Our Journey to Becoming Debt Free
Growing up, I was taught that paying off a house was something no one could realistically achieve. The belief from my family and friends was that you’d always need a loan from the bank, and you’d just keep making payments until you passed away. We grew up poor, and financial struggles felt like an unbreakable cycle.
In 2011, I faced a financial crisis that could have easily derailed me. I was $5,000 to $7,000 in debt after totaling a car in an accident. The insurance didn’t cover the remaining loan amount, leaving me with an unplanned financial burden. At the time, I considered filing for bankruptcy. I had people advising me to do so, with arguments like, “The banks have more money than you; it won’t matter.” It seemed like the easiest way out.
Thankfully, I turned to my brother, who had gone through bankruptcy himself. He gave me some of the best advice I’ve ever received: “Don’t file. Work through it.” He shared his experiences, the lessons he learned, and why it was worth the effort to avoid bankruptcy. Encouraged by his words, I decided to tackle the debt head-on.
At the time, I was earning just $11 an hour, but I worked 70 to 80 hours a week for four months to pay off the debt entirely. It was insanely tough, but it was worth every bit of effort. That experience became a turning point in my life. I discovered Dave Ramsey’s financial principles, which further helped me get on a path toward becoming debt-free. Through hard work, focus, and sacrifice, I paid off all my credit card debt, car loans, student loans, and more. My wife and I even managed to pay off her student loans within two years after she graduated college. The weight of debt was lifted, and the freedom we felt was indescribable.
We did go into debt again in order to purchase a home. This journey was challenging as well. After renting an apartment for four years, we took out a mortgage for $260,000, putting down only $7,000. Because we didn’t have the 20% needed to eliminate private mortgage insurance (PMI), we ended up paying more in interest and additional PMI costs. However, we worked incredibly hard to pay off the PMI early. While we initially had excellent interest rates, we decided to refinance after a year to a 15-year mortgage and gained an extra point in the process.
Having a mortgage isn’t necessarily a bad thing. If someone has to carry debt, a mortgage is one of the better types to have. However, I highly encourage anyone considering homeownership to prepare for the reality that all repairs and maintenance will be their responsibility. Additionally, eliminating PMI as soon as possible is critical to avoid unnecessary extra costs. I also recommend opting for a 15-year mortgage to minimize wasted money on interest. Finally, avoid the temptation to impress others with gadgets, widgets, or unnecessary upgrades that could lead to more debt.
In 2020, I made one of the hardest decisions of my life: I left a job I absolutely loved. My wife and I worked tirelessly to double our income during this period. We pushed ourselves, made sacrifices, and stayed committed to our financial goals. The journey wasn’t easy, but it was worth it.
One Bible verse that weighed heavily on me during this journey was Proverbs 22:7: “The borrower is slave to the lender.” I could truly feel the weight of that truth in my life. Living under the shadow of debt felt like servitude, and I was determined to break free.
Throughout this journey, we made sure never to stop giving or tithing. I often heard the saying, “You can’t out-give God,” and while I’m not sure if that’s directly biblical, it felt true to me. Trusting in God and continuing to give even during tight times seemed to bless us in ways I couldn’t always explain. It strengthened my faith and gave me a sense of purpose beyond just paying off debt.
Another verse that resonated deeply was Hebrews 12:11 (NLT): “No discipline is enjoyable while it is happening—it’s painful! But afterward there will be a peaceful harvest of right living for those who are trained in this way.” This verse reminded me that the sacrifices and discipline we practiced were not in vain.
Some of the Sacrifices We Made
This journey wasn’t without sacrifice. When we moved into our house in 2018, we had wonderful neighbors. I enjoyed spending time with them and building friendships, but I often had to choose work over socializing. I gave up countless opportunities to hang out with friends because I was focused on securing our family’s financial future. While I sometimes regret those missed moments and relationships, I knew that every choice was made with the bigger picture in mind.
One of the biggest sacrifices we made during this time was putting off having children until we were in a better financial position. This was primarily due to my focus on paying off student loan debt and securing a home of our own. I didn’t need the house to be paid off entirely, but I wanted to ensure we were in a good place financially before starting a family. I grew up really poor and I didn’t want to burden my family with a lot of the struggles we had growing up.
At the time, we were also searching for a full-time church. We eventually found one, but we lost some relationships along the way when we didn’t stay in contact with certain people. Additionally, we had to make smart decisions about which events to attend, when to eat out, and what to buy. My car, which has over 255,000 miles on it, broke down many times during this period. Instead of giving in to the temptation of taking on new debt for a brand-new car, we repaired it step by step. Each small fix helped us avoid additional debt and kept us on track toward our financial goals.
It wasn’t easy to prioritize financial goals over personal connections and comfort, but it’s a decision I stand by. Paying off our house this past September was something I had dreamed about for years. Achieving this goal felt like breaking a generational cycle of financial hardship. I hope to mend and rebuild relationships in the future, but for now, I’m proud of what we accomplished as a family.
Lessons Learned
- Seek Advice from Trusted Sources: My brother’s advice and experience helped me avoid bankruptcy and tackle my debt. Don’t be afraid to reach out to people who have faced similar challenges.
- Work Hard, but Work Smart: During those grueling months, I learned that hard work paired with a clear plan makes a world of difference. Dave Ramsey’s principles gave me the roadmap I needed.
- Focus on the Long-Term Goal: Sacrifices in the short term can lead to tremendous rewards in the long term. It’s hard, but the freedom that comes with being debt-free is priceless.
- Financial Freedom is a Journey, Not an Overnight Fix: Becoming debt-free takes time, commitment, and persistence. But every small victory adds up.
Why It’s All Worth It
Paying off our house has given us a sense of peace and freedom that’s hard to describe. We no longer have the weight of debt hanging over us, and that has opened doors to new opportunities. I feel a deep sense of pride knowing that we accomplished something I was told was impossible.
To anyone reading this who feels trapped by debt: know that there is a way out. It won’t be easy, but it’s worth it. Set a plan, make sacrifices, and stay the course. The freedom you gain will be life-changing—for you and for generations to come.
If I could share one takeaway from this journey, it’s this: You don’t have to accept the limitations others place on you. With determination, hard work, and the right guidance, you can achieve what once seemed impossible.
As Philippians 4:13 reminds us, “I can do all things through Christ who strengthens me.” That strength carried me through the darkest and most challenging moments of this journey, and it can carry you too.
