this!! Husband has no student debt (booo! hiss!!! … No really, jealous Jill over here) but I have … uh, a lot. But I’ve cut down a LOT too before we got married last year on my own. AND we are about to take on a mortgage for the first time so I am interested in how that will affect my journey to student loan debt-lessness!! Ready to listen ๐
My husband didn’t have student loan debt either…mostly because he’s a college dropout. HA! Plus, I shouldn’t have had any undergrad, my parents paid for it all, but I took out loans to “live on.” SO DUMB.