How we are becoming DEBT FREE

Well before Hunter and I were married, I had started the long, slow, dredging process of paying off my debts. I was bound and determined to be debt free before I turned 35 (of course, a mortgage payment isn't being factored in at this time). I had my checklist, projected balances, and due dates all laid out. I was ready to grab this beast by the horns.

Hunter jumped right on board with my be-free-from-debt plan, and away we went. Now let me preface this:

-Some things that work for us, might not work for others

-We are in no way, shape, or form are experts... We just have a lot of debt!

- These are merely tips.

To kind of give ya'll an idea of the debt we're looking at, here's what we were faced with once we became married:

-Ring payment of $40/month

-Hunter's credit card payment of $35/month

-My car payment of $282.56/month

-My smallest student loan payment at $128.20/month

-My credit card payment $165/month

-Hunter's truck payment at $452.87/month

-My largest student loan payment at $195/month 

If you noticed, I listed these out from least to greatest. The total monthly payments we were making with all of those bills:

$1298.63

Let's let that sink in for a bit. It is true that my student loan payments aren't as bad as other people's; our credit card payments aren't as bad as other people's; etc. Regardless, they are/were bad to us and we wanted to rectify that problem immediately. To start, these are some things we have done to help us control our spending's, while paying off debt:

source

one// Dave Ramsey's snowball effect
   This is a total mind game, but it really works wonders. As you are paying off small debts, you not only have that sense of accomplishment, but you are also paying off those "little nags" that are in the way of paying off bigger things. As we have paid off each debt, we take that money that was put towards that one debt, and apply it to the next one in addition to what we were already paying on it.
 

two// Don't pay for toys unless we have the cash
   This has been a huge adjustment for Hunter and I. With having a credit card at the ready, he would justify buying things to spruce his truck up. I would just justify buying clothes all.the.time.
   Just last month, we had enough cash on hand (plus plenty of extra in our emergency savings account that wouldn't be touched) and Hunter was able to purchase new tires for his truck, along with some other things. The key to this: remember to have fun sometimes!
 

three// create a minimum $1000 savings account and build on it each month
   I cannot stress this enough... Have cash on the ready. Seriously, you don't know when that air conditioner will quit working, or have a tire blow out. Rather than swiping that credit card, you can pull from your cash resources and work on building it back up later. Plus, Dave recommends it.
 

four// $20/person/week for lunches... Leftover cash is given as tithes on Sunday or saved for the next week + Pack lunches

   This was suuuperrrr hard for me to adjust to. I was always so used to just spending money here and there for coffees, Chick-fil-A lunches, etc. People, it adds up.

 

five// Set goals - short and long-term

   That was one of the first things I did... Set goals. I immediately hatched out a plan of when I wanted each item paid off, the monthly payment going to each item, etc. It just feels so good crossing those items off our list and seeing those debts being paid off sooner than we expected.

 

So those are just a few of our major things that we do to help lower our spending habits while paying off our debts. I am happy to report that as of this date, the following debts have been paid off:

 

-Ring

-Hunter's credit card

-My car

 

I don't mean to brag, butttt..... In just 4 months of marriage, we have been able to pay those items off. Guys, that is HUGE for us! And on top of that, we have been growing our savings account steadily, we're closing in on the lowest student loan being paid off, and we can breathe a little bit easier each day. Our goal is to have all of our debts paid off completely (with the exception of the mortgage - that's our biggest bird to tackle) within our first 5 years of marriage. At this point, it's safe to say we're kickin' some major butt!!

 

Like I said, we're no experts on money management but we seemed to have figured out how to handle ours. If you have any questions at all, please feel free to leave a comment or send me an email; I would love to be one of your biggest cheerleaders! Today, I'm so so soooo grateful that the good Lord has provided means for us to accomplish our goals.