For the debt-free: what was your story?

[terickson82]

Hello there. I'm new to these boards but have been a proponent of personal financial fitness and smart budgeting for the past few years. I'm curious to know what people have gone through to become debt-free (whether they already have accomplished it, or in the middle of it). Did you work overtime, extra hours, sell a lot of stuff, etc?

I'm 26, male, single, and I have been debt-free for the past eight months. My story of being debt-free began a couple years ago when my dad gave me Dave Ramsey's book The Total Money Makeover for Christmas. I was younger at the time and thought I knew what I was doing, but after reading even the first chapter of his book I knew then I actually didn't have a clue. My journey to being debt-free consisted mainly of becoming 10x more focused on paying off my debts, which included student loans, my car, and various credit cards. Any money I had extra after the utilities, I threw it towards one debt to knock it out, then snowballed that payment into another debt, and so on. I didn't buy frivilous things, and I still don't. It took about three years, but it was so well worth it. I love being debt-free and having control of my finances!

Now the biggest portion of my paycheck every month has been used to build up my emergency fund (which I'm hoping will be completed by spring of 2009). It's so nice to know that I'm paying myself instead of the banks every month!

So now... what's your story?

[m3racer]

Too bad the average American doesn't have your common sense. Good job!

[terickson82]

Too bad the average American doesn't have your common sense. Good job!

Thanks! A lot of people think of common sense as "obvious information" and dismiss it, but those are the people who need to use it more than anyone else. Sounds like you've also got a good handle on things as well. This is a nice online community.

[maat55]

I've been a DR fan for a few years. Originally, I sold my house to get debtfree and then went back in debt on my truck. Last year I got focused again and began paying heavily towards my truck while paying cash for my daughters wedding.

In January, I still owed 3k on my truck and had no EF. I quit my membership at the golf club, made a strict budget and built my EF to three months then paid of my truck, then finished my EF to 6 months. I've even built EF's in my business account and personal account.

I've read a library of books I bought at goodwill on personal finance and real estate investing. The sacrifice has been well worth it. We save 25% of our take home towards car fund and investments. When the economy gets back to normal, i'm going to start paying extra towards my house.

I'm debtfree(other than the house) and staying that way.

P.S. I've recently started using a CC to pay every normal bill I would pay(Not for eating out or clothing or things that cause me to over spend.) that I can. So far, I am averaging 80.00 dollars amonth towards my house payment, in rewards.

[Ima saver]

I bought a house at a young age (21) and paid extra on it every month. I got it paid off when I was 32 and have not had a house payment since. I did have some credit card debt, but decided that I wanted to be debt free. So, I made a new year's resolution to pay off my cards and never charge more than I could pay off each month.

[fruitbowlk]

I had a dd two years and I said to myself I have to do better for her and myself. So I started going to the library and checking out Suze Orman books which taught me to respect my money an to say no to people when it comes to lending out money when you don't have money to lend. I found this board and learned about Dave Ramsey and I started checking out his books and his books gave me a plan to follow and then I started to search for a church home and they started FPU and I have been on a roll every since. I am excited about being debt free in July 2009. In addition, I hope it will be sooner than that since I am putting all the overtime money I make towards my debt. Everything I learned I am sharing with others. I have a friend that comes to FPU with me and she brought her friend this is a movement to me not just something to do. I started a forum for African-American women and there finances. Moreover, I am hoping that the forum blesses them as much as this board and Books and Suze Orman, Dave Ramsey has blessed me.

[zakity]

When we were young, DH had a fit about me doing the bills. So, being stupid, I let DH handle the bills. After a few years, I found out that he was paying the minimum on the credit card instead of paying them off every month.

When I was doing them, he would ask me every day where things were. If I didn't know because I hadn't called the bank (automated thing) yet that day, he would throw a fit. So, then, he wanted to take over the bills. When I would ask how much cash we had so I could run errands, he would tell me he didn't know. When I would pressure him (wasn't going to throw a fit like he did), he would whine and complain. So, we made an agreement where I would spend up to $200 a month (because we could afford that) on the credit card and he would pay it off every month.

Let's just say that I still haven't forgiven him and that was about 12 years ago. I took the bills over and he isn't allowed to touch them anymore. He does have fits sometimes about it and I offer to let him do the bills knowing he won't take them back. He likes me doing the bills and stuff because I am better at it and I keep us in the black and he still gets to buy some toys here and there.

So, to pay it off, I went to work right after I had the twins. The day they turned 7 weeks old, I was working. I worked part time at night and he worked full time during the day. I didn't sleep for basically 6.5 years (only like 2 to 4 hours a day). I paid off everything, his student loans, the credit cards, everything.

We only have the mortgage left. It is only a 15 year one and we are a little more than halfway through it.

[terickson82]

I had a dd two years and go and I said to myself I have to do better for her and myself. So I started going to the library and checking out Suze Orman books which taught me to respect my money an to say no to people when it comes to lending out money when you don't have money to lend. I found this board and learned about Dave Ramsey and I started checking out his books and his books gave me a plan to follow and then I started to search for a church home and they started FPU and I have been on a roll every since. I am excited about being debt free in July 2009. In addition, I hope it will be sooner than that since I am putting all the overtime money I make towards my debt. Everything I learned I am sharing with others. I have a friend that comes to FPU with me and she brought her friend this is a movement to me not just something to do. I started a forum for African-American women and there finances. Moreover, I am hoping that the forum blesses them as much as this board and Books and Suze Orman, Dave Ramsey has blessed me.

Amen! Great story. Once you get closer and closer to your target date, it's going to feel better and better and that weight on your shoulders gradually subsides. Keep up the excellent work and also keep the faith!

One thing I should add to this thread is that I do have a hobby that ends up being quite expensive when all is said and done, and that is I play ice hockey (during at least the fall, spring and summer seasons). The league fees and equipment, when I do need to buy it, add up to be somewhat sizable, but this is something I enjoy doing very immensely and passionately. I took a break from playing hockey while working on paying off my debt, but now I can afford to play on a regular basis. And yes, afford, as in it doesn't add up to more than what I can swing. I consider it to be an investment for my personal health and well-being, seeing as it's a great cardiovascular workout, it keeps me in great shape, it's my biggest stress relief, and it improves my overall quality of life.

Other than that, though, I don't spend much on other things.