Thursday, July 22, 2010

Getting Out

Some time ago, my wife and I made a committment to pay down debt.  At the time, I owed on several credit cards, some loans, a mortgage, student loans, and a mess of medical bills.  Almost all the product of unwise decisions.  Well, I would love to say that it was a focused attempt and that everything went as planned, but it has not.

We reviewed Dave Ramsey's program, as well as Crown Financial, but were not truly committed to either program.  Even so, we put their principles to work and started to dig our way out.

About a week ago, decided to take a look at where we were in our journey.  To my surprise, we were further along than I thought we were.

We now have no credit card debt.

We have no vehicle debt.

My loan balance is now 1/2 of what it was.

I have retired most of the medical bills, and barring any new ones, should have the remaining bills paid off in about three or four months.

Aside from the student loans (let's not talk about those, okay!) and the mortgage, the remainder of my debt is less than $4,000.  My new goal is to retire that amount in the next 12 months.  The mortgage on the house is at 80% of the value, using the most conservative value.

Now, there is suddenly a new focus on debt reduction (success breeds success), which has actually made it fun to see the numbers go down.

Here we go!


Rev. Paul said...

Congratulations - that's a great achievement! My family has been on a cash-only economy for the last 10 years, and we have no debt at all.

It's hard work to get there; sounds like you're well on the way.

Did it MY way said...

Some day maybe everybody will wake up. Seems you have both eyes open. Well done.

I have been totally Free since Sept 2009. No house, no bills, no taxes, a true wanderer. Life is good.

See Ya.

Lawyer said...

Rev. Paul - that's my goal! I have a good pastor friend that did just that. He paid paid his last mortgage payment on July 4th three years ago. He has been debt free since then.

DIMW - Good for you! By the way, it was your post last week that encouraged me to check on my progress.