A testimony from Jen from Yard Sale Mommy
A year and a half ago I was having hot chocolate with a dear friend over Christmas break, and she told me about this guy named Dave Ramsey and about his Total Money Makeover. Stop using credit cards, pay cash for everything, never take out a loan, even for a car? We could never do that, I told her.
Three days later we drank the Dave Ramsey Kool-Aid. And I’m so glad we did. In six months, we fairly easily paid off all of our credit card debt and medical bills, built an emergency fund, started giving more to church, and got our debt down to nothing but two mortgages.
Wait… what? Yes, we had two mortgages — one more than we needed.
In 2003, my husband got a new job and we had to rent out our house instead of selling it because we stood to lose money on the sale. Fast forward eight years to 2011 — to sell the house now would mean losing even more money than before. We were underwater on this mortgage, not covering the payment and maintenance with the rent, and facing major repairs in the near future on our twelve-year-old home.
We needed to sell it. But in order to sell it, we had to save and we had to prepare to lose an unknown amount of money.
We put the house up for sale this past February. After three weeks, we were willing to lose five thousand dollars. After six weeks, we were willing to lose ten thousand dollars. After nine weeks, we finally got an offer: $20,000 below what we needed to break even.
I’m happy to say that we were able to bring $19,076.00 in cash to the closing of our upside down mortgage last month.
It took a year to save this much, but I got zealous about buying and reselling things on ebay, spent hours on MoneySavingMom.com learning how to better my grocery budget, and decided that a trip to Target should be an errand instead of an activity.
We cut back and did without and we were able to pay cash to get out of our upside down, underwater mortgage. It feels so good to be free from that extra mortgage!
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