I did it! $27,000 in debt, gone!

[Kris10Leigh]

We just moved and I finally received our escrow balance in the mail yesterday. I drove to the bank and used the night deposit to get the money in the bank and then went online to send it to the credit card! We're a little short without taking us down to 0 to get through until pay day, but one week from today we will be able to pay it off.

Our debt began with our honeymoon 11 years ago. We stupidly put the whole thing on a credit card. So today, I feel like we are finally paying off the honeymoon! (Does that mean we're no longer newly weds? ) The second purchase was a Kirby vacuum cleaner because the sales lady hit us up within two days of getting home from the honeymoon and we were still unpacking and moving into our new home together. From there it was necessities we weren't expecting in our first home. Water heater, new fridge because the old one broke, down payment for a car, etc. Then we bought a new house before selling the old house and carried two payments for 11 months! (Never again!) We ended up needing to put groceries and bills on the cards. Then my husband lost his job for about a year.

So...three years ago, I finally faced it. I didn't add it all together at first because I couldn't face it. I just started throwing money at it. When I finally did add it all up it was $23,000. So I estimate we probably had $27,000 at is worst.

It has been hard! We have sacrificed! But now, I look back, and it wasn't so bad. It was mostly the heavy, heavy desire to accomplish our goal. I have spent many sleepless nights with figures dancing through my head.

We shop at Aldi for groceries, get 99% of our clothes at the thrift store and simply do not shop, ever. In fact, funny story...when my son was five and in daycare before getting on the bus for school, his shoes were starting to get worn out. I knew this, but because I never go shopping (I really don't), the opportunity to buy him new shoes simply did not present itself. Then one day I noticed his toes were hanging out the front! My husband noticed too and said he'd go that day while the kids were at school and buy him some new shoes. When my son got off the bus that afternoon he was wearing brand new shoes. I was surprised and said, "Wow, did Daddy bring those to school for you today?" He said no, the director of the daycare gave them to him!! I was absolutely mortified and promptly made a $50 donation to the center because they wouldn't accept money for the shoes!

I thought I would share our story as inspiration for anyone struggling out there. It can be done! And there is such a feeling of safety that comes with paying down debt. And now I get to watch our money grow rather than constantly sending it away and getting nothing for it.

[disneysteve]

Fantastic! Congratulations!! What a great story. I think the most important point is that you need to face your debt and set a goal to pay it off. Then you need to do everything you can to accomplish the goal. Maybe the thing with your son's shoes was a little over the top, but most people aren't making nearly the cutbacks and sacrifices that they could be making to pay off their debt quicker.

Now you can start saving and investing for the future. Keep living lean (though not quite that lean) and you will do great.

[EconoMutt]

Congratulations !!!!!!!!

[Broken Arrow]

Congrats! Wonderful indeed!

[Kris10Leigh]

I'm glad to be part of the savings club now, meaning I can now literally "save" money, as in watch it grow. We have no savings, outside of a tiny mutual fund we send a small contribution to just keeping it alive. So now my plan is to send all we can to the savings account and when the balance matches what we owe on our car, we'll pay that off freeing up a significant amount of money each month. But at least that way we'll have emergency money and I'm not in a huge hurry to pay off the car like I was the CC's. I'd love to pay it off, but I can relax about it. I like the idea of keeping the money in our savings account until it matches the payoff. And even if we do nothing, it will be paid off in 16 months anyway.

[disneysteve]

I like the idea about saving up to pay off the car, but make sure you keep an emergency fund of at least 3 months worth of expenses. I'd rather see you keep the car loan and have the EF than to pay off the car and leave yourself with no reserve.

[Ima saver]

I agree with disneysteve. You need an emergency fund. Congratulations on getting out of debt!

[LuxLiving]

Way to go.

Emergency Fund FIRST. Car payoff SECOND.

[poundwise]

Congratulations! Bravo!

[wincrasher]

Congrats on paring down your debt.

But don't obsess about it so much that you let other things go. Having your kid be considered a charity case is not a good thing and should be telling you to pull it back a bit.

Good luck with the rest!

[graceful]

Congratulations!!! WTG!

[Inkstain82]

Congratulations and fantastic! I'm right behind you (by a couple of years )

[Radiance]

Excellent, so happy for you and your family.
I am following your steps too!

[connor_zen]

Congratulations! I'm so glad to hear a success story like this regarding debt. It IS possible to eliminate debt and even start saving. Good job!

[Kris10Leigh]

It's funny. I've always thought I couldn't wait to pay off this debt so I could start living normally again. But I've learned so much. I don't mind being frugal. In fact, I like it! There are large items I want, but I can do without the small things. I really want a new refrigerator because the one that came with our new house is way too small. I won't be able to get a turkey in there this Thanksgiving! But I can save for that. But I thought frugality was a temporary thing. I thought I'd go back to shopping at the regular grocery store, eating out, going to the movies, traveling, buying clothes, etc. But I don't feel that desire at all. I'll keep shopping at Aldi and save the money I save. I'll continue shopping for clothes at the thrift store. I'll continue vacationing cheap.

We have some recovery to do and our future to plan for. I hope to send my kids to college at our expense, not theirs. But I'm happy to finally able to look forward, and no longer have to look back. And being frugal really isn't that bad.

[disneysteve]

Originally Posted by Kris10Leigh

I thought frugality was a temporary thing.

Guess what happens if you live frugally until you pay off debt and then start living "normally" again? You end up back in debt.

Your last post is a great one. Lots of people could take a lesson from that.

[red92s]

great work!

[PetMom]

Inspiring and funny (your boy and his shoes).

You felt the pain of money problems and debt and how hard (at the time) it can be to get out from under the whole mess.

Like you, I cannot fully relax unless we have a bulky emergency fund - nothing equals that. You always know you can pay off a car loan but refrain knowing the ef is the most important thing to never have another cc bill again. Great post.

[highsavings]

great job! now just make sure your debt doesn't run wild again!

[DayByDay]

Congratulations!