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Our Debt Free Family

Commit. Plan. Take action.

Traveling and Living Debt Free with Kach and Jon

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Asia, Latin America, Europe – these are just some of the places Kach and Jon have traveled while living free from debt!

Today, I’m honored to share the story of Kach Medina Umandap and Jonathan Howe, the top monkeys at Two Monkeys Travel Group – Community Travel Blog! [Read more…]

How Celeste and Rita Paid Off $49,000 of Debt in 18 Months

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Hawaii, Ireland, and $49,000 of debt gone!

In this interview, Celeste and Rita share how they’ve balanced saving money with what’s truly important to them, the sacrifices they’ve made for their goal, and the unexpected result from their debt free journey.

DogsHere is the interview:

ME:  Thank you for sharing your story with Our Debt Free Family! Please tell us a little about yourselves so our readers can get to know you.

We are Celeste and Rita, and we are both 44 years old. We’ve been together for five years and married for two, and we live in Portland, Oregon.

Rita works in law enforcement. She enjoys listening to podcasts and the radio show from her hometown, running, and playing with our dogs.

Celeste works as a nurse part-time, volunteers, and enjoys making things with her hands: knitting, sewing, and crafting.

We have two dogs and two cats. We both love to travel, IPA craft beers, updating our 1957 home, and ’80’s music.

ME: Welcome! What made you decide to focus on becoming debt free?

Rita will be able to retire in about 11 years so the idea of enjoying our retirement without the weight of debt is a no-brainer.

CatsME: How much debt have you paid off, and how long has it taken you?

With your guidance, we’ve paid off $49,048.83 in the last 18 months. Woohoo!! We now have $279,604.76 left including our mortgage.

ME: Congratulations!! What kind of debt was it?

We have paid off three credit cards, a motorcycle, two cars, and a good portion of student loans, along with making our regular monthly payments.

ME: You’ve crossed off a lot of items from your debt snowball! What did you do for work while you’ve been paying off your debt?

We both worked our jobs mentioned earlier. About ten months ago, Celeste decreased her work hours from about 35/week to about 10/week, which also decreased our income.

ME: What has your annual income been during this time?

About $65,800.00, which includes both of our incomes and rental income from the attached apartment we rent out.

ME: Did you do anything to increase your income?

Rita volunteered for two work trips where she was able to earn overtime.

ME: What sacrifices did you make to reach your goal?

Rita going on those trips was a huge sacrifice for us. She was gone for 30 to 77 days. It’s tough to be apart and away from home for so long.

We also decided to downsize from two cars to one. Now we only pay insurance/maintenance/gas for one car and one motorcycle. It has forced us to think ahead and to limit those trips “for just one thing.” We also use public transportation and ride bikes or walk whenever we can.

DIY

ME: What are your best money-saving tips?

Perhaps the most important thing we do is buy with intention. We ask ourselves, “Do we really need this new item? Can we borrow or share an item? Can we purchase the item second hand?”

We would rather spend our money on experiences than “stuff.”

With Celeste not working as much, she’s explored DIY methods to save money and decrease toxins/plastics in our home.

She makes our laundry soap, hand soap, lotion, almond butter, shampoo, and toothpaste. She’s also made produce bags from old t-shirts and reusable hankies from an old sheet.

We buy most of our dry foods (i.e. spices, rice, beans, flour) in bulk to decrease packaging and save money.

Because we produce less trash we’re able to use “on-call” trash pick up about every 6 weeks.

We wash our clothes in cold water and use the clothesline whenever possible. We both take lunch to work, and Rita has her coffeemaker at work to cut down on runs to the coffee shops.

ME: You’ve done a lot to cut your spending! What advice would you give to someone considering starting their own debt free journey?

We haven’t stopped doing the things we enjoy in order to pay off our debt faster. Instead, we just do them less often to keep us sane. Everyone is different and has different ideas of happiness. This works best for us.

Also, don’t beat yourself up for slipping sometimes. Most people haven’t been taught about money management. It takes time to learn and of course, practice and patience. Taking little steps can make a difference.

Ireland

ME: That is great advice! Have you made any big purchases with cash? If so, how long did it take you to save up?

Rita is from Ireland and goes back every year to visit family. In 2015, we both visited for about $5,000. We also took a vacation to Hawaii and spent about $3,000 on the trip.

We started saving for the trips about a year in advance, saving $100 of each paycheck ($400/month). We also used some money from Rita’s work trips for these vacations.

We bought a much-needed new mattress and box spring set for $1,700. We used money from Rita’s work trip and bought when it was on sale. Celeste made a cool headboard for $200 to go with it. The fabric for the headboard was discounted with coupons.

We also put in a small deck with used composite material for less than $200. The composite decking itself would have been $800 if we had bought it new!

Homemade HeadboardME: You’ve accomplished a lot in the last 18 months! What has been the best part about your debt free journey?

Learning about healthy financial habits has been really liberating!

An unexpected benefit is how it’s enhanced our relationship.

Combining our bank accounts and debt was really hard for Celeste due to her large amount of student loans. She didn’t think Rita should pay for the debt Celeste incurred before they were married.

It’s been a process, but through it we’ve become more of a TEAM. We’ve opened up our communication, and it’s brought us closer.

We are on track with each other and our goals are now in sync.

ME: Thank YOU, Celeste and Rita, for sharing your story with us!

Now I’d love to hear about you!

What parts of Celeste and Rita’s story did you find most inspiring? Which tips can you apply to help you reach your financial goals faster? Share in the comments below.

How Alice and Scott Paid Off $200,000 of Student Loans in Less Than 7 Years

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Today I have the honor to share with you the debt free journey of one of my closest friends!

Alice and I met during our sophomore year in college back in the year 2000.

Even back then I saw how determined and focused Alice was when she set her mind on accomplishing a goal.

I am so excited to share with you how she and her husband paid off almost $200,000 of student loans in less than 7 years!

In this interview, Alice shares why they worked so hard to pay off their student loan debt and how they remained focused on their goal for so long.

Here is the interview:

ME: Thank you for sharing your story with Our Debt Free Family! Please introduce yourself so our readers can get to know you.

My name is Alice, and I’m 33 years old. I’m happily married to my best friend, Scott.  We have one son, and we just celebrated his first birthday. We live in Oregon. 

ME: Thanks, Alice! What made you decide to focus on becoming debt free?

I came from a poor upbringing, and my family never taught me how to manage my finances.

During college I opened up a credit card and ended up with about $10,000 in credit card debt. The only way I could pay the minimum balance was by doing cash advances from that same credit card.  It was the most awful feeling in the world, and I felt like I didn’t have any control over my life.

Fortunately, after my first summer internship in grad school, I was able to pay off that debt. I never wanted to put myself in that situation again.  

The only debt I felt was justified were school loans and a mortgage. I didn’t initially plan to pay off my school loans so quickly. However, when I found out that my husband and I were unable to write off the interest on our school loans for taxes, we made it our goal to pay them off quickly.

We also wanted to make sure we were debt free (besides our mortgage) by the time we had kids. Alice in Swiss Alps

ME: How much debt did you pay off, and how long did it take you?

Our student loans totaled about $200,000, and we paid them off in about 6.5 years.

ME: That’s awesome! What did you do for work while you were paying off your debt and about how much did you earn during that time?

My husband and I are both pharmacists. Our total annual income is over $100,000.

ME: What sacrifices did you make to reach your goal?

I don’t feel like we really made any sacrifices.  I never had much growing up, and I’ve kept that mentality to live a more minimalistic lifestyle. We never felt the need to buy luxuries like expensive cars, jewelry, or electronics.

ME: What are your best money-saving tips?

Max out your retirement if you can.

In addition to that, automatically put a percentage of your paycheck into a separate account that you know you won’t touch so you never see that money to begin with. Then you won’t have the urge to spend it, and you can use it for your next financial goal. 

ME: That’s a smart strategy! What would you say to someone considering starting their own debt free journey?

The journey is tough, but once you’re debt free, the feeling is so rewarding – this huge weight is lifted. Also, when you get your paycheck, that money is truly yours.

ME: Mike and I can’t wait to experience that feeling! Have you made any big purchases with cash? If so, how long did it take you to save for those items?

We saved for about half a year for the car. For our vacations, it usually just took us a few months to save. For our wedding, we saved for about half a year. For our down payment for our house, it took us about two years to save.

ME: Amazing! You did all of that while you were paying off your debt! What has been the best part about your debt free journey?

Both my husband and I have the same mindset when it comes to finances, which has made our journey so much easier.

We never felt like we weren’t able to enjoy what we loved doing, which was to travel. To ensure we were still able to do that and pay off our debt simultaneously, we just reprioritized where our money went.

You can be frugal and still have fun.Alice & Scott Maternity

I want to thank Alice and Scott for agreeing to share their story with us.

While they are both pharmacists and they earn a healthy living now, that wasn’t always the case.

Alice and I spoke after the interview, and she agreed to let me share a little more about her story.

She mentioned her poor upbringing, but Alice had more challenges during her childhood than her family’s financial situation.

When she was little, she was part of a family of five that included her grandma, her younger brother, and her parents. Her dad was the sole income-producer for the family, working as a cook at a Chinese restaurant.

Her mother never worked because she had mental disabilities so Alice took on the cooking and the cleaning for the family.

When her mother’s disabilities grew worse, she became violent, and eventually, Alice’s little brother and her grandma moved to live with her uncle in another state.

Alice decided to stay with her parents and lied to avoid being placed in foster care. Her dad tried to escape from the problems at home and developed a gambling addiction, losing most of the little money that he earned for the family.

Alice started bussing tables at the age of 14 because she constantly feared that she and her parents would be out on the street at any moment.

Throughout all this, she clung to the idea that if she worked hard in school, she could create a better life for herself and her family.

She earned straight As in high school and college and put herself through graduate school (where she met Scott) so that she could provide financial stability for her own family one day.

So this is more than just a story of how two pharmacists paid off their student loans.

This is a story of how Alice chose to overcome the challenges in her childhood through consistent focus, determination, and hard work, and now, she and Scott are well on their way to achieving true financial freedom.

Where To Go From Here

If you are struggling with your student loans, know that there are options available to help you out.  One thing that a lot of people with large debts often don’t consider is balancing their payoff planning with refinancing.  If you do owe a ton, consider going with an outfit like Social Finance (SoFi) and refinancing.  If you owe more than 10% interest it might be worth your time.  Click the link here or go with the banner below to contact them.

More Loan Options

If you have federal student loans, you can look into income-driven repayment plans that can limit your monthly payments to a percentage of your income. If you have a good job and credit score, you may be eligible for student loan refinancing. In this case, a lender will pay off your old loans and issue you a new one with either a lower interest rate or lower monthly payment. To learn more about refinancing, check out this resource.

For more of our great articles, consider reading these:

How To Pay Off Debt When You’re Behind On Your Bills
How Lauren Greutman, The Recovering Spender, Paid Off $40,000 of Debt
Learn About How Ron and Thu Paid Off 137,000 in 7 Years
Easily Save Money With Paribus
Frustrated With Great Lakes
Walmart Savings Catcher Phone Number

How Deacon and Kim Paid Off $52,000 of Debt in 18 Months

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If you’re a regular reader of the blog, then you know that I love sharing debt free stories with you. And today I have another inspiring journey to share with you!

Deacon and Kim Hayes are a young couple living in Arizona with their baby boy.

They paid off $52,000 of debt in 18 months!
[Read more…]

How Alicia and Ralston Used Faith to Cut Their Debt By $255,000 in Five Years

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If you’re needing some motivation on your own journey, this interview is sure to deliver.

Alicia and Ralston Vaz have cut their debt by $255,000 in five years!
[Read more…]

Miriam’s Journey Out of Debt and In to the Life of Her Dreams

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Get ready to be inspired!

Every other week or so I bring you an interview about a journey out of debt for motivation that it is possible to live debt free.

Recently, I have shared Dontae and Laura’s debt free journey and Amy’s journey to financial freedom.

Today’s interview is one of my favorites!

Miriam Lilly is a 29-year-old young woman who paid off all of her debt so that she could stop saying “no” to opportunities and start saying “yes” to life.

[Read more…]

Dontae and Laura’s Debt Free Story

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Today I have another debt free story to share with you!

One of my favorite ways to research for the blog is to interview people who have paid off their debt or are on the path to become debt free.

It’s no wonder that these stories are some of my most popular posts. [Read more…]

Amy’s Journey to Financial Freedom

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I love sharing stories of real people who are taking control of their money, getting out of debt, and on a journey to financial freedom.

So far on the blog we have heard from Ron and Thu Noble and Alex and Megan Barker who have shared how they have paid off their debt.

Today I am pleased to bring you Amy Nickson’s story.

Amy is a single young woman living in Atlanta, Georgia. She openly shares with us the habits and influences that led her to enormous financial stress during one of the saddest periods in her life.

She reveals how she took control to change her financial future and is using her experiences to help others do the same.

Here is the interview:

ME: Thank you so much for agreeing to share your story with Our Debt Free Family! Please tell us a little about yourself so we can get to know you.

Amy: I am Amy Nickson. I am 28-years-old and live in Atlanta, Georgia. I lost my adoring mom two years back and broke up with my ex-boyfriend last year.

ME: I am so sorry to hear that. Did that play a part in why you decided to focus on becoming debt free?

Amy: It was a really hard time for me three years ago. My mom was seriously ill due to liver damage. I wanted to get a better job but didn’t have the opportunity due to my low credit score. I had $88,000 in outstanding debt during that time.

Being absolutely helpless and grieving, I consulted one of my friends, John, who is a personal finance expert. He advised me first to calm down. Then he said, “Megan’s (my mom) medical issues can be resolved by her medical insurance. The rest you can manage from her savings. Your first concern should be your debt.” I was at a point where if I failed to pay my debts, I would become bankrupt.

ME: How much debt did you pay off, and how long did it take you?

Amy: Well, I have paid off $51,000 in the last three years and six months. Now I just have my student loan debt left, which I couldn’t pay off during that time due to some financial hardship.

ME: What kind of debt did you pay off?

Amy: I had four credit cards, a car loan, and a student loan. My biggest blunder was buying a brand new Volkswagen Beetle during my college days.

ME: What did you do for work while you were paying off your debt?

Amy: During that time I had joined a small non-profit company as an assistant account manager. My salary was fair.

My friend convinced me to leave my job to start my own business. I have a small financial consultancy now. It is still growing, and there is lots of work to do.

I love writing so I started blogging. I used to write on a variety of topics, but now I specialize in finance. I am a freelancer and a contributor for the Oak View Law Group. I earn a big part of my bread from there. Recently, I started my own blog as well to establish my expertise in the financial field.

ME: What was your annual income during this time?

Amy: It was approximately $57,000 during my struggling phase. I earned this amount from my job, but my boyfriend at the time was too casual about his career. He was a fickle-minded guy and loved to switch jobs frequently. For this reason, I used to support him.

During that time I started using my cards on a regular basis. We spent lots of money on Starbucks, and the result was a complete financial mess.

ME: I see. Did you do anything to increase your income during that time?

Amy: Well, my mom had medical insurance so her needs were taken care of. I sold my car to pay off the huge car loan. I rented my garage out to a friend to earn some extra money. I did what I had to do.

ME: What sacrifices did you make when you were getting out of debt?

Amy: Once I sold my car, I began using public transit to travel. I put an end to the habit of spending money on Starbucks with my boyfriend. I used to go to movie theaters every weekend. But I felt like these were nothing but bad financial habits that were sucking a lot of my money and leaving me with a long list of credit card bills and nothing else.

ME: So you became more intentional with your spending. What are your top money-saving tips?

Amy: Budgeting, budgeting, and more budgeting.

My mom always did it. And my friend John told me about the benefits of budgeting and taught me how to do it.

Take a piece of paper and note down all of the expenses that you incur on a regular basis. Cut down all your extra expenses that are a total waste of money. This helps you to save some money and make bigger payments to your creditors.

ME: I love that advice! What other advice would you give to someone considering starting their own debt free journey?

Amy: Adopt frugal living habits and saving habits. These are the most effective weapons to kill any debt troubles. You need to be determined and have patience to come back from the financial strain as well.

[bctt tweet=”You need to be determined and have patience to come back from the financial strain. @AmyNickson86″]

I would like to share some frugal tips with those who are facing a similar situation:

  • One of the best ways to save is to cut down on your extra expenditures. You need to differentiate between luxuries and your daily needs.
  • I made a list of all those items that I would need to buy every week such as groceries and consumer goods. Make sure that you keep your shopping list in your handbag whenever you go to the store. This will help to ensure that you don’t end up buying more things than necessary.
  • I believe that excessive use of credit cards is one of the main reasons that people get into trouble with debt. I am no longer a crazy fan of plastics. I have decided to stop using my credit cards altogether, apart from emergency situations.
  • Generally, I use cash for little shopping. This actually helps to keep track of your single expenditures. And you can trim extra expenses accordingly.
  • I saved a lot of money after disconnecting my land-line in my house! If you are paying for the Internet, then don’t waste money on other prepaid text messaging packages or talk-time offers. Simply download apps to socialize or to stay connected with friends and family.
  • I take care when it comes to using my electrical appliances and make sure to keep them turned off when they are not in use. 🙂
  • I made it a point to pack a brown bag lunch for myself to take to work every day. My cost of eating out was reduced to zero. I gave up the habit of eating dinner in fancy restaurants on the weekends, as well. When I was racking up my debt, there were so many times that I would pay the restaurant bill by credit card. Alas! This was another big mistake.
  • Get help from a professional settlement company if you need it. As per the advice of my friend, I opted for debt settlement. The debt settlement company that I selected actually negotiated with the creditors and collection agencies to reduce my outstanding debts by about 25%.

I admit that it was not easy for me to adjust to a frugal lifestyle. It was especially hard for me to give up buying clothes and accessories that I used to splurge on. But I am glad that by adopting these good habits I have been able to get past my debt troubles and have started living a normal life again.

ME: Thank you for those great insights! Have you made any big purchases with cash since starting your debt free journey?

Amy: Luckily, I already have my house that my mom bought several years ago. Thanks to God Almighty I was able to keep my mom’s hard-earned shelter.

While I haven’t made any big purchases, I am trying to save money to buy a low-maintenance car in the future.

Also, I have a plan to start my postgraduate studies. This will help me to improve my expertise in the area of finance. I will use my degree to facilitate my career through blogging and take up some freelancing work. I think it will take 2-3 years.

In the mean time, I will plan for short and inexpensive trips for refreshment. No big trips at this time.

ME: Thank you for sharing your story with us, Amy! What is the best part about becoming debt free?

Amy: Peace and freedom. I can now sleep peacefully without worrying about creditors’ threatening calls.

And more importantly my credit score has improved since I started dissolving my financial obligations. Thus, I will have more opportunities to apply for new or better jobs or apply for a loan.

Currently, I have only one federal student loan which I am thinking I will pay off with the help of a repayment program. My main goal is to build a solid career so that I can save more money and become rich. 🙂

I want to thank Amy for sharing her story and so many great money-saving tips with our readers. I am inspired by how she took action to improve her situation during one of the toughest periods a person will ever go through — losing a parent.

What About You?

Participate in the conversation.  What parts of Amy’s story did you find most inspiring? What tips from Amy can you apply to your life? Share in the comments below.

Alex and Megan’s Journey Out of Debt

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Since starting this blog in January, I have had the pleasure of meeting some really fascinating people.

You may remember Ron, who shared how he and his wife Thu paid off all of their debt, including their mortgage, in seven years.

Today I am delighted to share the story of Alex and Megan Barker. They are a young couple living in Michigan with their two little girls.

[Read more…]

Ron and Thu’s Debt Free Story – How They Paid Off $167,000 in 7 Years

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Today, I have something a little different to share with you.

Instead of sharing more about my family’s debt free journey, I have a special guest who has agreed to share his debt free story.

Ron Noble tells how he and his wife Thu paid off $167,500.00 in seven years! They are a true debt free family because they have paid off all of their debt including their house!

Continue reading to find out how they did it and what they have been able to do since becoming debt free.
[Read more…]