Debt Free...FINALLY!!

Okay, so about three and a half years ago Travis and I started going 'gazelle intense' on our debt. Before this we'd always talked about paying off more on our students loans etc...but it never actually happened. Something about buying a car, a house and having a baby (which cost about $6,000 by itself!) made it hard to put that extra bit onto our Student Loans. Well, after listening and reading Dave Ramsey we jumped on board...Baby step #1: $1,000 emergency fund, check. Baby step #2: Pay off your debts (except the house) in a debt snowball--smallest first, then wrap that payment into the next smallest debt etc...until they're gone. Well, this step is understandably one of, if not the longest/hardest step. It was especially hard for us because we didn't have any small debts! We had student loan debts...meaning our smallest was somewhere around $10,000. Thankfully the interest rate on our Direct Loans were around 2.5%-3%, so most went to principle. However, our biggest loan ($25,000) from Sallie Mae had interest rates ranging from 8%-11% and they kept going up! Every month I think we payed off less than $10 in principle! So, we wrapped that loan into the house as a 2nd mortgage...I know, I know, you're not supposed to do that because you say you're going to pay it off, and then you don't. Are you confused on all the numbers yet? Alright, nice and clear now...we started off our marriage (and added a little during the school year) with just about $54,390 in student loan debt. January 2008 (right before Isaiah was born) we started gazelle intensity and payed and payed and payed extra...we started with the Sallie Mae wrapped up in the house. We moved into the parsonage in order to free up some money to pay off the remaining $48,425!!!! In order to do this we lived in a one thousand square feet of ill planned house with mold, slugs and occasionally mice, where you can see the main street from the door, we were there for the birth of two children, making a total of four, we potty trained two children there with one bathroom. Nothing too horrible, but not the most comfortable situation. Then, in 2010 we were so close to being done...we were going to pay off the last student loan in October and instead we purchased a house in July. I do not regret buying the house, it has A/C (which is VERY nice here in Salem) as well as 3/4 an acre for the kids to run around and in general has been a blessing. However, we have now been here a year and are finally paying off that last bit! We actually sent the payment in two days ago...$678.26. We had to scrap together an extra little bit to get there (some grocery money, some spending money etc...). I can't believe we did it, three and half years and $48,425 making less than $40,000 and having no cost of living raise. Ugh...now to step #3: Building a 3-6 month emergency fund. At least we'll see our money grow this time around! However, next month is dedicated to a few neglected areas (the last little thing to make our new computer work, glasses for Travis and paying a medical bill from an Urgent Care visit this month!).

In High School there were three things I didn't want to happen. I didn't want to 1) get married in August, 2) have a baby in August and 3) still have student loan debt when my child was in 3rd grade (that's how old I was when my parent's paid off their last bit). Well, I got married in August, had my first child in August, but we're DEBT FREE over two years before my oldest child is in 3rd grade!!!

WE'RE DEBT FREE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! And not the least bit excited about it. :D : P

Oh, Jeremiah has even donated change he's found and worked for in order for us to be debt free. We're going to call into the Dave Ramsey Show when Jeremiah and Lilly get back from Grandma's because they're almost as excited as we are! : ) However, they think that we're going to Disneyland because we're debt free...we haven't been able to convince them that it's not an immediate result, but now it's a possibility! : )