Written by monthly contributing writer, Kat at Inspired to Action.
When my husband and I finished college, we decided to pay off our college loans as fast as humanly possible. We did not want to start our married life off mired in debt, so we embarked on a one year adventure that involved somewhat ridiculous and embarrassing sacrifices.
Here are a few things we did to make our goal a reality.
1. Make It An Adventure
We decided to do everything we could to pay off our loans in just one year. Knowing we only had 365 days to reach our goal made all the sacrifices easier….and almost fun. It was a challenge. An adventure.
One of the more ridiculous things we did was choosing NOT to fix the air conditioning in our car. That might not seem too extreme, but may I mention we lived in Houston? And I commuted an hour and a half each day for work? In heavy traffic. All. Summer. Long. Between the intense heat, massive humidity and heavy smog, I’m surprised I never passed out while driving.
But I knew it was only for one year, so I endured. And now? It’s SUCH a fun part of our story to tell, because it was an adventure. Remember, adventures are rarely comfortable or easy in the moment.
So, pick a time frame (3, 6, 12 months), and set a goal (dollar amount or percentage) and start your adventure.
2. Focus On Purpose Over Prestige
We lived in one of the wealthiest communities in the Houston area because that’s where my husband’s job was located. But we lived like we were scraping the bottom of the socioeconomic barrel.
Our old, used cars made noise as they puttered alongside the Jaguars and BMW’s. Our friends lived in brand new, big homes and we lived in a roach infested apartment on the edge of town.
Yes, it was humbling, but we didn’t mind that we were less than impressive, because we had a goal. So we had dinner parties on our hand-me-down table, Super Bowl parties with our 13 inch tv and we knew our friends loved us for who we were rather than for what we had.
Making financial changes can be hard, but if you keep your focus on the goal, it makes the sacrifices seem smaller.
3. If Your Income Increases, Don’t Adjust Your Budget
This is a huge reason we were able to pay off our debts so quickly. After college, my husband worked full time and I worked part time, but we didn’t change our poor college student way of living.
As our income increased, we funneled everything toward our debt. It was SO much easier to make sacrifices and live meagerly because we didn’t know anything more.
Even if you are farther along in your marriage and family life, you can still utilize this principle by committing not to raise your standard of living if your income increases…until you’ve reached your goal.
4. Redefine What A Need Is
Some people might say air conditioning in Houston in August in bumper to bumper traffic is a need. Some people might consider cable a need. Internet? Magazine subscriptions?
One way to test if something is a “need” is to give it up for one month. Knowing that it’s just a 30 day trial will make it easier to try to live without it.
List all the things you spend money on regularly. Discuss each one with your spouse. Is it truly a need? Can you reduce the cost in anyway? Can you put it on a 30 day trial?
You might be surprised to find that many “needs” aren’t needs after all.
The Hidden Benefit of Going On A Debt-Free Adventure
If you and your spouse choose to start the journey towards becoming debt free, remember that nothing unites people like a common goal.
Because of what my husband and I went through to pay off our loans, money is something we honestly never argue about. Our commitment to stay out of debt and live within our means, has removed the friction that financial strain brings to so many marriages.
Are you ready for an adventure? What are some ways you’ve paid off debt or reduced your budget?
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I have been following this blog about a chap who retired at 30, sounds like you would have osme chance of! Good luck>
http://www.mrmoneymustache.com/2012/06/01/raising-a-family-on-under-2000-per-year/
Indeed many ways to pay off debt quickly. Either by traditional or modern way. The important we take action so that the amount of debt does not continue to grow because of high interest and after that how do we limit the debt. It is more important. We do not fall into debt again as before. We need to spend suit to the ability or shop with cash. Credit cards are used at certain times in which we may not be purchased with cash. The amount of spend by credit card also needs to be limited. Even more importantly, how we can increase our revenue, not our spending.
What an inspiring article
I have definelity enjoyed reading other money saving tips and feel like I should submit a few of the ones we use in our household. For starters I am a married mother of two growing girls; we have a dog and two cats as well. Both my husband and I work full time and have had college educations.
Here is our money saving tips:
Only eat out once a month- on financially good months that mean we go to a sit down restaurant on our more frugal months we will get pizza or a hamburger.
Shop second hand- we shop at second hand stores. Growing up I was used to buying new so it took me a while to shop at secondhand stores but now I find them as little treasure stores. We do have an exception to this rule though; birthdays. I will explain more on this down farther.
Purchasing furniture- when we purchase furniture we look in the news paper for furniture people are selling or we look in our local furniture stores but in the “scratch and dent” department. We have found nice stuff for a fraction of the price.
Groceries- when we go grocery shopping; which is twice a month, I plan a crock pot meal for that day’s dinner that way we can eat dinner before going to the store. It really helps with sticking to the list. When making our two week menu I plan 4 easy recipes which help on days we might be too busy to cook a decent meal. This helps with not eating fast food; i.e. Wendy’s, McDonalds ECT…
Holidays- we decided with our first child that we were not going to put any holiday gift on a credit card and save as much money for Christmas as we can. Some ways we do that is: pay for everything in cash, save the coins. Recycle: we have a few friends and family members that drink soda; we’ve asked them to save the cans for us. They happily oblige. These two techniques have bought our families Christmas presents for the past 9 years. Another way we do holidays is very simple: Birthday we get one new outfit. Christmas, children get toys and my husband and I get the electronics we’ve wanted all year. Easter everyone gets one new dress or in my husband’s case new dress pants and shirt.
Vacations- when we go on vacations twice a year and plan on staying with family and friends; it has worked out for the best so far. We like to visit with them and usually end up staying up till the wee hours of the night so by us staying with them its ok we stay up that late. We also plan on making our meals at their house which they LOVE. We get to try their favorite recipes while they get to try ours. (We buy the food for our recipes).
Hope my tips can help others
What an inspiring post! I have recently been focusing on finding ways to live more frugally with my family of 5. The actual numbers aren’t important- everyone of the nay-sayers need to stop focusing on them! This story occured 12 years ago, before the recession, and it does make a huge difference on where you live as to your cost of living. The purpose of this story is about making sacrifices, thinking outside the box, and setting a goal for yourself and your family with God’s direction and blessings. The numbers will be different for everyone! I would like to add a few things to the list that I haven’t seen mentioned so far
1.- When looking at potential homes to buy take advantage of the foreclosure market. I bought a 2,500 sqft. home with huge yard in a quiet, established neighborhood for about $30,000 less than the appraisal price. The sacrifice? It needs some cosmetic work. I do recommend a very thorough inspection before going under contract however, as foreclosures are almost always “As Is”. 2.- Make your own cleaning supplies. I figured if I started making my own laundry soap, fabric softener, hand soap, body wash, dishwasher detergent, and all purpose cleaners I would save my family well over $500 in a year. 3.- Garden! Even if you can only do containers. Using the fruits/veggies/herbs that you grow yourself can save a lot of money on groceries and is so good for you! 4.- Cut utility bills. Shut vents and doors to rooms that aren’t in use to avoid heating or cooling them. Install “low-flow” shower heads and toilet kits. Wash laundry and dishes in cooler or cold water. Install energy saving lightbulbs. Unplug things from the wall when not in use- TVs, computers, phone chargers, etc. 5.- “Group date” We came up with a plan with our group of closest friends. One night a week everyone comes to our house with their kids (since ours is the largest, and the yard is fenced in). We either all eat beforehand, do a potluck, or all pitch in for some carryout pizza. Several needs are met with this night. No one pays for a babysitter, and the kids get to play together. They usually are so engrossed in their fun that we adults actually see/hear very little of them. The ages range from 1-8 yrs, with a few 3 month old babies, 2 more due in May, and 2 more due in the fall. ‘New’ moms get a break while us ‘old’ moms get to enjoy a tiny one for a bit. We set up in the living room/den area all together with the pool/card table, TV, and couches. We all get “girl” time, “guy” time, “couple” time, and “group” time. We don’t do this EVERY week of course. We have anywhere from 3-8 couples on a night! Wow, I could really keep adding on. Maybe that means I need a blog of my own? 
WOW! so inspiring, i truly cannot thank you ladies enough for your faithfulness to GOD in posting so many encouraging stories about the faithfulness of God in your lives. i share a lot of your hearts and am standing with you while we all try to live debt free. this IS an attainable goal, it just takes LOTS of work, faith, and sacrifice on our part. God does promise time and time again to give us what we need.
this being said, ive compiled a list of “to do’s” for my family to pray over and make cuts on so we can pay off serious student loan debt. weve been attempting the debt free thing for about a year and a half.. this being said, we have not been as agressive as we need to be. we know all the things to do, weve gone through dave ramsey’s FPU… now it just takes work on our part.
again thank you for your posts, and the origonal post as well. yall are the spark that has started this flame. pray for us, as i am for yall!
i know im clearly “late” on reading and posting on this….but im right on time too
thank you so much again!!
Awesome! We have a goal of paying off about $25000 in one year as well. We are about 2 months in. We have two young children and live off of one blue-collar income (ie-not much coming in!) this is very encouraging!
This is very inspiring. My husband and I are in the process of paying off $30,000 worth of debt in one year. We are about half way there. We cut back a lot of wants and stick with what we need. Every non essential bill has been trimmed way back. We bring lunch every single day and eating out has become non existence.
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Hello everyone,
I read most of the comments above. I could completely understand the frustration and jealousy in some comments. I can understand how it feels to owe a lot of money. I am in the same boat. Although, I have been learning to lean on the Lord for His guidance. Jesus alone can change our perspectives on things…including money. Reading the comments above, I had to remind myself to remember that God has special plans for me and my husband. He has plans for us that are different than yours. God also has special plans for you. And the plans for you are different than ours. He has beautiful blessings for ALL of us. He wants us to trust Him solely for everything. It all goes back to this…lean on the Lord and allow Him guide us. (KJV –Isaiah 55:8 – For my thoughts [are] not your thoughts, neither [are] your ways my ways, saith the LORD.)
Blessings
Our family’s goal this year was to max out my husband’s 401(k) contributions which is $16,500 this year. That $1,375 per month. Not as impressive as $25,000 a year, but a challenge nonetheless for us cutting $1,375 a month as that leaves us with $2,400 per month for bills for a family of 5. Here’s how we our doing it – nothing drastic, just realistic:
* no vacations ~ just visiting local family and camping
* no memberships, no magazines, no clubs, no organizations
* refi’d home to 4% loan
* basic cable and basic phone service
* still driving older cars (no pymts)
* no clothing except necessary items such as jeans, hubby’s work boots, undergarments, t-shirts, a couple dress outfits
* “dates” are done at home (steaks, wine, etc.) after children are in bed
* not going to stores unless necessary therefore avoiding impluse buys (snacks, toys, household gadgets, clothes, cutesy items)
* my husbands takes his lunch 4 out of 5 days per week (allows one day splurge)
* no espresso stops
* buy in bulk and cook from scratch (huge money saver – huge!!). no processed foods like sodas, candy, chips
* any dining out is at casual restaurants – we only get water and skip appetizers and desserts
Since we discovered we really can live without the frilly extras, we will continue next year by doing minimum 401(k) contributions and then put all the extra money towards a new car.
Honestly, if you were to spend a week in our home, you would think we are very, very poor. But it is our choice to live BELOW our means and a few years of cutting back will allow us to meet our goals for the next 3 years of 1) establish retirement account, 2) pay cash for newer car, 3) establish a 6-month emergency fund.
Life happens. I have lived poor and poorer. I have lived with my needs met with a little more to enjoy. We have done our best through it all. Here is my story: Married. College. Poor : ) Kids. First job. Move. 2nd baby. Second Job. Loose 2nd job.Poor : ( Live with family. School of ministry. 3rd job. Blessing. Baby #3. Finances. Prosperity. Sell house. Fired. Return to School. Blessing of using Gifting. Unemployment for 5 years. Inheritance help. Unemployment. Food card. Debt. Soon GOAL ACCOMPLISHED BY GOD. Sometimes the goal is debt free. Sometimes it is going in debt to be able to provide for family and pay off debt…plus the hope of a savings. In all of these life adventures GOD HAS BEEN WITH US and loves us as much when we were employed as much as when we were unemployed. We tried to do what God would be proud of every step of the way. Prayer, patience, and Hope. 13 years of marriage adventure and still going. I loved the blog by the way but also felt it didn’t speak for a couple who had been married for longer than a year with kids and all that life brings.
I normally don’t read many comments but I am glad I read most of these. It was surprisingly encouraging to me. My husband and I entered into marriage basically debt free. We had one smallish car payment and it was about half way paid off. After some medical issues we had quite a chunk of medical bills. We got a credit card to help during rough times because we struggled to afford gas to get to work (bad idea, but we were really limited on options at the time) It got away from us as is often the story. It took a few years and a lot of hard work but we paid off all of the medical bills, the credit cards, that car and we have paid cash for pretty much every other major purchase we have made for our family. We did purchase another family car and we only less than a year before it is paid off. We still have some student loans and my husband is likely going back to school to get his Paramedics stuff done. It’s difficult but his initial degree is for a career that has been on a hiring freeze for the last 2 years. It’s hard to add debt when we’ve worked hard to pay it off in the first place, but as someone said above sometimes it’s an investment to get to a better place. Currently we’re living with my parents (have been since Dec) and my husband got laid off in March, Has been unable to find a job. With two kids and minimal bills I’d love to say we were able to save more and pay off more towards other things (the car, school) But sometimes even when you live as frugal as possible it doesn’t cut it. It’s frustrating but I see every month that God is in control. I think I will be really, really thankful every day when we have our own space again. Far too many people think “stuff” is freedom and happiness. But when it all falls apart or you radically downsize to save your family you can clearly see what really matters. I am thankful for my Jesus, My husband and my two beautiful children. We’re in this boat together and I wouldn’t have it any other way!
Well, my husband and I currently have around 90k in school loan debt. Thankfully my family paid for my schooling or it would have been more. Just to keep from going further into debt we pay over $400/month on interest. But my husband makes less than 26k/year. Here’s what we do to be able to pay that minimum payment:
-We live with three children in a one-bedroom basement apartment. It’s full of spiders and centipedes and weird disgusting creatures I don’t even know the names of, but it’s half the price of other places in town.
-We don’t eat out, and our rare date is usually on the fast-food value menu.
-I cook everything from scratch, and modify recipes to cut out non-essential ingredients that run more expensive.
-My husband got an elk tag so we don’t have to purchase red meat for a good year.
-We cram three carseats in the back of a very small Subaru wagon, and will not be purchasing another car until we absolutely have to when the next child decides to be conceived and born. The A/C doesn’t work and the transmission is about to go again, but it still runs.
-We don’t take any long trips, even though we live in a very small town with not much in the way of stores. I walk places we need to go as often as possible.
And here’s how we are attempting to make more so that we are actually financially able to pay down those loans.
-We’ve sold or are in the process of selling everything we don’t need. I even went through my jewelry (I still had everything from high school on) and sold almost all of it at a garage sale. They went like mad and I made a good bundle just from that.
-My husband started working on website design, development, niche site creation, and everything related. He taught himself because we couldn’t afford classes. Since starting in January, he has created three websites for other people and five niche sites for himself. One is already ranked first in Google, and the second is nearly there. This is on top of his full-time job. He’s done crazy things to make more time for his second job. The craziest was when he did a sleep schedule that allowed him 20 minutes of sleep every four hours. He literally slept a total of 2 hours in 24. He got a lot done that way.
-On top of his second job, my husband does odd jobs for the church on the weekends.
So, that’s how we try to survive and pay down those loans. It’s been a crazy ride with the recession and being unable to find jobs several times over the last couple years, but God always provides. Always always always. Not necessarily everything we want, but everything we need.
Kat, Thanks for sharing your story, it was encouraging. It is a great challenge to stay or get out of debt in our American culture.
My husband and I went hog wild on credit cards when we were first married. We got to a point where we were over our heads in debt. By God’s grace, we paid each one off in time. We now have no credit card debt but now we do have school loans.
Sacrifices we have made or are making to pay off debt: No cable/satellite, Renting, got rid of our smart phones, eating in, walking to the store, line dry clothes, “good enough” cars, running errands in one day, no internet for a time, no extracurricular activities for the kids, haircuts at home, side jobs, etc.
I have to remind myself that m y kids are learning from my example.
It is hard. It’s not always fun, but God sustains us. I am learning to depend in God and that’s a great thing!
We are also a single income family of 5 living very frugally by necessity and desire.
I wanted to add that we refinanced our 15 year mortgage to a 10 year at 4%, saving almost $200/month. We also reduced our homeowner’s insurance by $300/year by increasing our deductible discovering that statistically a homeowners insurance claim is only made an average of every 15 years!! Summertime line drying clothes saves about $30/month. Switching to a bank offering free checking and savings accounts (5 accounts total for our family) saved us $3/month per account in “statement printing fees”. That’s a whopping $180 per year! Often “finding” money to tuck away lays in the culmination of menutia. IE: bit-by-bit. Obviously, we can use that for debt reduction or to build savings.
Last year my husband was unemployed for 10 months. We really needed to have a larger emergency fund. It was only the grace of God and His inspiration of family able to help, that did not lose our home! Lesson learned = debt reduction is great, but if at all possible FIRSTwork toward protecting yourself (and your good credit) by saving whatever you can until you have 6-12 months mortgage payments in the bank. It may take a looong time but stick to it. Then, reduce debts to your heart’s content.
I hope this inspires you to look into restructuring monthly bills, re-read those insurance policies, make calls and compare competitors priceing. Investing a couple of hours on the phone or website searching may pay more than you think over the long term.
I’m a stay-at-home mom and we make an average salary and many wonder how we ‘survive’. Here’s a few things that haven’t been mentioned. 1) Never let money decide how many children to have or when to have them. God has promised that He will provide, and we need to trust that 2) Tithe off the top. You will be blessed, no matter how the amount you are able to give. We also drive 20 year old vehicles with low miles, have no cell phone plans (we have 1 pay-as-you-go phone for emergencies), no cable/TV, basic car insurance, very high deductible health insurance so the premiums are super low (and none for the kids, we pay cash for any visits and do lots of home remedies), go to town a max of once a week (that saves the most), stick to our written budget, travel in off seasons (all family is out of state), live in a 20 year old manufactured home which we pay biweekly (as opposed to monthly) so our mortgage will be paid off much sooner as you save 2 weeks interest every month, and also get in 3 more principal payments each year that you otherwise wouldn’t get. We breastfeed our kids, don’t buy jarred baby food, cloth diaper, buy all clothing at garage sales in the summer for the next year (except socks and underwear) and hubby’s work clothes. We swap kids with friends for date nights, go to the park alot, and as the old Charley Pride song goes, “we hold hands and smile, at what money can’t buy”.
This builds my faith so much!!!! I am a stay at home mom with a 6th month old and my husband and I are just now learning about doing without! My husband is a teacher, so between the two of us (or should I say one of him), we make only about $40,000 a year, maybe less. We have had to keep an eye on our money our whole marriage, but for the first time this month, we have really had to say, “Ok Lord, if you don’t show up, our bills won’t be paid!”
We are really learning to trust God!! We have really had to scrounge (i.e. we now use cloth wipe instead of toliet paper…which is fun because I feel super oraganic, and we have almost eaten everything in our house), Now, this sounds pretty intense, but let me reassure you, our bellies are still full, and we really are enjoying finding new ways to save!!
The two verses that have really penetrated my heart through all of this are:
Proverbs 15:17
Better is a dinner of herbs where love is than a fattened ox and hatred with it.
Proverbs 11:24
One gives freely, yet grows all the richer; another withholds what he should give, and only suffers want.
Thanks for your comment!
Kat, thanks for sharing your story. We are on our own journey of paying off debt. Finally are down to just student loans ($57,000!!!) that we incurred before we ever heard of Dave Ramsey and $2000 from my daughter’s birth. We’re so ready to be done with debt, but on a nonprofit job and minister’s salary, it’s slow going. Some people think we’re weird for cheap date nights, 11 yr old paid-for cars, and $10/month “blow” money, but we have a goal of financial freedom so if/when God calls us to do something radical like pick up and move, we can. Love your heart, thanks for sharing!
Wow good work, this post give me hope, thank you
Great encouragement. Regardless of specific situations, it is a great goal to reach!
We are 3 years away from paying off our home, and continually remind ourselves that raising our child debt free is something most can’t do in this day and time. Every time we think we need a bigger home, we remind ourselves that we are blessed and bigger doesn’t equate happiness.
Congrats on almost owning your home! That must be awesome. It great to realize bigger isn’t better. I have a friend who has a gorgeous home – twice the size of mine, BUT she has THREE times the debt for it. They are “house-poor” for lack of a better term. They struggle to make their mortgage and give up so much in life just to have a huge home. I’d rather live without all that debt hanging over my head. I may not have a huge house, but I don’t worry about whether we can make our pymts. In fact, sometimes we are able to even pay an extra $50 or $100 towards the mortgage each month.
I see a lot of interesting points in the post and many interesting responses in the replies…I do think that it is important to live below ones means in order to give more freely. I do see how the post could be beneficial to ones that are young and just starting out. At times I am frustrated and think that a lot of the “living debt free” and paying everything off in a year type posts are not possible for most people…especially if you add in a few kids and a house. My husband and I have been married 6 years, have substantial student loans about 50K, (but no credit card debt and our car will be paid off early next year), two children under 4, and I am a stay at home mom. I see how our loans have benefited us–my husband’s large chunk of loans are from grad school, which he needed–he is a mental health therapist. We look at our situation and know that we will slowly be able to pay it off…will it be in a year… no…we are hoping for 5-7…but we know that all we can do is be good stewards of what God has given us…our focus is not to be debt free necessarily it is to be able to give more freely to others
Thank you so much for your article, I found it very inspiring! I am a single Mum with one child and one that is due today, we are on a very limited income and obviously I can’t pay off massive amounts but I don’t feel that was the point of your article. The point is that we should do what we can with what we have. Even if you are only paying off ten dollars a week it’s still something and in the grand scheme of things it does make a difference!
I love stories like this and find them inspiring. We had our first child while still in university and left school with $50,000 in student loans (mostly mine). We made the choice for me to stay home with our son while my husband worked. His starting salary was super low and we live in a place where people make a lot of $ in the oil/gas industry. We didn’t get rid of our debt in one year – it took seven. During that time, however, we lived extremely frugally and took no consumer debt or car loans (we still don’t). We were able to purchase a tiny older home that cost less in mortgage than renting did. At times people questioned why we didn’t move into a nicer home which flabbergasted me. Finally, four and a half years into our little home our third baby arrived. We’d payed down most of our student loans and then were able to sell our house at a great profit and moved into a larger (but still modest) home. We used any extra profit to finish paying off our student loans. We live in a neighboorhood where most families have multiple vehicles and toys. We have one vehicle (pd for) and still live frugally in order to live within our means. We love second hand but also don’t live like paupers… it is all relative, anyways (my husband’s family still lives in Africa and to them we live like princes). We have been making extra pmts on our current mortgage to get rid of it – so we continue to make sacrifices that honestly set us apart from current culture. And yet, we are so blessed. Of course direct comparisons don’t work… we each need to take an honest look at where we are at and start taking baby steps toward our goals. Oh, one other thing, while I was homeschooling for the first two years, I also ran a p/t dayhome to help make my student loans. That was hard but allowed me to be at home with my kids.
Not all debt is bad debt.
A family with a modest mortage of let’s say $1200 per month is better off than the family paying $800 for an apt. Sure it is debt, but it is going towards a home; an apt is not – it is throwing money away.
If you are commuting to a good job far away, you need a reliable, safe car. I’m not saying go out and buy a loaded 2011 Volvo, but your 1975 Ford which constantly needs repairs, isn’t a smart option for your wallet. If you need to take out a $10,000 loan for a car – go far it! The point here is that you have the brains to buy a $10,000 used car and not a $30,000 new car.
Student loans are also not bad debts as you are investing in your college education and almost everyone with a degree earns more than without one. You should not avoid going to college just because you will go into debt doing so. Once you land that career, than pay off the loan like crazy!
Anyways, just wanted to chime in and say that not all debts are bad. The heart of the matter is living below your means in order to achieve financial freedom. If you are going on lavish vacations, dining out at fancy restaurants, and shopping at Nordstrom – all on CREDIT, that is not living below your means.
I think the example of paying off $25,000 in one year was simply her example. The main point is that they really were frugal in order to reach a goal. Basic cable is still cable TV. TV is not a need. Now, we all buy things we don’t need, but we need to realize that they are wants. It is easy to think we are doing all we can to pay down debt, when really we are giving in to more wants (cable, Netflix, eating out, buying clothes we don’t need) than we realize. I appreciated reading all of the comments on this blog and just thought I would put my two cents in, because the “we only have basic cable” comment comes up A LOT when I talk about this to people. Take care, all!
One of the most frustrating things for me during these thrift finance discussions is when families are on welfare (state medical, WIC, food stamps, state daycare, etc) and then use their families incomes to pay down there debt. It like they are proud of the fact they are paying down their debt, but it comes at the expense of me and their neighbors (the tax-payers!!)
Case in point, my sister’s family makes about the same as mine. They are on state medical, WIC, and partial assistance for daycare. They have lots of disposable income to put towards paying down their car and credit cards. My family doesn’t take advantage of welfare programs (even though we would definitely quality) and we barely make it each month.
It doesn’t make any sense to tell someone they shouldn’t take what they qualify for, however. Why is it wrong to accept WIC and state medical help, for example, when you clearly qualify? Seems like for some, not doing so and therefore “barely making it each month” could become quite a point of pride. We all find pride in different things and for some people it’s how little money they can live on and the fact that they don’t need, or choose not to take, government assistance. I just don’t understand why you would begrudge someone the benefits for which they qualify when their taking them doesn’t do a thing to help you pay less in tax money.
I think what Bethany was getting at was that we have become a nation with a sense of entitlement. It has nothing to do with pride, it has to do with providing for your family not expecting the gov’t to do so. Our county is full of people looking for their next hand-out or next program they qualify for. I was raised that you work hard, or you don’t eat. No way am I saying starve yourself or children, but part of living humble and within your means is to plan for the uncertainties. Build up your food storage for times of unemployment or sickness. Save money even if it is as small as $25 per month. We (again US citizens) have a twisted sense of a need vs a want. How many people do you know on welfare (supposedly for the poorest of the poor), but then have things at home like Internet, basic cable, telephone, cell phone, drive a car.
There’s just absolutely no point arguing this point via blog comments. My husband is a full-time student (in seminary to become a pastor) who works two part-time jobs. We are on WIC and Medicaid. One of his part-time job is online and therefore requires we have internet at home (not to mention the assignments he’s expected to do online for school). I stay home full time with 3, soon to be 4, boys 5 and under. We live in a place with no decent public transportation so we have modest vehicles. We have a phone so that we can stay in contact with the outside world and each other. Expecting people to live without those things is just ridiculous in our culture. I don’t feel the need to explain myself to justify how we spend money, but to shed light on the situation. Yes, for a few years we will need government assistance and since we are completely transparent about our income, expenses, etc., I feel absolutely no guilt in accepting that for which we qualify. Most people who are nay-sayers about people accepting welfare really have no idea what the system is like or what people’s situations are. You are free to continue this dialogue but I will graciously exit at this point.
OK, I thought of one more thing, but then I promise, I’ll leave this comment section alone!
Anyway, the problem I’m having with these comments (on this particular thread where I’ve replied) is that blame is being put on people in the system, not the government officials who set up the system in a way you don’t like. If you think WIC and Medicaid and food stamps and whatever should only be given to the absolute poorest of the poor who can’t afford anything else, then do what you can to change the system. Don’t blame us, the people who qualify for programs, who are completely honest and still receive benefits.
Suzanne,
Just an encouragement! I don’t think people are refering to you and your situation per se (your husband is working two jobs so clearly he is trying to provide! etc). I know for myself, my problem is people who abuse the system. I have NO problem with people getting aid who are hardworking, working hard, and need it! My issue is when I hear of people lying on applications to get government aid (and yes, I personally know two such people who lie to get money from the goverment for which they would *not* qualify were they telling the truth).
All we can aks it that people work just as hard are physically able and make wise financial choices when it depends upon them – in such cases, I don’t mind that my taxpayers dollars are helping out. My problem is those who abuse the social assistance programs.
Basically – I only want to help those who need help lol!!!
Suzanne,
See I have a problem w/people being on the system, and then keep on having more children. Children are indeed a blessing, but when you have to have other people pay for their insurance, their basic needs, why not put it off, until hubby is out of school, and off assistance?
I have no problem w/people being on the system short term, (losing a job or something of the like). I do have issues w/people using my tax money to get all the assistance they qualify for, and then add to the family. I don’t get it.
My intent here is to reply to Danielle. Danielle, I don’t know you, and you certainly don’t know me or my situation. Don’t you think it’s possible that our plan was to wait and that birth control didn’t work? Also, a lot of people think that birth control is actually sinful (I’m not saying we fall into that camp necessarily). Not everything is as it seems so until you know a person’s particular situation, it’s probably best to avoid judging their choices and circumstances.
I really enjoyed reading this article – AND the comments! Thanks for all the great tips – and the viewpoints from all the readers!
I live in Norway (northern Europe), and I feel more and more grateful for the benefits we have here (free medical help, free dentist for children, government sponsoring half of the cost of children day care and so on..). Well – not free as such I guess – we do pay higher taxes. But it makes life less stressful knowing that these things are taken care off no matter of our work situation.
Right now we try to live of less than one salary, – and if we lived in The States I doubt we would have been able to afford medical insurance for instance.. So my thought goes to all of you that cant afford that either.. That must be tough!
And for our family we trust God for a better situation in 2013 where my husband could get a full salary each month so that we are able to start to pay off out debts. And I will take all the advice above into account!
Merry Christmas to all of you (from a very snowy Norway at the moment..)
It seems logical to me that if a couple has a lot of student debt then they should both work and put off having children for a few years. I don’t understand why that is not done more often. I guess some people consider birth control a sin. I remember Larry Burkett saying that people could have an awful lot of children, like 20. if no birth control was used. He even said if he had it to do over, he would only have 2 children. He made these remarks on his radio program.
Many people I know put off having children and have a double income when they first get married. Except they don’t try to pay off their debt quickly–they live luxuriously, “buy” nice homes with hardly any down payment, and live the good life before they have to get serious (when the children come).
Yes, some people consider certain forms of birth control a sin (like the pill–a pill flushes the lining of the uterus so if an embryo had formed–which does happen–it wouldn’t be able to attach to the uterine wall in order to grow). Others may just want to let God control the number of children they have–not making it a sin issue, but just a releasing of control issue. Does Larry Burkett have children? I feel sorry for child #3! Wow!
I liked what Erika had to say about making “being debt-free” an idol. In an ideal world we would pay off all debt before having children, but life happens. And it’s okay. If you have health insurance and a good network of friends(to borrow items and clothes), children don’t have to be THAT expensive. How sad to view your children as an obstacle to paying off your debt more quickly.
Amen sister!
I am 28 years old with 2 children. My husband and I have no student loan debt, no car payments, but are massively underwater on our home (which we purchased in 2006 with 20% down). I am a stay-at-home mom and my husband’s take home is $2400/month. We make it work. We both want more children but many people say we’re “irresponsible” because we aren’t financially secure.
My parents foreclosed on their home 25 years ago to get ahead financially (their net worth is now nearly $8 million) and my MIL stopped at one child so she could get ahead financially. Both families regret their decisions!! They both say that if they could have seen down the corridor of time they would have had more children and worried less about money. Apparently Larry Burkett values paying off his debt more than his 3rd child.
At the end of 2009, my husband I decided to set a goal of paying off all of his student loans by 2010. In the months that followed we had to buy a new car (our ’84 camry could not be repaired), replace our septic system, travel for a funeral, unexpectedly got pregnant and three weeks before our son was born, my husband lost his job ( I stayed at home with our daughter). Going into 2011, not only had we been unable to make a dent in the student loans (other than our normal monthly payments), we had a ton of extra debt and no income and two children (in diapers). We could not figure out why God had allowed all of these things to happen, after all, being debt free is a good thing. We realized that we had never prayed about it, never asked God what He wanted us to do. Paying off those loans had become an idol for us and I was obsessed with paying it off. Going into 2011, we had one financial goal…to faithfully tithe. My husband has a job and we are a family of four living on 1900-2000 per month. We live simply and I try to get jobs babysitting in our home, when I can, to supplement our income. We are very slowly chipping away at our debt although we are most likely years away of being debt free. But we have learned to let who we are in Christ define and consume us, instead of our debt. I
“Paying off those loans had become an idol for us and I was obsessed with paying it off. Going into 2011, we had one financial goal…to faithfully tithe.”
This is awesome! I can totally see how paying off any kind of debt can become an idol! Yes, we shouldn’t let any debt remain outstanding (Romans 13:8), but God also calls us to tithe and give (Matthew 23:23; Luke 11:42). Thanks for sharing your 2011 financial goal of tithing! Great perspective!
I was blessed when we got married. My husband was able to help me pay off the rest of my college loan!! Since then, my husband and I have been working really hard to stay out of debt. It hasn’t been that hard (seeing as we’re missionaries and can’t have a credit card in the country we’re in!), and it’s been an incredible blessing!
My husband only makes $36K a year and this story still inspired me! Perhaps the numbers are throwing others off, but I understand the sentiment of this post–setting a goal and time limit and living an uncomfortable life in order to pay off debt! I love it!
We found a cheapo apartment ($300 a month–can you believe it?) that enabled us to save a TON of money when we first got married. I had $14K in student loan debt and we put all my income toward that (we didn’t want to depend on my income because I wanted to stay home with my kids once we had them). Once we paid that off in less than 2 years, all my income went in the savings to eventually use for the down payment of our house.
If you aren’t planning on paying cash for your home, I suggest getting a 15 year loan (instead of a 30 year) and paying it off in 10 years. The payments aren’t that much more and you will save thousands and thousands of dollars in the long run. I even heard that you can lock in interest rates on 15 year loans now for around 3%! That’s craziness!
Credit cards aren’t bad if you pay them off each month. The rewards are incredible (I love getting checks and gift cards in the mail!). I understand that some people psychologically spend more money with credit cards and if that is you, then don’t use them!
I would also include tithing in here. If you are a faithful tither, then you can attest to the fact of how God provides when you give Him your first fruits. Giving is something else, too. The more I give, the more I see God providing for MY needs. As I give, God has also been taking away my desire for more things. I love how that works.
We have 2 small children with a $36K income and we are working to pay our house off in 5 1/2 years. It is possible! My husband gets on the internet and has figured out how to fix most things himself–our cars, our A/C, changed our water heater–it helps to have a handy man! Instead of buying a new replacement, try to be creative and think how you can make it work with what you have! If you need a jewelry holder–make one out of materials you have–don’t buy one! I wanted to buy some canvases to make a wall painting. My husband found an old bookshelf and so I asked him if I could use the wood for my paintings instead! We wanted a patio umbrella and a couple weeks ago one of our neighbors put a broken one out for the trash! My husband spent a couple dollars at the hard ware store and fixed it!
Waiting to make purchases also helps–and praying that God would provide. I had a friend let me borrow her son’s 0-12 month clothes and her Bumbo (I didn’t even ask–she asked me!), another friend let me borrow her maternity clothes ( I asked her), my sister is letting me borrow her baby Bjorn, a friend from church has given me 2 years worth of clothes for my daughter that her daughter had outgrown. It’s amazing how God provides using the network of the body of Christ! I was getting ready to head to Target or Kohl’s to get my son some bigger summer clothes, but I was having trouble getting out of the house and they didn’t have his size online. Well, a few weeks later (and I still hadn’t gotten to the store), my sister-in-law said her son had outgrown his 6-9 month clothes and wanted to know if I wanted to borrow any of them! Even though God has been providing for me so much, I was still blown away by how He has provided in such a clear way yet again! Yes, I would have liked to buy him the clothes I really liked and also that I could keep, but this saves us money!
Bethany, what you say here is so true. My husband is a full-time student who works part-time and I stay home with our three, almost 4 boys. As you might imagine, compared to the “normal American standard” we really make very little money. We have had to learn to live on so much less than we thought possible before. AND we have seen God provide in ways we just couldn’t have imagined before. I (usually) enjoy it more when God provides in completely unexpected ways than when we’re able to buy things for ourselves in the conventional way!
Boscov’s even has better sales than Target or Kohls. And the quality is a thousand times better than Target. (and I LOVE target!) Just something to keep in mind, if you do ever go shopping. I’ve walked out of Boscov’s w/clothes retailing for $300 for maybe $40 or $50! And bags full of clothes for everyone! the other week, there were men’s shirts for $7.99!
Thanks for the tip, Danielle!
You are welcome!
Thank you for your post. I went through the postings looking for tithing. It has powerfully impacted our finances and family. The Lord reminds us regularly that He is the Provider of all our needs. Our decision to tithe and give keeps us focused on this. It may move to the back of our minds at times, yet we remember.
We bring in $50K and I feel we live lavishly. We don’t by the standard of our culture. Yet, by serving those who have far less, it is easy to be thankful.
We had to buy a new car a few months ago. It was a long and serious decision. I still think it was a good one. Even if I didn’t like it. We had to take out a loan, first in 8 years. I still wrestle with but it is working out. I knew it would, I just don’t like it.
I am home with my children and everyday I am grateful. I believe it is God’s Will for my life and the life of my family.
Your story is an outstanding example for those of us who strive for the same thing. Decisions made everyday. With such small amounts of money coming in, every decision can make an impact.
If you care to share more, I would love to hear about it.
Rhonda
We are on an adventure right now! Our goal: Pay off all our debt and save for a house within three years. My husband, 2-year-old daughter, and I have traded in our independent living and moved in with my father-in-law. My brother-in-law also lives with us. Completely non-traditional for the US, but I have actually become fond of our multi-generational home. The amazing work God and the Holy Spirit has done with us this past year is astounding. Patience, humility, understanding, tolerance…we are getting to learn and appreciate it all. Thank the Lord!
This post reminded me a lot of my husband and me when we were first married. We worked really hard and lived below our means in order to pay off my husband’s school loans. We continued to do so for the next few years in order to save for a house.
Fast forward five years and my husband is now in law school and we have just bought our first house. I am overjoyed that we have finally been able to purchase a home but at the same time it is a little scary. We have been debt free for so long and now we are starting all over! Can’t wait to start paying off these debts!
Thanks for your inspiring story!
These are some great ideas Kat! I did the same thing right out of college. I racked up some credit card debt in college and decided to live like a starving student even after I got my first real job. By living on hundreds a month not thousands, keeping the same life style (three roommates, eating ramen, not going out) I was able to pay my debt off within a year. It felt good to write those checks every month knowing I was saving a ton in interest.
I use to be a loan officer and I would see all the time how credit cards can bury someone financially.
It is always a good idea to live within your means or below it. A couple of years ago I started working from home a few hours a day. My husband and I decided to save my income and keep our same life style. Since I started working we have hit some financial speed bumps. We are so thankful for my income that keeps us in the black and we really don’t even feel the bumps that have hit us this last year because we never changed the way we lived.
I can easily understand how it can be easy to become discouraged by reading stories such as Kat’s testimony. For me personally, this feeling can be summed up in one word: JEALOUSY. (Please note I am not implying that this is true for anyone else!) When I first started becoming aware of debts & the impact they were having on my life, I didn’t want to hear about stories like this, because the hole I had spent myself into was just too deep. I wanted to avoid the responsibility. For me, this has been just one step on the road to debt-free living. The jealousy rears its ugly head infrequently for me now!
Thanks for your honesty Kate! It was refreshing. So often we have trouble ‘rejoicing with those who rejoice’ as the Bible commands us to, and when this happens, we each need to check ourselves within and ask “why?” Thanks so much for being real…..
Thanks for this article! It is a good reminder that being young and in debt is not a rare disease like it sometimes feels, and it doesn’t have to be forever. My husband and I currently have student debt that is just a little more than our combined annual salaries before tax. It can be really discouraging to think about sometimes, but I know that we have come so far with what we have paid down over the last two years.
Thanks for the reminder that this challenge can be seen as an adventure! And I know the sacrifices and difficult conversations that are required as we sort ourselves out financially will only help our relationship and communication in the future.
Well said Juliet!
I’m sure this article was meant to encourage and it’s certainly encouraged me.
I was a single mum for 6 years and lived off a part time income. I accumulated no debt as I managed every cent. I refused to have credit cards and paid cash for everything.
I am now remarried and we live the same way – no credit cards.
My hubby is self employed and money is often scarce when we wait to get paid, but we make do.
Thank you for this article.
Kat, don’t be discouraged. I loved this article. My husband just started working again today after two years of unemployment. We had little debt going in and we still have little debt (despite a surprise pregnancy in the midst of it all!). We are just not starting to feel the pinch of unemployment. We have 6 children and homesechool. Maybe we can’t get our debt back under control as quickly as you did, but the gist of it all is set a goal and time frame. We owe a family member some money. Maybe I can say, “Let’s see if we can get this money paid back by the end of the year.”
I understand what you are saying and appreciate your enthusiasm. It might take us with families and one income longer, but we can still have the goals and see the challenge.
FYI: I got an email about this post asking what we did about gift giving and dates during this year. I thought I’d share my answer:
Actually, for that year, we let friends and family know what our goal was. We neither gave nor expected gifts. For those who insisted on still giving us gifts, they gave checks that we could use toward our debt. At the time we’d just moved to a new city, so we didn’t have as many weddings or baby showers to attend as we might have if we’d lived in our college town. I think we made cookies for Christmas gifts.
Also, there were a few family members who were inspired to give birthday or Christmas gifts because they saw how hard core we were about paying off our loans and they wanted to be part of our journey.
We didn’t have any children at the time, so dates were easy. No costs for baby sitters and we love sports so we had a lot of biking, tennis and football throwing dates.
Again, this wouldn’t work long term and might not work at all for your family situation, but I hope it inspires some creative and positive thinking!
When my husband and I got married, our combined debt was massive, so bad that we both had to work full time and we didn’t even have any extra money to spare. Shorly after our wedding, and I mean shorly (4 weeks after our wedding date) I found out I was 4 weeks pregnant. Then when my daughter was 4 months old, I was pregnant again. We have been married 3 years now, have a 1yr old and a 2yr old, and have paid off over $35,000 since we first got married. It is very possible and we thank God everyday. If we want something like a new bed, dining room set, etc, we save and pay cash. I don’t even have to work anymore and I stay home full time with my children. We still have a little debt left but we should be out of debt in the next year. I know debt can be a sensitive subject but we are living proof that God is faithful and if you honor God with your finances He will greatly bless you. Pay cash for everything, it will change your life!
Jessica,
Thanks so much for sharing your encouraging story!
This is a very inspiring post and quite related to my situation. My husband and I chose to attend a private university and with that came a total debt of $100,000. No joke! And that was with some fairly large scholarships, not counting accumulating interest. But we knew this was going to be the end result and wouldn’t have it any other way. In 3 months we will officially begin our loan payments. We are very focused on frugal, simple living. We have saved, saved and saved since we graduated. I can definitely live a simple life for a year…save $25,000. But for four years? And then trying to save for a future family? A future home? Emergency repairs? Could you have lived like this for four years? I’m not sure what the best plan for us is. We’ve bounced around a few ideas
Steph,
Four years would be pretty challenging! I think our weekly grocery budget was like $25 (12 years ago) – probably not the best idea for long term health.
However, we also went to an expensive private college. And the church we went to taught strongly about the importance of paying off our loans as fast as possible. As a result we’ve seen many of our friends get our of debt in inspiring and even miraculous ways.
Some took overseas teaching jobs (obviously, research these positions VERY carefully). There are (or at least were) jobs where you could teach overseas or in inner city schools in the US and have some or all of your college debt relieved.
We also saw several of our friends have their college loans – just paid off – by a check in the mail or a Bible study group who sold many of their beloved belongings – just so these couples could be debt free and go on the mission field. I don’t know that any of these were to the tune of $100,000 but I know at least a couple were tens of thousands of dollars.
Now, I’m not saying “pray and it will be gone” or anything, but I just want to encourage you that what looks like a mountain is simply a molehill to God. Nothing is impossible with Him.
It sounds like you have a great attitude about it. I can’t wait to someday read your blog post entitled “How we paid off $100,000 in College Loans”
AWESOME!
YAY!
My husband and I are newly married, expecting our first baby in December, and living in our first home.
NOW…to get the credit card paid off! Lets see if we can do that in 4 months
This story was insightful and encouraging.
Thanks Abbey!
You can do it!!! It really is such a fun challenge…and reward when the goal is met.
Congratulations on your new little one!
I think this article is inspiring…thanks for sharing!
Thank you Jenell! I’m so glad it inspired you!
I’m not sure if this is a realistic approach for a family with children… however me and my husband don’t have kids yet, and this is really inspiring for me, since when I finish school we’ll have $30,000 of student loan debt. This is a great “before kids” plan, which I hope will set us up to have a better financial situation when the kids do come along!
I agree with it working better before kids. Our goal is two years for the same amount. We have two small kids.
Debra,
That’s definitely an adventurous goal! It was certainly easier to do since we didn’t have kids at the time, but I hope the lessons we learned can inspire families of all sizes and incomes to set adventurous goals too.
Thanks so much for commenting, Debra.
Don’t know if we will do it there are some things (like food budget) we aren’t budging on. But, this post inspired me.
For your typical younger family where husband works and wife is a stay-at-home-mom, it doesn’t work. I know for us, not going into debt beyond our car and modest mortgage is a challenge! We are proud to have no credit card debt, but then when I read these types of articles I feel like I am still not doing good enough financially.
Bethany,
I SOOOO didn’t mean to discourage you! I meant this as more of an inspiration than a “How To.” I’d hoped to inspire readers to set strong long or short term goals and enjoy the rewards to meeting them.
Not having any credit card debt is a great goal that you’ve already met. Way to go!
Kelly,
I’m so glad it inspired you. I think it’s been so helpful for our marriage to not have the extra burden of debt. I hope you’ll be able to reach your goal!
Very inspiring! In our mid 40s, we are still dealing with student loan debt that was acquired in our late 20s/30s. Now, with children, and a single income (I’m homeschooling the boys), it is a total upward slog to pay off any extra debt! Thankfully, we never accrued any consumer debt, but these loans still feel like a noose around the neck! I thought I was going to teach the rest of my life, but, as they say, having kids changes everything! I hope this post gets lots of exposure and young couples make the commitment to do this — after all, you never know what God has in store for you. Be prepared and be debt free!
Michelle,
“Be prepared and be debt free” that’s what my husband and I learned in the college ministry at our church. It made such a huge impact on us. I wish every college ministry and newlywed class taught that.
You have such a great perspective. I pray that “upward slog” gets easier and easier!
Thanks Kat–You caught me on a good day!
To those readers who are discouraged, I would just highly recommend looking into Dave Ramsey’s program (daveramsey.com). Using his debt snowball method has helped us to make a significant dent in at least one of our student loans, with the goal being that when that is paid off the whole ball of wax gets applied to the other student loan, and by then we’ll be making great progress.
Be encouraged! Some days I don’t think God is as bothered by our debt as we are, and there’s much to be learned (about ourselves) in getting it paid off.
While I understand the concept living within your means and paying off any outstanding debt, your article is not realistic for the “average” family.
For example, my husband (with a B.A) earns around $50,000 a year in the greater Portland, OR area. I am a stay-at-home mom for 3 children. We make meals from scratch, have 1 vehicle, basic cable, basic phone line, no magazines, no fancy clothes, no memberships, etc – you get the picture ……..and there is absolutely no way we could come up with $25,000 per year. That would be $2,083 per month toward debt; his take home pay after taxes and health care deductibles isn’t much more than that!!
Since the reader base of this website is stay-at-home-moms, I think this article doesn’t relate unless your husband makes a lot of money.
Maybe lots of readers on here are wealthy, but certainly not my family. Any other readers want to chime in?
I do have to admit, we’re in the same boat and it’s easy to get pretty frustrated about these kinds of stories…they are very common in this blogging circle. But we’re doing what we can, and little by little, though it may take us 15 or 20 years (Oh I hope not!), we’ll still get there.
Yes, these stories are more frustrating rather than inspiring. I think the ultimate goal should be living debt free besides your mortgage. However, these articles in the thirfty living blogosphere drive me crazy when people start speaking numbers. It is all relative. If a family earns $100,000 a year than putting $25K toward debt is a no-brainer. For a family of 5 earning $50,000 like myself it is impossible.
I can see where this type of story can be frustrating for some, but it is an inspiration for some people. My husband and I are recently married, recently undergraduates and starting out fresh. We plan on saving a large part of our income similar to this amount for student debt. But I guess we put ourselves in student loan debt so it’s our responsibility to get ourselves out…at least that’s my situation:)
Angelina, I agree with you. For a long time there was no way we could put ANY money toward debts, even though we lived uber-frugal and I only bought a few new clothing items per year for myself. My parents sent us diaper money every month to help pay for my son’s diapers. We were on food stamps and WIC. Setting a goal in that situation would have been pointless–unless it was a goal to survive. When you have more housing/utility bills coming in than you do income, debt is the last thing on your mind.
Currently, my husband has a better-paying job, but our primary goal is to save up for a move back to our hometown. Once that is done, we might be able to start looking at paying debts.
I too am a stay at home mom, have been ever since the birth of our son. Prior to that, at times my work was the only source of income as hubby’s job was seasonal. But you do what you have to do to make stuff work.
PS Putting $2000 away each month would have been more than our total income for the month. We would have had to become homeless beggars to do that.
Angelina and Joy,
I am with you ladies!! Our family’s take-home pay isn’t very much either – no way in the world we could come up with an extra $2,000 a month to put towards debt! My hubby’s take-home is $1,200 or so every 2 weeks. We live frugal, but no amt of frugality with allow us to pay off $25,000 in debt per year.
—Bethany—-
Angelina,
Oh, I’m so sorry to have discouraged more than encouraged!
My hope in sharing this story was to inspire others, especially the younger readers, to set an adventurous short term financial goal. And for those just starting out, to do everything they can to start off strong.
I can certainly imagine that it would be difficult for a family of 5 to make the same financial changes as my husband and I did pre-kids in our first year of marriage.
I can see now how sharing the monetary amount was more of a distraction than an inspiration. I sincerely apologize.
I hope, though, that you’ll be able to find some encouragement amidst my mess of words.
- Kat
I understand what you were trying to do. I think it’s just any mention of someone’s victory over debt is going to make people like us feel sad because we don’t have much hope of realizing that any time soon, if at all. So it’s not your fault–it’s just the way life is sometimes. Thanks for sharing though!
Dear ladies I think it is not relevant how much our husbands earn, whether it is $100,000 or $50,000. Kat is not implying that you have to pay off $25,000 while earning $50,000, even though I think it is still possible, if you live BELOW your means. My parents raised 6 children on $36,000 salary. We lived in a 3 bedroom house with 1 bathroom. My mother never had her nails or hair done, we did not have cable, cell-phones, never once did we eat out. My mother was a very smart women. She always knew who needed what and she knew where to find quality items for reasonable price. I think Kat wrote this article to inspire others to get out of debt. It’s too bad that we cannot accept good advice, because it makes us feel “uncomfortable.” Hard times are coming. I know most of you don’t believe this because you don’t want to believe it. Instead of criticizing people who give good advice, sit down and think what will happen if credit cards will not be available. I think people who lived through hard times such as the great depression and people who are from third world war countries (like my family) know how to live, because we never relied on others for help and their was no such thing as credit cards. My parents live in USA for 20 years now. Their house is paid off. NOT because they are rich, but because they know how to “live”. It’s not how much you make, its how much you spend. It’s sad that we cannot be happy for other people. I would like to say that my husband and I paid off $86,000 in 18-months. Yes, he has a good job but thats because he went to school for 8 years. It was the hardest 18-months in our 6-year marriage. Not because I had to sacrifice “things”, but because it was stressful. It was hard even with the income that he was bringing. I would also like to say that during these 18-months we had a baby and I was pregnant with #2. Today is has been 4 years since we paid off our debt. I drive a ten year old purple van that we bought from the in-laws for $2,800. Do we own a house? NO! Why? Because we don’t have enough money to buy one with cash. Do we have credit cards? No! Why? because we had student debt and we don’t like to be in debt. Anyone who wants to get out of debt should get Dave Ramsey’s book.
When we got married 4 1/2 years ago, my husband had about $14,000 in student loans . . . and he had just gotten a raise to all of $10 or $11 an hour! It’s not part of my faith culture for a wife to get a regular full-time job, but I did work from home (piano teaching and daycare.) My husband is also a servant and was spending hours and hours doing lots of volunteer work. This drove me crazy–we were poor as church mice and he kept working for other people for free! And I did not want to keep living in a teeny basement apartment with only a few windows!
My wise mother told me to Pray About Our Debt, so I did, rather skeptically. And God began to pour out blessings upon blessings. The ironic thing was, the financial blessings often came BECAUSE my husband was doing voluntary service–someone giving him a week’s pay while he was on a ministry trip, parents of one of his choir members feeling led to give us $2,000, a YEAR of free housing in a new house, etc.
It cannot possibly work out on paper, but we were able to pay off that $14,000 in about a year and a half. We lived frugally; we scrimped in all the usual ways (and then some!), but there is no way we could have paid $1000 per month on that debt. It was totally God’s doing.
I know $14,000 doesn’t sound like a lot compared to what some of you are facing, but it was a huge mountain to me. And I didn’t have much faith. But I learned that God has resources we don’t know about. He can get money to you in the most astonishing ways. Over and over I have seen God do this. I have come to believe that for us ladies, the best thing we can do to get out of debt is to pray. Honestly, it’s the best wage per hour we’ve ever made, and it sure “pays” better than washing and reusing zip-top bags.
Juliet,
You stated you believe it is entire possible to pay off $25,000 in debt while earning $50,000.
Our income is about $51,000. Take home each month is around $2,800. It would be IMPOSSIBLE for us to pay an extra $25,000 per month.
If I add up our take-home it only comes out to $33,600. Take off $25,000 and that only leaves our family with $8,600 per year, or $716 per month to live off….??? Please explain how this is possible? Rent alone for us is $550.
Grethen,
I think Juliet’s comment might be applicable depending on where she is living, cost of living in that area, etc. Of course, each area is different, so there will be differences in what two couples with the same financial situation can pay off (debt wise) based on whether they are living in an expensive area or a cheap one. This might explain the difference between your take and hers.
Just a thought
The author’s situation at the time of paying off the debt was very different from yours. The tips she gives can be applied to a smaller degree to anyone in any life circumstance. I find her story inspiring and plan to take a closer loo at our finances to see areas we can cu the waste. The only debt we have is our mortgage because my husband and I made it a priority to pay off debt right when we got married so we could start a family and have me stay home. We would not have been able to have me stay home on my husband’s income alone with debt. Before having children we lived on his income and used mine to pay the debt. After our son was born things were still tight. We were on WIC, got free bread at a local church on Tuesdays and spent $25 a week on groceries. Could I only spend $25 a week now? NO because we have 3 kids. I felt encouraged to be a good steward of our resources. Chip that debt down even if it is $1 at a time.
Thank you for your article. I appreciate you sharing what you did and how the Lord blessed your sacrifices. I am encouraged by what you had to say.
I really don’t believe basic cable is a need. (I’m pretty sure that, only in North America, would anyone ever think basic cable was a need. Which serves to highlight the fact that, even when we in North America think we’re in a hard place, we are often leaps and bounds against others living in areas where no one has cable, basic or not).
Way to go! We, too, made paying off college debt a priority at the start of our marriage. Since my husband and I were both working full-time, and we hoped that one day I would become a stay-at-home-mom, we decided to put all of my income toward our debt. Plus my husband would make the the minimum loan payments from his salary. This way we would be accustomed to living off of one income in the future. Being an engineer, my husband made an excel sheet that graphed our progress
It was exciting to see the debt plummet, and even more exciting to finish it off and start saving (toward a new car? house?).
Congratulations Stephanie! Charts are awesome.
My husband is also an engineer, and also loves spreadsheets. We are trying to finance moving overseas to Central Asia by saving from his salary (I am a SAHM and we have two littles). He created a spreadsheet that showed all our expected expenses and what we could put aside, and predicted our checking account balance for each day of the six months we were working on. It worked really well.