May 29, 2009

My Frugal Journey: Beating Down the Debt



Two months ago, I sent off the last little bit to pay off our van several months early. It was a great feeling, clicking "Pay Bills" from my online banking portal and knowing that we were that much closer to our goal of being consumer debt free.

But let me assure you, we still have a loooong way to go. ;-)

Our biggest debt stems directly from taking two losses on two houses; although we moved for jobs with relocation packages, we didn't break even on our home sales after the laundry list of closing costs and fees. The first one was a bit of a surprise; the second was not. We knew we would take a hit on that home given the short amount of time we had lived there.

I don't regret either of those decisions; we took assumed risks to further our life goals and we'd do it again if it meant getting back to the heart of it all, SW Ohio. Here, we are surrounded by friends and family surround and our kids get to grow up as part of a large, extended clan.

Priceless.

Now that our van is paid off, I'm attacking the debt we accrued from those two losses on the houses. Included in that debt are also some big car repairs we made to our 1999 Taurus (can I say ouch?) and home repairs and improvements as well.

This month, I paid 4% toward the debt we owe; not huge, but definitely a start.

Because I want to keep my momentum on this, I plan on adding a little graphic to my sidebar. I'll update it monthly with our progress.

Our goal is to knock out the debt; then? Well, we'll see. Right now, I'm focused on the current goal and don't want to get sidetracked with pretty daydreams. We already invest for our retirement and for the kiddo's college funds so once we reach that happy debt-free place, we'll have choices available to us that we don't have now.

And that, my frugalista friends and readers, is what this whole frugal journey is about: living on less so you can do more.

Do you have a debt-busting success story? Inspire us! Share what you know in a comment below!

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2 comments:

  1. we are in the same boat as you! we just finished the 13 week financial peace university class and we are well on our way to being debt free!!! we have paid off about $4000 in debt this year (with tax return of course)& put $1000 in the bank for an emergency fund. it's so calming to know that we have $1000 just for emergencies! we paid off our credit cards YEARS ago and vow to NEVER have them again, so our only consumer debts we have left are a small student loan (about $3000), car payment (about $5500) & our mortgage (about $100k). our goal is to pay off the car and student loan this year & start saving for baby #4!!! :) i'm so excited to see your progress as you go! it's so motivating to see other people's success stories! thanks for sharing!!!

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  2. Ashleigh: Thanks for your kind words. And congrats on your success at debt-busting! It sounds like you're well on your way to debt free living!

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