Paying Off Debt: A Great Story

Happy December, Friends!

Tonight I want to share with you an exciting season that Dave and I are entering into. We have made the decision to radically pay off our student loans, literally as fast as we can. We are using Dave Ramsey's debt snowball, and since student loans are the only debt we have (besides our house, of course) we hope this will be a shorter, rather than longer, season.

It all started a couple months ago when Dave and I had a deep discussion about tithing and giving. We really want to give more without worrying about being so tight through the month, and we want to get to a place where we don't have to be such sticklers about things like our grocery budget. Don't get me wrong, I know things like that will fluctuate some each time, but if we aren't careful we can easily break our budget just on groceries. What it all boils down to is we want to glorify God with our finances, and it is difficult to do that when we are paying SO MUCH to student loans every month.

So after that discussion, we had a day where we were feeling a little down about our finances. We were thinking negative thoughts, like how we can only afford to pay the minimum balance on our loans and how there really isn't anything extra we can cut out of our budget. Then on the second day, we had en epiphany. We decided that we were not going to be victims, that our debt is temporary, and how temporary it is going to be is really up to us.

So we looked at our finances again. We saw things that we didn't see before and thought of more radical ideas that, when you think about them, aren't too radical after all.

"Do we really need two cars?"

"How much money could we save by dropping down to one car?" <~~~ a lot, actually, when you include the car payment, cost of insurance and extra gas.

"Do we NEED our smartphones? How much money could we save by downgrading back to our old 'dumb phones'?"

"Could we shave anything off our grocery budget? even just $10 a week?"

"Where can we pull in some extra income on the side?"

"What would it look like to stop using debit cards and start paying cash for everything?"

Once we started asking ourselves these questions and just entertaining these ideas, we actually got excited as we looked at the numbers and realized how much extra money we could channel into our loans. We were under no impression that it would be easy our fun, but we reminded ourselves that the luxury of having all these "things" and conveniences was costing us exponentially more than we were paying for them when you consider how much they were stunting our ability to pay off our loans.

I will never forget the day we deactivated our smart phones and reactivated our battered old dumb phones we pulled out of storage. I had wanted an iphone for so long and I had just gotten mine a couple months prior. I know it is a material matter but I won't lie and say I didn't feel that sting a little. But I also had peace knowing that we were doing the right thing. What stood out to me most about that day is when Dave looked at me and said, "This might just be one of the greatest stories of our marriage." Funny how that happens during the more trying seasons.  ;)

Now here is the real kicker. About a week after we made this decision, we no longer had smart phones and Dave had put his car up for sale. I had told my dad about our plan, and he thought it was a great idea and was very proud of us. He thought it was a little radical to only have one car with the boys, but I assured him that we would be fine. So many families have done it and still do it every day, how would we be any different? So a week later, Dad came over for a visit, and informed us out of the blue that he wanted to BUY US A VEHICLE, plus pay the insurance for a year. That way we would have two paid for vehicles and no extra insurance cost. Wow! What a blessing! We saw it as almost immediate affirmation that we are doing the right thing.

So we are now the proud owners of a new-to-us 2007 Town & Country Minivan. Let me tell you, I will never again make fun of minivans- they are AWESOME. So much room and the stow-and-go seats are so convenient! They boys also love having the extra space. I am so grateful, to my dad for his sacrifice and to God for his provision.

So here we are- still in the beginning of this little adventure. I am working on the whole pay-with-cash thing, it is quite different when you're used to never having cash! I am also looking for ways to make meals go farther and just little grocery saving tips and tricks. I am putting all my side money from doing hair directly into student loans (after the tithe), and Dave and I have already paid off one small loan and it felt GOOD.

I am so looking forward to the day we can say we are free from student loan debt. However, while the natural challenges of this season are inevitable, I am looking forward to  the unforseen blessings of this season, however simple, that will indeed make it one of the greatest stories of our marriage.