Guest post from Kim of Kimz Kitchen
My family and I are avid followers of MoneySavingMom.com and Dave Ramsey. When my husband and I graduated from college, the only debt we had were some (relatively) small student loans to pay off. Our plan was to knock them out before we started adding children to our family.
Things were going well, and though we got pregnant before they were paid off, we had every intention of being debt-free before our first daughter arrived.
Then real life happened.
A deer hit our car, and even with good insurance, we had to replace our car. Because it wasn’t worth much to begin with, and it was our only vehicle, we had to take out a small loan to pay for another used one. This put our debt payoff on hold.
Then our daughter was born with major health issues — which meant big medical bills to pay.
A couple years later, my husband was out of work for several months, so our debt snowball was put on hold again and I sold everything I could on Craigslist and Ebay. MoneySavingMom.com was such a huge help to us during this tough time.
The next few years brought on more high deductibles that had to be paid each year — our daughter was bitten by a copperhead one year, we had another beautiful little girl the next, we had three pregnancies that ended tragically (and with big medical bills), and then my husband was diagnosed with a large (benign) brain tumor that needed an eleven-hour surgery to remove.
So, while our debt was small and easily manageable in the beginning, we were being stalled every year by big bills that had to be paid first. I would hear the stories of others who were paying off smaller amounts of debt on smaller incomes in a quarter of the time we were and I would get SO discouraged!
Some of you may be in a similar situation to us. You have every intent to dump your debt quickly, but life happens, and sometimes it hits harder than you can imagine.
If you can relate, here are a 5 tips that helped us stay focused (and kept us from growing our debt):
1. We always paid ourselves first and made sure our $1,000 emergency fund was available for short term emergencies. This came in handy when our hot water heater started smoking and a pipe burst in our guest bathroom!
2. We started using the envelope system to pay cash for budget busters like groceries, eating out, and date nights. Anything left over went straight to our current outstanding bill.
3. We used coupons to save money on our grocery bills and played the drugstore game for toiletry items. CVS was our favorite. Many times we were getting our milk and diapers free! We would even use extra free items to make up small gift baskets for gifts for our families.
4. We paid our bills first to avoid more debt. Whenever the big medical bills came due, we put our debt snowball on hold until they were paid. In a sense, we were cash flowing those medical bills, using our debt snowball money to pay for them. While it was hard to lose the steam on my student loan, it was still something that had to be done, and we were grateful to have the means to pay them.
5. We simplified our belongings and made money by selling our excess belongings on our local Facebook Yardsale page, Craigslist, and eBay.
We stuck to our goal, and the day before my ten-year college reunion, we paid the final payment to my student loan!
While it took MUCH longer than I had anticipated, it was still worth the effort. Plus, the lessons we learned about saving, living on less, and paying cash for everything have been invaluable.
Kim is wife to a brain tumor survivor and mom to two girls here and three kiddos in Heaven. She blogs about her adventures in homeschooling, cooking, and helping young children deal with sibling loss at her Kimz Kitchen.
Prudence Debtfree says
My husband and I have hit some roadblocks to our debt repayment in the last several months. We paid for a new roof ($10,000). Our big tree had to be cut down ($2,000). Our dog had bladder stones. ($4,000). We’ve been very frustrated, but reading your post has made me realize we have nothing to complain about! You’ve been through so many trials. Your victory in spite of it all is a real inspiration to those of us still trying to get out of debt. Here’s wishing you and your family all the best.
Marilee says
Thanks for helping me find a focus. I’m currently digging my way out of a debt snowball. I was having a hard time focusing on what’s most important and feeling guilty for not paying on my school bill, when the electrics due. I love how positive you are 🙂 inspires me to not give up!
debbie says
Thank you. This was really nice to read. We are going through a tight time and it is my goal for the new year to get rid of these debts but things keep coming up. I have tried selling things and will use some of your ideas.
Suzette says
I am so inspired by you! Praise Jesus that you have shared this! And blessings to you!
Sarah says
Thank you SO much for this post. This was so encouraging to hear because I have followed Moneysavingmom for YEARS now & we also follow Dave Ramsey’s plan. We have been stuck on Baby Step#2 for about 4.5 years now!!
We HAVE made progress (all credit cards are paid off & both our vehicles are paid in full) but we still have my husband’s school loans (taken out before we knew any better) and we keep having medical bills: -My son broke his collar bone the day before his insurance kicked in! We had to pay it all out of pocket. -Then my husband had an emergency appendectomy.
-After that I had a procedure.
Over the past year we have also had some big things go out at our house: erator, AC unit, & water heater. Thankfully with our emergency fund we kept paying for all that in cash.
Right now my husband (a roofer) is not working due to the weather, which is also tough.
We do have periods where we get discouraged & frustrated because life keeps happening but we keep repeating “slow and steady wins the race” & my husband said even if we take two steps forward and then one step back, we will still reach our goal eventually!
Our goal is to be debt free by the end of 2014 & God willing THIS will be our year! 🙂
Carol MacLean says
I just wanted to say thank you for the inspiring story. Your family
has been thorough so much and you are still so positive. My son
has student loan debt and I will encourage him to use some of your tips. I like the tip of adding up what you have already
paid off, very encouraging. May God bless your husband with
a speedy recovery
Grace says
I *love* this post! This sounds like us almost to a t. Started with 5k in student loans and we are up to 22k in cc debt 🙁 that’s roughly a yr pay for us. While I’m so excited for the people who become debt free (and I hope to be there) there is nothing left to cut, nothing left to sell (I currently listed the last yesterday) and no more that we are able to work (I am self employed and 3 small kids hubby has been picking up all the overtime he can….sometimes not getting a day off). I am have noticed that Dave’s solution to everything is up the income…and my hubby has all but given up at we will be out of debt every again….we were married 5 yrs ago with no debt. But on a more positive note while I was in the library putting a reserve on crystals new book (the wait list is loooong lol) I found the first one and it is *fabulous* and super encouraging (but like any book I feel guilty reading it that there is something more constructive i should be doing
AMY says
Congratulations Kim. Good story and great job staying focused. Life does seem to get in the way doesn’t it?? We are trying to get rid of debt and while thinking we were getting ahead we end up falling behind. I quit my full time job of 3 years working 60 plus hours a week to be home with my family for once in my life. We are expecting our 2nd child in July. (our daughter will be 10) Focusing on life and along comes another mistake…. we took money out of my husband’s 401K to pay off credit card debt, and lots of other debt, etc. It felt sooooo great not having the stress of having constant bills coming in every month. (which allowed me to be at home) And surprise…….. we now have 16K in debt we owe the IRS for taking money from the 401K. I am in panic mode!!!! With one income, a hefty mortgage, other bills, and a 2nd child coming in July (and out of pocket medical expenses do to our wonderful new 4K deductible we must meet) I am beyond stressed on what to do!!! I have listed things on FB yard sale and craigslist to try and sell some things to help. I do swag bucks to earn diapers to stock pile. I really don’t want to have to return to work. (who is going to hire a pregnant women do in 5 mos.)
After reading your story I feel a sense of some relief that we are not the only ones that fall behind in our game plan and I pray that it will work out!
I love reading Money Saving Mom and the stories like yours that are inspiring when life seems to be failing. Thanks for sharing your story and congratulations on your successful journey!
Amy
Barbara says
What a trooper you have been through all this. I can relate to your frustration, with every time you try to get ahead something else happens. My husband have me have to rely on our tax return every year when it rolls around to get rid of the previous debt and never get ahead. Plus I’m in school and soon to be done but I can’t seem to find a job to pay it down so all it’s doing is racking up. This has become my deepest worry that I wake up at night worrying about it. I though of just converting the two loans to just one but I have read that it hurts your credit by doing that. I can really relate to what you where talking about and it’s great that you are getting ahead. The feeling of accomplishment or feeling of the stress being lifted is a great thing. Good luck and hope your husband is recovering ok, that too takes a while to over come. Take care!:) Barbara ([email protected]
Jenny says
We have had a very similar experience and are still in the middle of paying off our debt snowball. Did you do a debt free scream? I would love to hear it!
Jenny
rebecca says
Thank You..Its been hard or mysel and family..but we are hanging in there..good luck in the future..
May the best day of your ppast be the worst day of your future…..
Denise says
Thank you for sharing a hard version of paying off debt. Sometimes I read stories that are almost “too good to be true” and it is nice to read a story I can relate to. I have massive medical debt from a chronic pain condition and ensuing surgery 2 1/2 years ago 🙁 Then we moved to a new state for my husband’s new job a little over a month ago… Moving is expensive and we are just now starting to get back on track with paying down debt again. Thanks for the encouragement and the reminder that you don’t always have to be paying extra toward debt to be on track with your plan!
Jessica Valentino says
I really appreciated reading about your story and reading the comments as well. Everyone has a different path and it can be so frustrating when goals don’t go as planned. I think your story really demonstrates how learning to budget and be a wise steward of your money can really help through those hard times. Imagine how hard all of those trials would have hit you financially if you hadn’t learned how manage your money. What if you were also way over your head on consumer spending and debt and unable to manage and follow a budget. I think the fact that you were able to handle all of those expenses and emergencies is just as remarkable and laudable as being able to quickly pay off all of your student loans. Those are accomplishments worth celebrating!
Jen says
Thank you for sharing. My family has a very similar story right down to having three angel babies waiting for us on the other side. We were debt free aside from student loans when we took the plunge on a great mortgage. Less than a month after moving in bad luck snowballed into more than a year of misery. It’s nice to know there are others who can smile and not stay mired in despair.
Cherise says
Your perseverance and courage are really inspirational. Blessings to your family!
Deb says
Thankfully, I cannot relate to most of what you have written! I do agree with something you have written in a comment: becoming debt free can become a god, of sorts, a.k.a. an idol. Debt, while it is not a good thing to have, is not a sin. God wants us to look to Him to meet our needs. We must trust in Him, and not the accounting ledger!
Malenksha says
Wow, this was so encouraging to me! We’ve spent 15 years digging ourselves out of one medical emergency after another. The student loan was paid off before marriage or kids, but two children with special needs and a husband with inherited medical issues have just decimated our financial hopes. I know no one else who has faced what we have and sometimes their comments (“Oh, of course *smart* people would have money set aside for this”) sting… not many people I know would have upwards of $200K just sitting around in case something happens. We’ve never lived “well”… no vacations, no eating out, no cable, everything bought used, one car, etc. But still each month it often feels like that song “another day older and deeper in debt”. So to know that others have faced this — and with more grace than I feel some days — sure is encouraging. Just knowing we’re not alone will help give me the grit to keep going. So thank you for sharing. You have no idea how much I needed to hears this right now!
Kim says
Oh yes. Sometimes others’ words of success can sting sometimes for me too. 🙁 Medical bills are so hard sometimes. They are a necessary evil it feels at times. And I don’t always have a graceful smile for every moment. But my God has given me the grace for every moment to keep breathing and to keep doing the right things. No criticism here – just a “hang in there” and “you will have what you truly need” and my heart gets it. For whatever that’s worth. (Sadly, not real $$). 🙁
Kathy says
Thank you for a very encouraging story. The problem we face is a fixed limited income. We are trying to fund our emergency fund but every month despite our best efforts, something unexpected occurs that takes that money before it makes it to the fund. I am talking necessities here, such as an unexpected Dr. Bill or medication, etc. We are disabled so unable to take on a job. Do you have any suggestions for folks in our situations?
Kim says
Kathy – this is a tough situation for sure. It sounds like you are using your extra cash for unexpected small emergencies even though it hasn’t gone into the special account yet? So, really – you’re doing fantastic. One thing I did to help me stay motivated when we couldn’t make large lump sum payments was to divide the total amount in $50 increments. When the bill was $10,000, that was 200 $50 payments. So I’d hold on to cash until I got to $50, then I’d make a payments. That brought me down to only needing 199 more $50’s. Call it psychological, but it helped me.
Maybe breaking down your $1000 into 20 $50’s would help you stay motivated when that may be all you can scrape together?
Kristin says
Oh man, I so needed this. We had everything except our student loans and our house paid off one year ago. Then we managed to rack up $70k in hospital bills in the space of three months. Thank God we have health insurance, but we still had a $5k deductible to pay off and that’s nearly paid for. We were so discouraged, but we’re getting back on track and using cash for our groceries and gasoline. My husband’s pay was even cut by $200/month and I guess The Lord is just blessing us because we’ve been able to really stretch our dollars lately. I still had $71 left over last week after everything was paid for. Amazing.
Kim says
It sounds like you are fighting back, Kristin! We lived for nine years with one vehicle, no cable, etc. I remember finding a $20 bill in an old coat pocket from the winter before. I made an extra $20 payment on my loan and dropped it off at the bank the next day. My husband laughed at me sometimes even. 🙂 But in my mind, I think, “wow! If I hadn’t made all those little $20 and $30 payments, we’d still be paying right now!”
Mona says
Thank you for sharing your story! We are so close to debt free and then we got an unexpected surprise when I did our taxes. Needless to say, we won’t be debt free as soon as I had hoped. It can be so discouraging! I’ve been in a funk over it and this post was perfectly timed.
Suzanne says
I went to your blog to read more about debt repayment, but I left with so much more than that.
Your story and your heart are inspiring. You and your family have been through so much, but you are still living life with joy and grace. Reading about how God has strengthened you is a great reminder to me that He can carry me through the rough times in my life as well.
Thank you for sharing your precious Kyle with your readers. He and your family have blessed me today.
Jessica says
Wow. Just wow! You’ve been through a lot yet your attitude is such an inspiration.
MaryBeth says
I love this story!! We are working our way out of some major student loan debt and feel like it is never ending, but we have faced many unexpected car repairs, a surgery that wasn’t covered by insurance, and managed to cash flow all of them. I think I’m going to make a spreadsheet of things we cash flowed as well as debt we’ve paid off to realize that even if our debt isn’t going down as fast as we’d like we haven’t had to add any debt! Being intentional is still working for us!
Melissa says
I am so encouraged to hear your story. We have had a challenging time on the road to being debt free in the last couple of years with a job loss, 3 miscarriages, a tubal pregnancy that ruptured requiring emergency surgery, our 4 year old was diagnosed with cancer, I lost a grandparent, and we had to move temporarily and take long term leave for my sons treatments. With so many challenges, it has been very discouraging to want to pay off student loans and be unable to do as much as we’d like due to other expenses. It’s great to hear that someone else has been there and made it in spite of it all!
Kim says
Oh Melissa, you get it don’t you. I’m so so so sorry. And yes – you can do it. One thing that helped me mentally stay encouraged was instead of saying “we’ve only paid $xxx in student debt in 10 years!” I’d add up all the car loans, the medical bills, the grad school years we paid cash for and the small student loan and say, “we’ve paid off $XXxxx in debt in ten years!!” While I wasn’t counting those things as “debt” – it was big bills that we were paying – and had we chosen to keep on the student loan, they would have been debts. It’s all a matter of semantics really, but at least when we finally get that debt free scream with Dave Ramsay it’ll sound better. LOL!!
All that said. My heart truly goes out to you. I get it totally. May this year be one of victories financially, physically, and spiritually.
ClareC. says
Kim,
Thanks so much for your story. Sometimes it seems all you read about is people whose financial plans move right along a preplanned path. How inspiring to hear a story of setbacks that did not lead to a derailment. Blessings to you and your family.
Kim says
Thanks Clare for your kind words. These comments have been so encouraging to me today!
Jessica says
Thank you Kim for sharing. It was even encouraging to read the comments that others wrote and your response. My husband and I started our marriage with student loans and right away he got medical bills. We were similar to your story that we had intensions of paying it all off before kids but God had other plans. We are trying again to get back on track paying off debt and the emergency fund again after getting side tracked. Thanks for the encouraging words!
Megan says
Thank you so much for this post. I got some not so pleasant medical news this week; even with a high deductible I’m grateful insurnace kicked in this month. While I’m sorry to hear what you went through, it makes me feel like having a setback like this can be normal and does happen to other people. We were starting to make good progress after a year of unemployment and we’re hoping to get a few things paid off and starting to save more. But we’ll do the best we can. Your post gives me a lot of hope, which is something my husband and I could use rig now. Thank you for that.
Sarah Mueller says
What an inspiring story you have! It must have been tempting to get frustrated and lose steam on your goals, but it sounds like you really stayed focused, even when you kept having setback after setback. I’m sure the discipline you’ve developed throughout your journey will serve you well!
Kendra says
Excellent words of encouragement in this post. I am sorry you’ve been through so much but grateful you are so willing to share and inspire others. I am about to venture into the homeschooling/down to one income phase in our lives and I pray that God grants me the wisdom to tackle our financial situations like he did with you. 🙂 We are doing some of the things you suggested already! Great post!
Jennifer says
Thanks for sharing your story of perseverance thru trials. Very encouraging!
Michelle says
Thanks for this post. I am new on the road to becoming debt free. I love reading success stories. Although my journey has just begun, it is great to read about those who make it to their goal. It keeps me on the straight and narrow with saving, planning, and paying down. THANKS AGAIN!
Kim says
Go get ’em Michelle!
Katie says
Thank you for this article. I found it to be one of the best I’ve read on MSM. We also have a high deductible ($5000) through my employer and our son was born with special needs in 2012. I’ve been struggling with contentment as it seems every one around me has amazing insurance with small or zero deductible. It has really put me in a funk lately. Thank you for reminding me there are others out there like us and that we can still gain ground despite all the medical bills.
Kim says
Katie – yes! Hang in there! I promise you aren’t alone! I know the journey with medical issues is so long and arduous. (And now with follow up MRI’s every year, we’ll be paying out deductible every year now at least for the next five years.) we still have one more small student loan, but we’re determined to finally get there.
Sometimes being debt free can become a “god” of
Sorts that we try to almost worship…and sacrifice all other things for – which is good for a time when most can become debt free. But when it drags on and on, other things have to take higher priority – like your family.
I say all that from my own learning experiences. I wish you the best of health moving forward.
jessica says
In our state children with special needs qualify for a special insurance program through the state called Katie Beckett. It is not income based. Children qualify based on their developmental and medical needs. Families are allowed to carry both this insurance and private insurance. The main benefit is alleviating the cost of deductibles and co-pays. I am sure you have looked into this and your state probably does not have it….but just thought I would mention it.
Emma says
Yes! In some states it’s called the Deeming Waiver, TEFRA, or even just “the waiver.” I speak from personal experience when I say it’s absolutely worth seeking out.
Tracy says
In many states you can have your employer put money in a Health Savings Account. This money is taken out usually before taxes and is able to be used toward your deductible.
Jessica Claire says
Our son was also born with special needs and has had well over 4 million dollars worth of procedures, medical supplies, hospital stays, and dr’s appointments in the almost 3 years since he was born. It was all covered under our special insurance. I am so so thankful for it! In Michigan it was called Childrens Special Health Care Services (that is where he was born). We just move to Tennessee 6 months ago and it is called Childrens Special Services here. I was told that each state this program and it is just called something a little different depending on where you are. The hospital was able to sign us up when our son was first born. I can’t really say enough good things about it! Make sure to check it out. 🙂
Charlene says
I noticed your comment about your husband’s brain tumor and surgery. We went through something that sounds similar, last year. I would love to connect with you. I didn’t see any contact info on your site though, although I may have missed it. You have a very inspiring story, but I know it has been tough!
Kim says
Oh Charlene – I’m so sorry. I’d love to connect! Find me on my Facebook page – http://www.Facebook.com/kimzkitchen
And send me a quick message – I’d love to hear your story.
Kristi says
It is easy to get derailed when we have set backs. Great job staying focused on your goal and being committed to the process. So many can find excuses to stop and you just kept your eye on the prize! Good for you!
Meg says
Thank you so much for sharing. This was really inspirational. My family has had similar seemingly random struggles one on top of the other. Struggling with all of these burdens that others haven’t/aren’t dealing with can make the journey very lonely. It is nice to hear other people who worked and succeeded against great odds.
Kim says
Meg – I’m glad it was encouraging. Your comment was encouraging as well. It really makes you realize what is important in life, doesn’t it? Sometimes being debt free isn’t it. I’m glad we’ve stayed focused and persevered. But only by Gods grace are we where we are and not completely despondent by our seemingly slow progress.
Melanie says
This is an awesome example of perseverance!!! Thanks for keeping on keeping on and then being willing to share your story!
Kim says
Thanks, Melanie. My hope is that others who are trudging ahead doing the “right” things will be able to persevere as well – knowing that all debt payoff stories aren’t as “easy” sounding as others… Thanks for your encouragement. 🙂
K.M. says
Ditto; amen; thanks for this post. It does get discouraging…but not impossible! <3
Diane says
Wow, your family has been through a lot. Kudos to you for remaining positive and working hard to overcome these challenges! I hope future years will be kinder to your family.
Kim says
Thanks, Diane! We are so grateful to be where we are – looking back, it sure has been a rocky ride! But by God’s grace, we’re still smiling most days on this side! 🙂