Our Debt Free Journey Update

About 6 weeks ago, I posted about our family’s debt free journey. We are followers of Dave Ramsey’s Total Money Makeover program and we’ve been diligent and disciplined in our spending but there have been some challenges along the way!

2 weeks ago, we faced another challenge and this time it was my fault! You see, I run my own direct sales jewelry business and I have a Rewards Credit Card used specifically. I’m pretty good about charging business related purchases and immediately paying the balance off. Notice I said “pretty good”, I’m definitely not perfect and over the course of a year or so, the balance grew and grew…and grew. I was even justifying having a balance on the card by telling myself that the interest accrued was a tax write off for my business. Silly, silly, silly! But hello, we are on a journey to be debt FREE and we believe that any interest is BAD interest! I don’t know what I was thinking!! Maybe that business debt & personal debt were separate? NOT TRUE! Who knows what was going on in my head, haha.

I do know that we believe debt is ugly. The feelings of entitlement (I deserve it now even if I can’t pay cash for it) and helplessness (I don’t know how I’m going to pay all of these bills) that debt can create within us are ugly. But…

Have you ever noticed that God can take something ugly and turn it into something good?

Instead of continuing to make excuses, I’m owning up, I’m taking responsibility for my actions, and I’ve learned my lesson!! Because of me, we have added months to our debt free journey!! THIS WILL NOT HAPPEN AGAIN! I’m more motivated than ever to keep us on track and eradicate our debt. We are changing the Bronson family tree!

So having said that, here’s where we stand:

April 2013

1. Credit Cards — $5000
2. Personal Loans — $6000
3. Student Loan (Molly) — $5937
4. Auto Loan — $13,282
May 2012
1. Credit Cards — $5000
2. Personal Loan — $6000
3. Personal Loan — $2000*
4. Student Loan (Molly) — $5812
5. Auto Loan — $12,675
*Note, instead of leaving the balance on a credit card with 26% interest, we borrowed against our personal loan (line of credit) with is 8% interest. 
So, lesson learned. We knew there were going to be setbacks and this is one of them! I’m more determined than ever NEVER borrow money for anything again!! 
If we can’t pay cash, it’s not worth buying it right then!
Proverbs 22:26-27 “Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.” (NIV)
I want to hear from you! What are some ways that you are changing your family tree for the better? (Doesn’t have to be getting out of debt, I want to hear what’s important to you!)
If your family is living debt free right now, what are some tips you have for getting there? What are some of the challenges you faced along the way?
 

One Comment

Jaden Allred

It’s not easy to be debt-free. And if you really are eager to achieve financial freedom, the best you can do is to endure for now and enjoy the achievement in the future. Stay out from the lavish life you have and adopt the attitude of being thrifty.
Jaden Allred @ Irving A. Burton Limited

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