You CAN Get Out of Debt!
December 21st, 2007 by Ana
The past couple days I have been on this kick started by my father-in-law who insists people “need” to have credit to survive, and plonkee’s comment that I am “insistant.” Plonkee asserts that not only am I insistant that *I* will get out of debt, but I am insistant that ANYONE can get out of debt if they really want to and really try. As you can tell by the title…that is today’s post.
The first thing to getting out of debt is wanting to get out of debt. It may sound strange until you consider how many people have given up on the notion.
“You’ll always have a car note…” (auto loan payment)
“You’ll always have the house note…” (mortgage)
“You can’t survive without a credit card…”
Why make it easy for these money parasites to suck the cash right out of your bank account balance? Get mad! Get determined! Say out loud: “I WILL get out of debt!” Make a decision, make a plan (budget), then make it work for you! This is where that whole “power of positive thinking” and “law of attraction” concepts come into play: in your mind. Another corny but very true phrase that comes to mind is “If you can believe it you can achieve it.”
Folks, I hate to sound didactic here, but it’s just the truth: If I can do it then anyone can. Many of y’all couldn’t even pay your necessities on what we bring home between hubby’s E-4 Army pay, my VA Disability, and my pizza delivery money. That includes you PaidTwice, with your little snowflakes towards your debt…eventually they will roll up into a snowball…then an avalanche. Just keep the faith. That includes you Lynnae, even with your income problems right now because you know how to play good defense by making every dollar stretch. The income will come back, and then your frugal skills will get the most out of it. I’m picking on these two ladies because they particpated in my “If I were debt free” meme and both sound uncertain they can make it. Get determined…get bullheaded if you must. It’s working for me, and it will for you also!
If it’s good enough for these gals, then it’s good enough for everyone who reads my blog. If you don’t like the Dave Ramsey way, then there are plenty other ways out there to get out of debt. Personally, it doesn’t matter to me if you use the Dave Ramsey snowball or the interest-rate first snowball or something you dream up (and if it works then you can write a book about it also LOL). The important thing is that people get out from under the stress of owing more than they make. And Mom, if you read this…that means YOU too can get out of debt, even if you don’t think you are as stubborn as I am.
It’s all about the mindset folks, so let me hear y’all scream it in the comments. So, who’s getting out of debt with me???
Posted in Uncategorized |
December 21st, 2007 at 1:41 pm
ME! ME! ME! Excellent post…
December 21st, 2007 at 1:47 pm
I’m keepin’ the faith! Actually, I’m amazed at how well we’ve done since my husband lost his job. We haven’t even dipped into our emergency fund that much. So if we can do this on the income of two part time jobs, anyone can!
December 21st, 2007 at 5:17 pm
We’re gonna be DEBT FREE!!!!!
December 21st, 2007 at 6:41 pm
I actually caught myself the other day, thinking “it’s only $19, it won’t make a very big snowflake…”
I had just noticed a $19 VISA reward deposited automatically into my checking account. I hesitated a bit, then I realized how stupid I was to assume that $19 applied to my card balance would not make much difference. It will make a BIG difference if I am able to find an extra $10 here and an extra $20 there, I can gradually move up my debt-free date.
And so I logged back onto the bank’s website and used the rewards to help pay down the VISA balance faster.
If I truly wish to be debt free, then no snowflake is too insignificant.
December 22nd, 2007 at 5:44 am
When I decided to get out of debt in August ‘07, my wife was very reluctant to believe we would follow through. But know, looking at the progress we have made and the fact that we are down to 8,600 in debt, minus the house, she gets excited. She drives around the bondo buggy with pride.
We’re getting out of debt!!!!!
December 22nd, 2007 at 6:00 am
Nearly two years into Dave Ramsey’s program, I have paid off everything except one final bill! 2008 will be the year I am completely debt free!! No more student loans, car payments, mortgage, past medical bills, etc….!! It feels so good have paid over $600 this week in car repairs without blinking much of an eye or having it hurt Christmas. Ramsey Rocks!!!
December 22nd, 2007 at 6:14 am
Absolutely!!!! In the last few months we’ve paid off two credit cards (around $8000) and a business debt ($3100) and are now working on our overdraft. We’re looking at being debt free, including the mortgage, in about eight years!!!!! Not thirty years like the bank thinks, only about eight years!!!!! Yay!!!!!!
December 22nd, 2007 at 7:05 am
The beginning of debt reduction/elimination for me was to add up all my debts. I had kept them in separate compartments in my mind and I was comfortable with each of them, considered by themselves.
But when I put those numbers together, it freaked me out. NO WAY was I in that much debt! All of a sudden, it wasn’t reasonable and comfortably numb any more.
But knowing what to do about it came from attending a Dave Ramsey live event, buying and studying the FPU kit (no FPU class in my area), and listening to his show on the internet (not on the radio in my area.)
I haven’t always followed it exactly, and I haven’t been as intense about it so it’s taken me longer, but I am very close.
Last Christmas, I paid off my credit cards TOTALLY for the first time since senior year in college; and at the same time I shopped for Christmas with cash. I totally cashflowed Christmas travel, presents, stockings, and entertaining…and I am generous…and it SHOCKED ME that I could make a big fat payment on the CC’s to zero them out AND do all the Christmas stuff at the same time!
I “relapsed” since then and found myself with a bit of a balance that I paid off this September, and I realized me and credit cards are like a drunk with a drink! I can’t handle them without building up a balance. (I have nothing against anybody who can use them without carrying a balance, like my dad. I just tend to think that those people are pretty rare.)
Right now I’m going through cancer treatment, so I’m piling up cash just until all the medical bills are paid by insurance, and I know I’m not taking off too much time from work and getting reduced long term disability salary. There’s a lot of cash to pile up because I’m at home a lot–less gas, travel, entertainment, restaurants, shopping, etc. That savings account is growing nicely and by February it should be greater than my last debt–a student loan. As soon as the financial risks of cancer are past, then poof I’m paying off that sucker and I will be TOTALLY DEBT FREE…FOR THE FIRST TIME SINCE SENIOR YEAR IN COLLEGE.
Age 22 to 42 - I think 20 years of debt slavery is ENOUGH!!!
December 22nd, 2007 at 7:17 am
It also strikes me that the same Smart People who think you can’t be debt free also think you can maximize your 401k and your Roth IRA and become rich through investing…the power of time and compounding.
Well, I agree, and I’m doing that too.
But the same power of time and compounding works for debt reduction and elimination, too! It’s the exact same math!
So think of the balance sheet…reducing your debt increases your net worth just like adding to an asset. BUT debt carries a lot more “event risk”–if something happens to you, and you have a lot of payments, the feces hits the fan. And I know event risk! I’ve had cancer three times, been laid off once with a 14 month period of unemployment and underemployment, had to move across country to get the next professional job and start over…etc…so I know event risk, deep in my bones. I hope nothing ever happens to me ever again but I’m not going to stick my fingers in my ears and start singing la la la la la I can’t hear you!!! Of course there’s a high likelihood of major upheaval…look at our fast-changing, fluid, unstable economy. There are no “company men” like my dad any more–no lifetime employment guarantees anywhere.
I have tenure in my job and I know that’s no guarantee! There are political and budgetary risks even in apparently safe jobs.
So I prepare my personal finances like I prepared for the possible range of side effects of cancer treatment:
Prepare for the worst, hope for the best, and land somewhere in between!
Meaning…become debt free, pile up savings and investments, hope for great returns in my investment choices that would make me super-rich, but even with modest returns I’ll be just rich, and that’s OK because I control my impulses and lifestyle and live within my means now, no matter what the means are.
It’s a very peaceful place to be, to have that kind of a plan working.
December 22nd, 2007 at 7:24 am
When DH and I got married in May 2007 we had over $40,000 in debt and we’re only in our mid-20’s. Now going into 2008, we have less than $9,000 to go. We’re with bearcatprof - 2008 will be our year to be DEBT FREE!!!!
December 22nd, 2007 at 8:11 am
Last year at this time we thought we didn’t have 2 extra pennies to rub together. We used to call the bank to see if we had $5 to buy coffee and lose all our bank statements!
Now that we’re serious and have a budget? We’ve cash-flowed about $8,000 in moving, medical, and transportation expenses, put $1000 in the bank and paid off about $11,000 in principal on a car and 5 (now dead) credit cards just this year!!! And our income is about $60,000/year gross. All we have left are student loans, but we will have those 100% paid off (to the tune of $45,000) in December of 2009. We will be 30 when we are totally debt free and when we’re 40 we’ll have a paid-for house and I’ll be a SAHM, thanks to budgeting and getting intense about following a plan.
Thanks for posting this. I’m with you — if we can do it, anybody can!!!
December 22nd, 2007 at 9:11 am
Out of all debt but mortgage and loving it! All around me in my family: “you need a credit card for emergencies” (no I don’t) “you’ll always have a car payment” (don’t now, why would I need one later?) “you don’t NEED a 15 year mortgage” (that’s how we WANT to live, and we want it paid in 7!)
ANYONE can do it. It may be more of an uphill battle for some than others, but there’s nothing like seeing that snowball roll over and knock out another account. There’s nothing like going to get the mail and finding a bunch of catalogues and NOTHING else. There’s nothing quite like the word NO and its power.
Ana, you’re the best and you’re proving it can be done.
December 22nd, 2007 at 9:47 am
Like KentuckyLiz, I discovered the hard way that credit cards do not work for me. I don’t harp on my friends for using them, but my financial house is not stable when they’re in there. I’ll be the first to admit I don’t have self-discipline with plastic, but I’m not ashamed anymore - I just adopted a system that works around it.
Like bearcatprof, I am down to my last debt–$11K to Sallie Mae–and I’m looking to be done in 2008, God willing. Sometimes it seems impossible that it will ever be paid off, but I never thought I would be down to my last debt, either, and here I am.
I have naysayers in my life–they’re mostly people my age, who tell me I should invest my money instead of paying off my student loan. But for every naysayer I meet, there’s someone else in my life who has “made it”. They’re usually a bit older, living very comfortably, and quite respected in their field. They say to me, “If you can pay off your loans in your 20s, DO IT! You will have so many more options.” And they’re right. Not having to consider credit card bills, car payments or student loans gives me the ability to accept a high-experience, low-pay job without taking a major hit.
December 22nd, 2007 at 9:47 am
Hey Ana! I’m with you! it’s going to take me until June of 2013 to have no debt—but I will have dug out of a monster business debt and mortgage debt by then.
Every little bit helps—and I will live my 50s, 60s, 70s and 80s without ever thinking about paying a single debt payment!
YOU GO GIRL.
December 22nd, 2007 at 9:48 am
<p>http://scrapbookstoosue.typepad.com/my_journey_to_financial_f/</p>
<p>And while I’m not as prolific a blogger as Ana, here’s mine—I’m working on posting at least weekly.</p>
December 22nd, 2007 at 10:03 am
We have paid off > 36k in 2007, have
December 22nd, 2007 at 10:11 am
Just started TMMO-got our emergency fund done and have paid off around 1k in debt in 2 weeks so far on the new plan
December 22nd, 2007 at 10:14 am
Like Kentucky Liz, all our debts were in nice little compartments in our mind. Hubby had his debts and I had mine, and they weren’t THAT much……..until we added them together!!! It came to $43,000.00, and THEN we went and bought a house!!! How STOOPID! We were renting and could have still been living in the mobile home while saving money for a 20% down payment!!!!! and then getting a 15 year mortgage! REALLY STUPID!
Now 3 years later we have paid off $30K and we will still owe on the house for awhile. We only paid $63K for the house, BUT it will be a thorn in my side until it is paid off.
Over the years we have seen our income increase and we have been able to help others less fortunate than us and it really feels good, because we ACTUALLY can help them, not just hope we can or just turn them away, we can actually help them.
Foreclosure is soooooo last year! DEBT FREE IS IN!!!!!!
I LOVE YOU DAVE RAMSEY!!!!!!!
HUGS AND KISSES FROM WEST VIRGINIA!!!!!
December 22nd, 2007 at 10:34 am
Excellent post. I am keeping the faith and will be debt-free. In fact I fully expect everyone of my debts (except 1) to be paid off by the end of this year.
December 22nd, 2007 at 10:34 am
We have paid over 18K off in debt since May. We are still working it and it’s not always easy or fun. I agree having a Credit Card around is not safe. We just got into a pinch and I charged a couple of things and that has served to help us get refocused! DEBT IS DUMB! I can’t wait for us to be debt free!
December 22nd, 2007 at 11:50 am
We just went on to one income after paying off most of our debt. Salliemae is the last to go and her time is limited. You can live without CC’s, it’s actually a lot better.
December 22nd, 2007 at 11:55 am
My wife and I have paid off over $12k since October of 2006. We are expecting our first child. Despite that, I see a peaceful future. I have hope that has been restored. I _KNOW_ that as we’re knocking these debts down, paying things off, we’re going to be more and more at peace. We’re making huge progress towards living a financially peaceful lifestyle. And you know what? Since my wife and I went through FPU back in October of 2006, I can say that this is the first time in a long time I’ve been truly happy. I came off some medication for depression. I have a positive outlook on life (usually). I’m generally at peace! I take a look at friends of mine, and I feel sad for them..
I’m proud to say that my wife and I working towards getting out of debt, and once there, we will continue to work towards staying there!
December 22nd, 2007 at 12:00 pm
I’m a single gal and I’ve been on the Dave Ramsey plan since March 2007. Since then, I’ve managed to pay off $11,000 worth of debt so far. I’m down to $4k on my car and then my big thus far; I would have never imagined in my pre-Dave days I was capable of doing this so quickly!
It’s also changed my whole perspective on life and finances. I don’t NEED a stupid credit card or car note. The only thing I need to do is be a good steward with what I am given and freedom and peace of mind will be mine.
Thanks Dave Ramsey and to all the people that have the same outlook that I do! You’ve all helped me out so much!
December 22nd, 2007 at 12:13 pm
I am sooo with you!! I appreciate the day I found Dave Ramsey’s book; it has made such a difference. I can’t wait to scream,” We’re Debt Free!!!!!!!!!!!”
Carol
December 22nd, 2007 at 12:23 pm
DH and I were married in July 2005. I was 28, DH was 27. We had $23,556 in Credit card debt, $29,969 in car debt and approx. 82,000 in student loan debt for a grand total of $135,525 (not including the 7.5% interest on that student loan).
In November 2005, my aunt gave us Dave Ramsey’s TMMO book. December 2005 was our first budget. The first and most important step was committing to NEVER use credit again!!!! We cut up all of our cards that very month.
Within 1 month, we had our 1,000 emergency fund in the bank. Within 5 months we knocked out our 1st stupid credit card. By March 2007 my car was paid off. By April 2007 we were completely CREDIT CARD debt free!!! By November 2007 DH’s car was paid off.
This month (Dec.2007) we have already put over $3,000 on our very last debt (my student loan). The balance is down to $71,380.47. Our goal is to pay it off by 11/09; however, we KNOW it will be sooner!!! Yes, we will have paid off more than 140,000 in debt by that time, but boy will it be worth it to scream “WE’RE DEBT FREE” to Dave on the radio!!!!!!!!!
HOW DID WE DO THIS?!?!?
We increased our take home pay through hard work and overtime:
In Dec. 2005, we brought home $5,552 a month.
Now, in Dec. 2007, we bring home $7,088 a month.
**we cashflowed my graduate school so I was able to get a job paying $5,000 more a year
**DH works overtime
**We work 2nd jobs throughout this process (cashier at Target, on-line surveys, evening file clerk, etc).
**we live on 1/2 of what we make
**we don’t even THINK about credit cards
**We STICK TO THE BUDGET
If WE can do it, YOU can do it!!
December 22nd, 2007 at 12:35 pm
Absolutely, anyone can be debt-free! We have about $12K left on student loans, and we’re paying them off on $28K a year! Then we’ll be completely debt-free - and never, ever, ever again in our lives will we have debt other than a mortgage. The thought of even having debt makes my stomach church - why would anyone WANT to owe anyone anything?
If our income stays the same, we hope to be debt-free in April 09 (hopefully it will go up, however). Then we’ll save for our fully-funded emergency fund, then cars - so we can pay for them in CASH, then a huge down payment for a house. We’re so excited!
December 22nd, 2007 at 12:42 pm
That would be “churn,” not “church.” Oops.
December 22nd, 2007 at 12:45 pm
Excellent post! I used to think that we would always have a car payment, house payment, and credit card debt. However, after going through Financial Peace University, I know that we CAN get out of debt and we are working hard towards that. Right now, our snowflakes are few and far between, but we can see that it is going to start snowing harder!
Thanks for this post. Others CAN get out of debt if they get mad about being in the same old situation and decide to do something about it.
December 22nd, 2007 at 1:41 pm
I can’t imagine going back to the days of living in BONDAGE to the credit card companies! We’re slated to be debt-free (all but the house) by this time next year! We’re just so excited. We know that we’ve changed our family tree FOREVER!
Debt is DUMB!
CASH is king!
It’s so eye-opening once you start thinking in terms of CASH! “How many hours would I have to work to pay CASH for this, or that I think I NEEEEED?”
December 22nd, 2007 at 4:59 pm
Our projected debt free date is Dec 2010. It ABSOLUTELY can be done once you decide to do it.
Credit is for people who aren’t willing to wait for what they want. I’m proud to be a grown up.
December 22nd, 2007 at 6:08 pm
Dave Ramsey always says “the borrower is slave to the lender”. I hate being indebted to someone and I’ve committed to never borrow again. I no longer want to be the borrower and have just one single debt to pay off except my house. I can’t wait to call Dave’s radio show and scream “I’M DEBT FREE!”
The best thing is that ANYONE and EVERYONE can be debt free with a little commitment and determination.
December 22nd, 2007 at 6:24 pm
WTG Ana! I WILL SCREAM I’M DEBT FREE next year!
December 22nd, 2007 at 6:41 pm
My family is out to prove that you can live without credit (despite the very, very popular opinion otherwise!). We are currently paying off debt at the rate of about $2,500 a month through my job, part time job, and various “snowflake” sources via online work and passive income. It can be done, and in our case, it will be done! Keep the faith!
December 22nd, 2007 at 8:15 pm
We’re with you.
one student loan and the mortgage to go - 2008 we become debt free except the mortgage and we’re on a 15 year fixed and owe less than 80% of what the house is worth. No HELOC for us!
December 22nd, 2007 at 10:37 pm
Free at last Free at last..Thank God I am free at last of credit card debt…Only house to go..
December 23rd, 2007 at 12:43 am
Anyone *can* get out of debt, it’s the simple mathematics of living on less than you make. The issue seems to be those who don’t *want* to get out of debt, and like crabs in a basket want to drag the rest of us back down to where they are. Misery loves company and all that.
I’m not there yet, but there will come a day when I no longer owe anyone for anything. Feel sorry for me if you want, tell me I’m “weird” if it makes you feel better, but I know I will be enjoying a peace-of-mind you can’t even conceive.
December 23rd, 2007 at 8:33 am
Debt Free since 11/08/07! It feels great!
December 24th, 2007 at 3:33 am
[…] ugly haircuts and all! I will fight the good fight, create all men equally . . . and BUURRRRRN with a fervent desire to RID MYSELF OF DEBT!” (Maybe DebtFREE-Revolution will post that picture she sent me of her with blue and orange face […]
December 26th, 2007 at 11:03 pm
We been debt free cept the home for many years now, it is truly amazing how fast you build wealth when you have all that cash available to do the important things with, like invest for retirement. Heck we kept the kids college fund, since we can cash flow it. When you only write 5 checks a month its cool - home, cell, cable and utilities. then its just food, savings, and fun. Car insurance? thats one check at the beginning of the year (10% discount for doing it). Also paying with cash makes things not only cheaper cause you wait till you have the money to buy it (GPS was 199 this week, 399 last year woot), and then often you get the 5-10% discount from the retailer who is not paying the creditor for the use of VISA or worse 6 months “not the same” as cash. Debt freedom makes you think different, act different and be different. Your income will rise cause you will have an emotional high that bleeds into your actions. Keep pushing, so you can make it to freedom, most never see it. Just do it, later you can go back in debt if you choose to work forever, or you can set your sights right NOW on an amazing journey that one day allows your money to work harder than you can
December 26th, 2007 at 11:48 pm
My dad was actually a big Dave Ramsey fan, and although I never got FPU for christmas or anything, he still instilled a hatred for debt in me.
Because of this, I’m 22 and I graduated from college with NO STUDENT LOANS (and no help from my parents, who were broke at the time). I’m married with a gross household income of about $50,000 and were living in our first home, which should be paid off in 15 years or less…..which would make me 37 :). I don’t have ANY payments..which leaves me all of my income to budget as I wish.
Were off to a good start, and right now my plans include an early retirement. It is possible to live a debt free life, and let me tell ya…
IT FEELS GREAT!!!!!!
December 27th, 2007 at 7:01 am
4 months to go baby!! We’re halfway through Sallie Mae and hubby’s truck is up next. We’ve paid off around $51,000.00, not including all the medical bills that have come up along the way (paid in full and in cash). The house we built this year will be paid off in 4 years also. You better believe anybody can do this, all you need is the will!
December 27th, 2007 at 7:42 am
Been stupid and broke our entire life together–almost 30 years. Got pushed off the cliff when the job was outsourced and it almost killed us. Decided to the money right this time.
We have saved money for our emergency fund, we paid over $2300 in just 3 months to pay off our vehicle, and as of January ‘08 we are snowballing $1000+ onto student loan debt. No credit cards, no loans, we are living like nobody else so one day we can live like nobody else. FREEDOM is a wonderful future.
What could YOU do if you were 100% DEBT FREE?
December 27th, 2007 at 8:14 am
When I started writing out my budget and sticking to it, I felt like I got a raise. It was an eye-opening process. If I can make progress toward getting out of debt on my smallish income, anyone can. Just get creative and make your dollars stretch.
December 27th, 2007 at 8:27 am
Excellent post. Keep after it folks. We are totally debt free including the house and it was well worth the sacrifices to get here. Don’t get discouraged and keep with the plan.
Life is good.
December 27th, 2007 at 9:44 pm
I started working the Dave Ramsey program in August of 2007. I haven’t used a credit card since then & have paid off almost 6,000. Even with emergency oral surgery 3 weeks ago & a fall requiring a 3,000. ER visit 5 days later,I still paid ALL CASH for Christmas & will go into 2008 with no Christmas debt! WOO HOO! I love that I now actually THINK before I part with my hard-earned $$! I WILL be debt-free by 2010. YIPPEE!!
December 27th, 2007 at 10:10 pm
We are currently working on BS2 and look forward to being completely debt free in early 2009. We paid all cash for Christmas, are living out of envelopes, and do a written budget that we both have a say in each month. We are also working with many others to help them through the process. Keep up the great work everyone, I am excited that we finally drank the kool-aid.
December 27th, 2007 at 10:46 pm
We are currently debt free, except the mortgage. Today, we have enough to be able to share our good future with others. We still are getting starting investing and killing off the house payment, but no longer think, we’ll always have to make a house/rent payment. Amazing gift of freedom!!!!
December 28th, 2007 at 11:04 am
[…] (You CAN Get Out of Debt) […]
January 15th, 2008 at 8:08 am
[…] You CAN Get Out of Debt! @ DebtFREE-Revolution “Why make it easy for these money parasites to suck the cash right out of your bank account balance? Get mad! Get determined! Say out loud: “I WILL get out of debt!” Make a decision, make a plan (budget), then make it work for you!” […]
January 16th, 2008 at 12:46 pm
[…] presents You CAN Get Out of Debt!: “The important thing is that people get out from under the stress of owing more than they […]
April 1st, 2008 at 12:02 am
[…] Pay off debt: The amount of consumer debt I used to have was ridiculous. Being shackled with high-interest credit card debt caused me to have […]
April 6th, 2008 at 4:36 pm
Debt relief ain’t an easy thing to achieve especially when there are so many cool things to but with the money we need to pay our debts. Instead of paying our credit card bills we tend to make even larger ones. What do we need so many things for? One should really spend after he knows those money belong to him and him alone.
April 13th, 2008 at 7:02 am
I think that your blog will inspire many people who are in a siilar situation. I am a big fan of bloggers who use their blogs as a means of being accountable for some aspect of their life, in this case personal finance. I always think that the personal perspectives are always the best.
May 7th, 2008 at 9:41 am
Just think that you have no debt to pay, you can save lots of money and invest in a small business or even stocks. Why have debts when you can have a nice investment that can earn you a great deal of money…
May 20th, 2008 at 6:16 am
[…] You CAN Get Out of Debt! - It’s true! If you don’t believe me, then read this for a second opinion. Make the decision to be free today. […]
June 26th, 2008 at 9:33 pm
[…] can do it too. Get mad! Get determined! Get out of […]