$37,977.38 paid off in 22 months! Sue and Jeremy are DEBT FREE!

Sue and Jeremy are debt free!  How did they do it?  Let’s find out, Sue’s been kind enough to allow me to pick her brain. 

Sue, can you give me a little background on yourself? 
My name is Sue and my husband is Jeremy, we are college sweethearts who are now thirty-something’s (how does that happen so fast?).  We live in a suburb of Minneapolis, MN and we have been married for over 8 years.  We have a very energetic 4-year-old son and a very sweet 2-year-old daughter. 

So…how did you first hear about Dave Ramsey? 
I was watching Oprah one day a few years ago and a show about debt was on.  Out of all the experts offering advice, Dave was the only one that really seemed to have a solid, doable plan to me.  I bought his book, read it, and let it sit on my book shelf for a couple of years thinking it would be too difficult…until May 31^st, 2009.  I was sitting on my computer trying to raise the credit limit on my 15k card as I was needing more money.  The limit increase was declined and I was starting to sweat and freak out.  I swiveled around in my chair and it was almost like a light was shining on “The Total Money Makeover” book.  I grabbed it, re-read it, got my husband to read it and we began.  Our backs were against the wall and we knew it.  We had no choice but to make this work because we just weren’t making it and we felt so trapped….this was our first glimmer of hope.

Interesting.  Was your husband immediately onboard after reading the book?
The first time I read it and mentioned it to him, he wasn’t on board.  The second time (5/31/09) he knew something needed to change because “our way” wasn’t working.  The whole process has actually been easier for him than me because he doesn’t like  retail therapy as much as I do.

When did you become debt free? 
April 8^th 2011!

That’s not that long ago!  Has it sunk in yet?
I don’t think so but when I do have the rare moments to try to absorb it, I feel very happy and free.

How much total debt did you pay off, how long did it take?
We paid off $37977.38 in 22 months; we also cash flowed $4800 to the IRS during this time and $1200 to a car repair shop.

Do you have a mortgage, if so do you have plans for it?
We do have a mortgage.  While our house needs some work and is a little on the small side, we love our neighborhood and community and we hope to stay.  Our ultimate goal would be to have the house paid off by the time the kids graduate from high school so we can sell it and buy a condo here in Minnesota and also somewhere warm! 

Nice game plan!
Did you call Dave Ramsey to do your debt free scream on the show?
I left a message on their voicemail but sadly have not heard back.  I do not think our numbers are the attention grabbers like some of the other callers.  Really, I just wanted to go on the radio to show that if a normal family like ours can do this, anyone can!

What was your largest single debt?
Our largest debt was my car; we owed $14940 when we started the plan.  The credit card was close behind at $14610.

Which of those two debts felt better to pay off?
For sure the credit card, that thing has been an anchor dragging me down for half my life.  I was always transferring balances and opening new cards, etc.  I never thought I would be free from credit cards and I even remembering telling myself that it is normal to carry a balance and it is OK as long as the balance stays below 10k.

What’s your favorite part about not having any payments?
Honestly, the day the debt was paid off I walked around my house looking at everything and thinking “I own all of this!”  I have had a huge, revolving credit card debt probably since the age of 18 (free t-shirt with a credit card application in college!) and I never could remember what exactly was charged on the credit card.  I never really felt that I owned the stuff around me until that day.  Not that the stuff is particularly nice or anything but it just gave me a great feeling of pride to know it is ours, free and clear! 

How did you celebrate?
We had hopes to go to a local hotel and stay for a night (so we could sleep in for once!) and go to a restaurant attached to the hotel and order anything we wanted and not think twice about the cost.  Unfortunately, these plans didn’t materialize (at least not yet) as we decided to throw every extra cent we had to pay off the debt a month early.  We were able to go to a fun restaurant and play a little bocce ball and have a couple beers before sitting down to a nice dinner.  We had a toast during dinner and talked about how far we have come and what our hopes are for the future.

Did friends/family think you were crazy during this process?
YES!!!  About six months into the plan, we realized that we were in trouble with all of the gift exchanging we were doing with our families and friends.  We knew we could get a lot further if we stopped the exchange temporarily so we sent out an email asking everyone if we could bow out.  It was well received by some folks who were likely relieved to not have to buy presents for our family of four but some people had a hard time understanding us and didn’t like this change.  I must admit there were some uncomfortable birthday parties where we would only bring a card while everyone else brought birthday presents.  A lot of times I felt guilty and misunderstood but I think people are getting used to it now.

Have you convinced any of your friends or family to go down the same path?
I do have a coworker who read The Total Money Makeover and started the plan with her husband and my husband’s good friend started working on the program recently as well.  I try not to talk too much about what we are doing with others (although sometimes I can’t help myself).  My good friends and family know what we have accomplished and if they want advice or a copy of The Total Money Makeover, I will be happy to help.

What has being debt free allowed you to do that you could not have otherwise done?
It allows me to think about what would be best for my family – me staying home with my kids or continuing to work.  There is such a freedom there; this is something that would not have been feasible with 38k of debt hanging around our neck like an albatross. 

What was the hardest part about this journey?
Probably getting used to bringing a calculator along to the grocery store and paying cash for our food.  I remember a couple embarrassing moments when I didn’t have enough cash with me and had to pull items out of my bags to return (and people behind me were offering to pay the difference).  I learned quickly to pull a couple non-essential items aside and tell the cashier that I would decide if I wanted to buy them once I saw the grand total. 

What was the easiest?
Once we found the budget that really worked for us, it was amazing how easy it was to follow it and how nice it has been to not worry about where our money is going. 

How has this affected your marriage?
We are definitely closer.  I think there is really something to be said about accomplishing a shared goal together.  I know a lot of couples fight and struggle over money and that is one of the areas where we are the strongest. 

What advice would you give someone who is just beginning their journey of becoming debt free?
STICK WITH IT BECAUSE PEACE AND FREEDOM ARE WORTH EVERY SACRIFICE!!!  Find the spend /debt payoff balance that works best for you and your family and remember that it is not a black and white process.  You are not a failure if your budget doesn’t work one month, just tweak it and move forward.  Always remember that financial freedom and peace are the ultimate goals and sometimes you will lose the battle (such as overspending one month, etc) to win the war.

Wow…that is GREAT advice.  So has being debt free as fun as you thought it would be?
It is better than I thought it would be.  I was emotional about it the entire week leading up to the last payment being credited.  I don’t think I realized what a freeing feeling it would be, I am still in shock a little bit.

What’s your next financial goal?
To get 3-6 months set aside for emergencies.  We are trying to stay as intense on this step as we were in baby step 2.

So can you share some of your budgeting secrets?
We just follow a simple excel spreadsheet that I made up at the start (it has changed a lot over the months) and I tweak it when I need to.  That is really the only way to make this work is to have your plan written down and to follow it (or make changes if it doesn’t work).  Now I am at the point where I think about my finances probably about 20 minutes per month when I pay the bills because I know where everything is going.  It allows me the freedom to put my focus and energy where I am really needed, with my family!

Awesome job Sue!  Thank you so much for your time, I really appreciate it.