To those who climbed out of debt 100%, how did your life change?

.............I understand where you're coming from , But , I'm driving about 17,000 miles a year commuting too and from work . Using an older vehicle for short trips too the grocery , and a short drive to work will fit into your scenerio . Putting the amount of miles on an older vehicle for me would result in significantly greater repair costs . I will be using ~90% of the vehicle cost and expense of operation as tax deductions anyway . The circumstances for each situation are unique too each persons needs and where they place their emphasis . For me , dependability is More important than the amount of interest I have to pay on borrowed money .
.............Having to rob a savings account , Or using a CC for vehicle Repairs can be as debilitating financially as making payments . Normally , employers don't concern themselves with the logistics of how an employee gets too work , as THAT is our problem and our responsibility so I chose to buy new and prepay for repairs , i.e. extended warranty ! , fordy

It gives us options. We take the money that used to go to a mortgage and bank it (we've never had credit card or other consumer debt). That money is then available for other things. We put up a shop for dh, bought our mining claim properties, we drive newer vehicles. A few toys, too. Dh lives for winter and his snowmobiles, we have 4. Also have a couple ATVs. Never borrowed money for any of them. As hard as he works everyday, I want him to have those things that he enjoys. Not having any debt makes it possible.

I might add that we live pretty frugally, raise all of our own beef, pork, poultry, eggs, dairy, and most veges. We don't eat out much, have local tv channels only, don't buy expensive clothes, don't have cell phone contracts, etc. Sure makes a big difference in how much we spend on living expenses.

our whole married life, we've drove the types of cars that rarely need locked up--from the looks of em, wouldn't be nothin in it to swipe anyhow!! tehe!

they are kinda nice tho., they run great, and i don't feel bad stuffing a goat or dog in the back seat either.

nobody asks you to be the one to drive to somewhere!

but best of all, they only have one payment! and upkeep, as betty jean said, is usually cheaper than paying for a 'real' loan.

Only change I noticed was my credit score dropped noticably a year after all loan balances were gone and my score has dropped a little each time I cancel any card that sends me notice that they are adding a non use fee.

I continue to "pay" the equivelent of the payments I used to make to credit accounts , but they are now contributions to my interest bearing checking accounts that have no cost defined low limit Master Card and Visa brand debit cards attached that I use as my personal credit service instead of credit institution issued credit cards when I have to use plastic.

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"I didn't have time to slay the dragon. It's on my To Do list!"

Shrek,

So what are you are still earning the same amount of money but its all going to savings? Are you performing the same work?

Brian

I'm working towards becoming debt free, but I also know that if DH and I had decided to save up enough so we would not have to get a mortgage, we'd still be living in suburbia, but we would be about half way to saving up what we currently owe on our home and 40 acres.

Mostly it's about not living up to/above your means. Right now we both work but we could live on one income. Our kids are grown and we planned it this way - we bought well below our means when we moved and now we do try to save up for most of our purchases - but when we had the option of buying a used 1/2 ton truck for $10,000 cash or getting 0% financing on a brand new 3/4 ton truck for $26,000, we used the debt. It took some doing to find a Plane Jane truck, but the dealer came through for us.

We are both in our upper 40's and if DH wanted to he would only have to work one more year (he only works 6 months of the year now) and then we'd have things paid off enough that we can easiely live on my income. However both of us love our jobs and can't imagine NOT doing them at least part time.

So DH probably will not quit working - he keeps thinking of the neat things he can buy if he keeps working - this summer we'll save up for a smaller work truck (like an S-10) and then the next year he wants to save up for a new Skidsteer, and then I'm sure he'll come up with more toys he wants to buy.

Some people look at our situation and get jeoulus, but they don't see the 30 years of planning and working towards this point. We did not get where we are by accident, and it sure did not happen overnight - but we keep working and we are getting there!

Number one step to achieving any goal is to START.

Cathy

By not paying interest to an institutional issued credit card and putting the entire amount I had budgeted to make credit payments now going into my interest bearing account, I am building my available reserve and profit from the interest, not the institutional credit providers.

I even charge myself 7% interest when I use my debit card so that my monthly budget money takes an interest hit as if I were using credit to force me to think twice spend once and if I do spend I know that in a quarter the interest lost from the money spent from use of the debit card will be back in my interest bearing account along with the money I debited out on the plastic.

Knowing that I will charge myself 7% for using my debit card and reduce my pocket cash next month helps me avoid frivilous spending.

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"I didn't have time to slay the dragon. It's on my To Do list!"

being debt free is wonderful

staying there is a whole 'nuther story

there are debt beyond control sometmies. Like huge medical bills or any other tragedy or disaster that can hit in life.

but if you are debt free, you sure can tackle smaller payments if you have med bills etc.


When I am debt free if I need a new vehicle I wouldn't hesitate to go into a small time debt. Put as much down as I can, then pay 3 years on the balance and get it over.

Sometimes debt must be incurred. But how much and how long is the issue for me mostly.

Pay off one debt, then tackle another. When we "want it all at once" is when we get into trouble...at least for me before..LOL--not anymore.

We were completely debt free except for our mortgage when DH got sick. Not physically sick, really, but he, after years of "normal", became mentally ill (bipolar) and went on several huge spending sprees. In MN a spouse can file bankruptcy seperately from the other spouse, so he did that on the debts that did not have my name on them.

I'm still struggling to pay the debts with my name on them. Then there were the bad checks (that DH wrote)--the sheriff notified us that DH would be put in jail if the checks (and corresponding fines) were not paid, so I had to put those on a credit card. I just paid that off last week. I work 2 jobs, but will be laid off from the full time one on Jan. 29. DH hasn't worked since 2006. We are not divorced, and I love him very much. But I am worried about the debt. I remember how excited I was to be debt free.....

I have to say, this thread is so inspiring. Makes me see that it IS possible, even in hard times.

One thing, though, I've learned a LOT about pinching pennies....and I learn so much from all of you who have been in similar situations....

__________________
And how am I to face the odds
Of man's bedevilment and God's?
I, a stranger and afraid
In a world I never made.
--A. E. Housman

Keep your chin up, wombatcat!

It sure isn't easy going through the process of paying off all your debt. I know that I would get pretty down at times. I was eating lunch meat while my friends were out fine dining. I was driving an old, junky, beater car, one of those with faded paint, while my peers were driving around in in brand new vehicles with fancy rims.

Don't forget, and this is something that no one will tell you: Getting debt free by yourself is twice as hard as a duel income family. I know it is tough because I have been on both sides....single and getting debt free, and then later, married and paying off her debt. It is a ton easier when you have two people working at the same goal.

My heart goes out to you and your situation, but, please, please, please, keep your chin up, and realize that you are on the winning stretch.

Clove

Because I am self employed in the real estate field becoming debt free would drastically change my life and take a lot of pressure off of me. We were about 10 years away from being debt free but then a few opportunities arose that we weren't expecting to arise for another 5-10 years. We had been leasing a parcel of land next to us for some years and we figured in about 5 - 10 years it would go up for sale and we would have the savings to buy it. Well, it went up for sale this year and we had to go into debt to purchase it. Then the other parcel of land we were hoping to buy in 5 - 10 years went up for sale also. Both these parcels were for sale at about $15-20K per parcel under market value and were opportunities that we could not pass up. We are able to make the payments with no problems (along with our house payment, they are the only payments we have) but it has now made us have to change our strategies on becoming debt free. We are selling the home we are living in now and will use the proceeds to build a small, scaled down home on the new acreage. Once that is done I think we should be able to pay off the land loans in 5 - 7 years, less if my business has a few good years. Not having the house will also allow us to live on DH's income only which will take a lot of the pressure off of me.
So right now we are land poor but if all goes as planned we will be out of debt soon enough.

I'll be the naysayer on the vehicle issue. I insist on driving a newer-model vehicle, for one reason: where we live.

Here in Manitoba, and other parts of Canada we've lived in, a reliable vehicle can be the difference between life and death. With DH gone much of the time, I insisted when we moved here that I have a maintenance-free vehicle. It was an insurance of sorts for me and the boys -- I wanted a vehicle that I knew 1) would start when I needed it to, 2) could go through the snow if we got "snowed in" but needed emergency care of some sort, and 3) could get us to DH if he needed us/we needed him.

I won't drive a beater if there is any way I can possibly avoid it -- I've done that too many times in my life, with babies in the back seat, praying that the alternator/battery/fuel pump would last just long enough to get us safely home. I *WOULD* go into debt for a vehicle payment if necessary.

Each of us has different priorities. That's one of mine which may seem silly to others. Personally, I think it's silly to have money sitting in the bank while you pay interest on a debt, but others feel the need for a "nest egg". I think it's silly to pay off smaller, lower interest debts faster than larger, higher interest debts (the way the pros instruct you to), but it makes sense to others.

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Ignorance is the true enemy.

I've seen the village, and I don't want it raising my children.

www.newcenturyhomestead.com

Tracy, I have the same vehicle requirements as you. Do you buy brand new or lightly used?

I wont buy brand new and used vehicles are cheap enough for me to pay cash. A low miles, properly cared for, 5 year old vehicle can be less than 1/3 the price of a new one, especially if you purchase something during times of low demand (like a big SUV 4X4 in the summer and when gas prices are high). In terms of reliability a used vehicle can pretty darn close i think to brand new.

Sounds like all of you who are working through debt and have gotten past it are much happier! Congrats to everyone working on it, and even thinking about it!

I was raised in a 1-income family, but am an only child. I was dumb in college and got a credit card then was between jobs when I graduated and was so scared that my Mom would find out I had like 2000 in debt. I got a new job and got it payed off!

My grandma blessed me with a paid off car when she passed, and I was raised on thrift stores, and like making stuff. We had a decent sit down dinner on real plates for our wedding and I made the necklaces and earrings, paper goods like invites, hubby helped with the centerpieces, I did most of the flowers and a family friend and matron of honor did the boutonnieres, and had the rings made with recycled gold from family odds and ends and paid for everything in cash! it felt great!

We are only about 1.5 years into the mortgage, but got our first double payment off last month! (property taxes this month).

I am a huge Dave Ramsey fan. Ill admit we dont do a written budget but we talk about big purchases. I work part time, do a lot of cooking and build stuff, and we love to "curb shop" on garbage day. We have internet but no cable (Hulu.com and surfthechannel.com are great free internet TV sites)

Dave Ramsey was asking about why folks are OK with being in debt and making others rich, when if they were out of debt they could take all the money they are losing on interest and payments and bless others with it- I dig that. DH and I need to get a giving plan together- Before my dad was so sick I was volunteering just about every week and felt time was enough to give. Ive found a few sewing charities that I can do in my spare time now to scratch that itch for myself.

I believe Im rambling, but its awesome thinking what you can do without or with less of- with a little patience and creativity its a game. I got a silk cashmere sweater for $3 at Goodwill last month. Its fun for me.

Good luck and prosperity for you all in the New Year!

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Practice makes... well, better.
Gardening, seed saving, sewing, cooking, raising Cal x NZW rabbits, RIR chickens, thrift store shopping

DH and I purchase 4-5 y/o vehicles with low mileage and a good service record. We buy from a friend who lets us know when he gets a trade-in that meets our needs and when he knows the history of the vehicle and the owner personally. This has worked great for us in the past. We got a $35000 truck for $18,500 with 36,000 miles on it. We paid it off in short time and hope it will last for many more years.

Right now, I'm driving a "new" (2007) vehicle that we purchased brand new two years ago. Prior to that, I drove a "new" puddle jumper for five years, until things started going wrong.

If vehicles today were built as they were thirty years ago, I'd probably still be driving the puddle-jumper.

I have driven lease buy-backs (pre-owned but relatively new), and have been happy with them, but they typically come with a dealer warranty of some sort, and that's a big deal for me.

I've also driven a 20yo Chrysler that was great when it was in good repair, but scary when it started to "go". Way scary. I won't intentionally put myself in that position again.

__________________
Ignorance is the true enemy.

I've seen the village, and I don't want it raising my children.

www.newcenturyhomestead.com

we have been debt free, since 1997 when we paid off our house in 5 years. when we moved in 1998, we sold it for a big gain. that allowed us to pay cash for a smaller house, and then a 40 acre farm 2 years later. today my wife and i share a full time job, so in effect we work part time.
being debt free, allows us to spend more time doing the things we like to do, such as time with our son who is home schooled, and travel. you can live on very little money being debt free. i'll say that being debt free puts you more in control of your life. you aren't stuck or trapped and being beaten down in a job, or house or life. we are in control of our lives.

the key to getting and staying out debt is to live beneath your means. once you grasp that concept, life starts getting easier. we have never subscribed to the belief of buying the biggest house or car the bank says you can. our current house is a mobile home purchased for $22,000 cash. we still have the farm, and will eventually move back there. we never carry a credit card balance. i really like dave ramseys common sense money management advice.

debt free is the way to be.

keith