On Becoming Debt Free

3 07 2010

We are believers in Dave Ramsey’s debt free mantra.  I found him when I was single. Just picked the book off the shelf at the bookstore, took it home, and devoured it within a couple of hours.   At the time, I had about 25 dollars left over every  month to go toward debt, mainly because my rent was astronomically high.  But I was only a few months from moving in with my boyfriend (now husband) and knew my expenses would drop substantially.  All together, hubband and I had over 35k in debt when we started in March 2009 (not including my student loans–we’ll get to those much much later).  At this point, we have about 13k left plus a new car loan.

I am not happy about the car loan.  However, when Hubband got offered this job, we were a one-car family.  How was that going to work?  We could’ve tried to live very close to his work, but it would’ve been about 600 dollars more a month in rent.  That was not going to cut it on his income, not with me expecting a third and not working.  So we bought an 8k Subaru with a car loan from USAA.  We at least got a great rate, and our payment is less than 200 a month, with insurance about 500/year.  It’s a four year loan, so there is an end, but we plan on paying it off as early as possible.

For now, though, we’re not focused on that car.  We are getting rid of that revolving credit!  Hubband has a second job on the weekend as a food demonstrator, and although it’s a strain for us to be apart 6 days a week,  we know it’s not permanent.  It’s not like that money is funding our vacations.  Instead, it’s going straight to debt. We deposit the dough and it immediately goes to debt.  We pretend it’s not even there.   I can say with confidence that we’ll be paid off by spring 2011.  I would say earlier…but babies can bring unexpected expenses and the state of Missouri is going to demand about $600 in personal property taxes come January.

Maybe I’ll talk about how we paid all this stuff off on another post.  I’ll give you a clue, though.  We have drastically changed our lifestyle.

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