Our Debt Free Journey Update #4

I just wanted to check in and tell you that we can FINALLY see the light at the end of our debt tunnel =)

To get you up to speed, here are some previous posts about us getting out of debt:

Our Debt Free Journey
Our Debt Free Journey Update
Our Debt Free Journey Update #2
Our Debt Free Journey Update #3
3 Biblical Truths About Money 

Last fall, Lee & I completed Dave Ramsey’s 9-week Financial Peace University class. And oh what a blessing it was!! =)

We found out that Baby Bronson #2 was on the way the week after the class was over. Since we are following the 7 Baby Steps and we’re on Baby Step #2, which is working our Debt Snowball, we had to adjust to get ready for Baby A2.

We’ve stopped paying extra on our debt and now, we throw everything extra we have each month into savings. That way, if some surprise medical bill were to pop up, we would have stockpiled cash in our savings account to pay out of pocket for it. Once Baby A2 is home safe & sound and her delivery is paid for in cash, we use what’s left over to pay off debt. Our debt needle won’t move much until July/August but we’ve seen our savings grow tremendously.

My husband tragically lost his father back in 1995 but out of that situation, God truly has shown favor & blessings to us. All of his inheritance was invested and when he was 18, my husband paid his grandfather cash for our house. Not having a mortgage is a HUGE blessing and one of the main reasons why I’m able to stay at home with our kiddo/s. We also took some investment money out to pay cash for our wedding/honeymoon. Some of the investment companies have gone public in the past few years. And I should tell you that, my husband has took a huge loss on his investments in 2008.

We decided that it would be smarter to sell our stocks, take the loss, and use the money towards getting out of debt than it would be to let it sit in the stock market and wait for it to get back to where it was 7 years ago. The amount we sold a few weeks ago will cover paying off my Student Loan, which will leave us with just our car loan.

Which brings me to another financial lesson we’ve learned: don’t buy a car out of your price range. We bought my grandfather’s 2006 Explorer from his estate in the Fall of 2012 and while it was sentimental, it was out of our price range. More than double what we should have spent. We had great reasons for buying an SUV that were completely justified (at the time, I was working 3-4 nights a week and was planning on continuing that after Baby A was born and my husband’s beater car is not safe enough for kiddos to be in) but we should have been more patient & looked for a safe, reliable used car in our price range.

So the plan is to sell the Explorer and pay off that loan. As long as there are no surprise medical expenses with Baby A2, what we’ll have leftover from paying off the 2 loans & her delivery will be more than half of what our new to us car budget is. We’ll have Lee a safe, reliable used car in no time. Plus, we’ll FINALLY be DEBT FREE!!

I see the light at the end of the tunnel!!!!

Here’s the progression of us paying off debt since April of this year (when I started my blog).

April 2013
1. Credit Cards — $5,000 
2. Personal Loans — $6,000 
3. Student Loan (Molly) — $5,937 
4. Auto Loan — $13,282 

May 2013
1. Credit Cards — $5,000 
2. Personal Loan — $6,000 
3. Personal Loan — $2,000* 
4. Student Loan (Molly) — $5,812 
5. Auto Loan — $12,675

September 2013
1. Credit Cards — $5,000
2. Personal Loan –$6,000
3. Personal Loan — $2,400
4. Camera — $250*
5. Student Loan (Molly) — $5,797
6. Auto Loan — $11,441

November 2013
1. Credit Cards — $5,000
2. Personal Loan –$6,000
3. Personal Loan — $2,400
4. Camera — $250*
5. Student Loan (Molly) — $5,532
6. Auto Loan — $10,825


March 2014
1. Credit Cards — $5,000
2. Personal Loan –$6,000
3. Personal Loan — $2,400
4. Camera — $250*
5. Student Loan (Molly) — $5,331
6. Auto Loan — $9,893

So tell me,

Are you and your family working to get out of debt?

Did you pay cash for your car?

Have you tried any of Dave Ramsey’s classes/books/resources?

Blessings,
Molly

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