If we are going to talk about a Debt Free Journey, we need to start at the beginning. How did we get into this mess in the first place? For me, it started in college. Like many American students, I thought you just took out student loans. That is how you go to college. This is normal. But YOU DO NOT HAVE TO TAKE OUT LOANS TO GO TO SCHOOL!! (5 Ways to Pay for College Without Loans) Now, I know that. It's not a pipe dream, people. It just takes work and common sense.
Until Adam and I got married in December 2000, this school loan of $24,000 was my only debt, but it still weighed on me. Our first step into combined debt slavery (Proverbs 22:7) was financing our wedding bands. I walked into the mall jewelry store thinking, "I know we can't afford the rings. What are we going to do?" I was surprised to learn about "financing." Get what you want immediately without having the cash. The next slide into debt was putting our honeymoon, a Disney Cruise/Land Package on my credit card. I remember saying, "Let's just pretend we are rich!" while on the ship. The debt "hangover" that came when we returned to real life was oppressing.
Next came school loans we took out for Adam to finish off his bachelor degree all the while continuing to live on a couple credit cards because that was normal.
We bought a house when we moved to Minnesota from Rhode Island because that's just what you do. Why throw money away renting? I was pregnant with our first child when we moved. We had no jobs. We put zero down on a 30 year conventional mortgage. I remember asking for Adam's family to co-sign the loan because it took a lot of work to get a mortgage company to give us a loan. What were they thinking loaning a couple of broke, unemployed, newly married kids a home loan? By God's grace we have never been late on a mortgage payment.A year or two later, we refinanced and took out a home equity line of credit (HELOC) on our home to get rid of the PMI and lower the interest rate. I used this HELOC like a credit card. When we weren't going to make our credit card minimum payment, I pulled from the HELOC. It also doubled as our emergency fund. If I had only known why a HELOC is not a good idea (especially if you are broke).
During our time in Minnesota, Adam attended seminary full-time and got an awesome job working at UPS. It was a part-time job with full family benefits, and he could attend seminary at the same time. He loved the relationships that he made at that job and remains friends today. He came home one night and said that this guy he heard on the radio really made sense talking about getting out of debt. His boss Deb put The Dave Ramsey Show on the radio while the warehouse workers were there unloading and washing the trucks. I replied, "Yeah, yeah. I am doing fine paying all our minimum payments. I don't want someone else telling me what to do. I got this."
Fast forward to March 2013. We had seen the promos for Financial Peace University (FPU) a couple times at Bethel Lutheran Church and also at Hope Lutheran Church. They had been holding classes for a couple years, but I kept thinking, "What a waste of $100. All he is going to say is 'Don't spend what you don't make'." The promo came again in February 2013. I remember exactly where we were sitting in church. It was the very back row on the right side. After the video, Ben and Jen got up to say that they were leading the class, and it was worth it. They said that it is possible for you to be debt free. I felt God's tug at my heart like they were speaking directly to me. I looked at Adam, and he looked at me, and we signed up.
The class was better than I had imagined. Dave did say, "Don't spend what you don't make," but the way he said it gave us hope. Dave, first of all, loves the Lord. That gave him a lot of credibility right off the bat for me. Through the nine week course he showed us the Seven Baby Steps to take control of our money. It was a bonding experience for us and the leaders and the class to share our stories and where we were in our financial lives. There were about 5 or 6 regular couples, and we were all on the journey together. FPU also had another surprising benefit. It brought Adam and I closer together as a couple. It was nine-weeks of date nights and marriage therapy classes. The communication that the FPU plan fosters really helps heal communication issues in the marriage relationship. It was definitely the best $100 we have spent.
So, we now had a plan, and we learned how to really budget. Since college, I had been keeping a "budget." Only it wasn't a budget, it was a Spending Tracker on an Excel spreadsheet. We learned that you need to have a budget meeting with your spouse, write down on paper where every dollar that you earn is to go, and cut up the credit cards. It wasn't a magic formula by any stretch of the imagination. There were ups and downs during the next 39 months. There were months that we "fell off the wagon" and didn't stop spending when the cash envelopes were empty. I held tightly to my credit card because it gave me cash back rewards, and I had had it since 1995. I had a GREAT FICO (I Love Debt) score.
In the Fall of 2013, Adam hurt his back at work and enrollment was down at the community college that I worked for. I went from teaching six sections of online chemistry per year to one section for the year. I was scared. I was calling and emailing friends about possible online teaching jobs I could apply for. I was pregnant with our sixth child, overwhelmed, sick, and tired.
Thankfully, workers' compensation continued while Adam was out of work. Also, we had a financial plan since March of that year. I often look back and praise God that He laid it on our hearts to take the class when He did. I was scared during that season, but not as panicked as I would have been if we didn't have a plan. Adam was terminated from his job due to injury, and he found a new job working for the local hospital in the business office. His co-workers really made his work easy to go to in the mornings. His three month temporary full-time job became a nine month temporary full-time job. Then, he applied for a Health Information Management System Analyst position in the same office and got the new full-time permanent job.
On my end, it was really satisfying to see the debt numbers drop. We started FPU with $43,000 in debt including school loans, a car loan, a credit card, a HELOC, and financed furniture. The debt snowball plan really worked and helped keep us motivated to attack the debt with gazelle intensity (Proverbs 6:5).
In January 2015 we took a step backwards with paying off the debt. From March 2014 we had been travelling everywhere in two vehicles (church, Inspiration Point Family Camp, Fargo, etc.) because our minivan only had seats for seven occupants. Because we always had to take two cars, we didn't go anywhere outside of Fergus Falls unless we needed to pick someone up from the airport in Fargo, and then someone would have to stay home.
When I first found out I was pregnant with Elizabeth, I researched minivans that could hold eight. The Toyota Sienna and the Honda Odyssey were the only two. I didn't want an SUV, and I really didn't want a 12-passenger van. In January 2015, I saw a Honda Odyssey that was perfect for us. After having a family meeting and explaining to the family that this would prolong getting out of debt, we bought the van with a loan from our credit union. I wanted to be a family. I wanted to drive to church together as a family. These were all understandable justifications, but they were still justifications for obtaining more chains of debt. Had we not done this, we would have been debt free one year later when we got our 2015 tax refund.
The final push for debt freedom was on. Our final consumer debt was the Odyssey. We still owed around $11,000. It looked like it would be two more years before we would be debt free and able to do a debt free scream and visit our extended family in New England.
After we were down to one debt, I got fired up again. I binge-listened to The Dave Ramsey Show podcasts, and started listening to his Christian radio counterpart Chris Brown on his show True Stewardship. Hearing God's Word proclaimed daily in Chris Brown's conversations with callers how it relates to life and money was refreshing to the soul. I use his daily broadcasts as part of my personal devotions. I have also recently caught up listening to every one of his podcasts since he began on June 1, 2015. My true desire for getting out of debt was shifting to be a good manager of "His blessings, His way, for His glory."
One of the questions that I have heard many callers ask Chris and Dave is, “How much should we tithe? Should we tithe gifts? Should we tithe on net or gross income?” I always shake my head because I know what they are going to say. “Tithing is not for God. He doesn’t need our money. It is for us. It develops a joyful, giving heart when we realize the money is not ours, but we are managers of His resources.”
Also, a passage Chris often quotes is Malachi 3:8-10, “Will a
mere mortal rob God? Yet you rob me. “But you ask, ‘How are we robbing you?’
“In tithes and offerings. You are under a curse—your whole nation—because you
are robbing me. Bring the whole tithe into the storehouse, that there may be
food in my house. Test me in this,” says the Lord Almighty, “and see if I will
not throw open the floodgates of heaven and pour out so much blessing that
there will not be room enough to store it.”
My family and I have always tithed at least 10%. I have always tithed 10%
of our net income, and then also tithed 10% of our tax refund figuring that
“took care of it.” I had the head
knowledge of tithing, but was missing the heart knowledge.
“You are a manager of His money.” That truth kept playing
through my head. After praying and
talking to my husband, we adjusted the budget to reflect tithing on our gross
income. Also, in order to “catch up”
from January 1, I calculated what we “owed” God.
Sunday, April 24th, I put a check for $560 in the offering plate at
church. It felt good. It felt right. It felt like worship.
Wednesday evening the kids and I were out in the front yard
playing; waiting for my husband to come home.
I saw one of my credit union managers pull up. Then, another behind her. Then, the rest in a truck behind her. They had balloons, a guy dressed up as a
debit card, and HUGE smiles on their faces.
They told us that we had won the monthly drawing for a
savings program I had signed up for. It
was $100!! We were so excited. Then, he continued, “But we wouldn’t have
come out here for just $100. You also
won the quarterly drawing of $500!!!” We
couldn’t believe it! We won $600 for
saving money!!
After they had left, I was reflecting on this praising the
Lord for the blessing He gave us. We
were going to put the whole thing on our last debt which was $10,629 at the time. Then, I remembered that just three days
earlier, we had freely, joyfully given “the whole tithe into the storehouse,” and God had
seen fit to “throw open the floodgates of heaven” to our family. Praise Jesus!! We were down to FOUR DIGITS!
One month later, we received a settlement check for Adam's back injury. This payment not only took care of our final debt on the minivan, but fully funded our emergency fund (Baby Step 3).
I told our credit union about our dream of being debt free and that with God's help it came true. My friend Holly that works there helped me surprise the kids telling them that not only are we debt free, but we are flying to New England to visit the grandparents and meet our four youngest cousins, in person!
Holly put up a debt free sign in the credit union's entry, bought balloons and a Dairy Queen ice cream cake (!) to help us celebrate. So, that was yesterday. Debt Free Friday I call it. Praise God from Whom ALL blessings flow!
Jesus said in Luke 16:10-13, “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? And if you have not been trustworthy with someone else’s property, who will give you property of your own?
"No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.”
With His grace we will continue to manage His blessings, His way, for His glory.
























