Thursday, September 20, 2012

Get Out Of Debt

Currency from Mexico, Kenya and Latvia.  

I was recently asked to share a written testimony of how we got out of debt from a friend that will be leading a Dave Ramsey course at his church in Louisville Kentucky... 

Here's a bit more of our getting out of debt story than I shared in that testimony.  

When we got married 3 years ago on August 23 2009 we started out our marriage with over $30,000.00 in debt.  Mostly school loans, some credit card debt and a bit of personal debt.

On December 11th 2011 we became debt free.  In 28 months, we paid off over $30,000.  Most of that was on one income, and not a large income at that.

Jess and I had intentioned ourselves to get out of debt so that we could serve the Lord more freely.  The same week we got out of debt we were asked by our current school leader to pray about the possibility of joining her in Hawaii to staff the YWAM School of Biblical Studies.  We didn't find that to be a coincidence.

How'd we do it?  Well its certainly a miracle of God's provision and faithfulness.  But on the tangible side...

We did our best to follow Dave Ramsey's steps.

It took some determination and some changes in our lifestyle.  We weren't losey gosey about it, we weren't just paying the minimum payment on our loans.  We were throwing large chunks of money at it every month.  We sold a lot of things, things that were valuable to us, but weren't being used.  I sold my pro cymbals, and all of my digital music recording gear.  Jess sold her trumpet.  We even ended up living with friends and family over the course of that time.

We were on a written budget, using cash.  We just went back to both of these things this month because we noticed we were spending to much.  Being back on a written budget and using cash really helps.

Engage:  Are you debt free or working on becoming debt free?  Share your story with us in the comments!


  1. The only debt I still have is my house, and it will be paid off by the end of this year!! woot-woot To do this, I have learned that I don't need everything new or right away. I have also purposely paid more on the principal each month. I keep an account of how much I charge and pay off my credit card bills in full each month. I think having parents that were raised during the Depression helped to set my understanding and value of money. I learned from them the real value of a dollar and how to save. I learned that some things are worth waiting for and that reusing and recycling isn't just for paper and cans.

  2. Hey, I recognize that photo! :)

  3. theBAKERSphotographySeptember 20, 2012 at 3:24 PM

    :)  It took me a while to find it, it was the first critique that we didn't put on the blog and put on facebook... good times!

  4. yup!  It took me a while to find it though, it was the first critique that we moved over to facebook.  good times!

  5. awesome about paying off the house soon!  complete financial freedom!  

  6. Reba and I are finishing baby step #3, a fully funded emergency fund of 3-6 months expenses. It feels great to not just be debt free but to have the cash reserves piled up in the event of an emergency. House you're next!!!
    Great story Jim.

  7. awesome congrats!


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