WE'RE DEBT FREE!!!

"The borrower is slave to the lender" Proverbs 22:7

We are thrilled, thrilled, thrilled to have reached a HUGE goal for our family! First and foremost, this post is not meant to brag, but to give total glory to Jesus for the work He's done in our hearts, our lives, and our finances over the last few years.

So let me start by filling you in on the details. Early on in our marriage, Toby and I wanted to take some sort of Christian finance course for years - be it Dave Ramsey, Crown Financial, whatever. We just wanted to learn truth in this area and operate our finances from Biblical principles. At this time we were both working during the day and I was either working late nights for tax season or spending hours on end at the library in preparation for the CPA exam. So the timing just never really worked out...the times these classes were offered were not "convenient" for us. I've since learned, that we do what we really want to do and honestly, we just didn't make this as big of a priority as we should have earlier in our marriage.

Fast forward a few years...Toby got transferred to Tennessee and I quit my job to stay home with sweet Haley. Out of desperation for adult interaction, I started attending a moms group at a local church in Knoxville. While I never really clicked with any of the moms, other than the two that invited me, I still felt like I was suppose to go. Turns out that during my second semester in the group the course "Financial Peace University" by Dave Ramsey was offered as a choice. I was thrilled! Now, this was a "bare bones" version because they didn't charge the big fee (good thing, because we were broke) and we didn't get the materials, but we would watch the videos together each week. While Toby and I wanted to go through it together, I figured this was better than nothing, so I jumped on the opportunity. After two or three weeks, every one else in the class seemed to disappear and I was left alone. Several times I was left to watch the video...alone as even the leader went off to do other things. I didn't mind...at least I was getting exposure to this awesome information. Anyway, after two weeks of solitude, the leader asked me, "Do you just want to take the DVDs home a few at a time and watch them with your husband?" What?!? I was floored! So over the next few months, Toby and I watched the entire 13 lesson program...together, in our own time, with a chance to discuss it afterward. We were so grateful for this miracle!

Dave talks a lot about being debt free and now we can totally understand his point. Debt puts you in bondage and ties up your resources. It keeps you from being able to do other things for His kingdom with your finances. For us, we now know that we will serve in the ministry at some point, and God is positioning us to live "comfortably" with little or no income.

So we finished the DVDs in the fall of 2009 and took a good hard look at our financial situation. For the sake of giving God ALL the glory, I will go against all cultural norms and give you real numbers. At the close of 2009, here is what we were faced with:

$ 195,000 - mortgage on our TN house
$ 77,800 - mortgage on our vacant AL rental house
$ 8,300 - Toby's student loans
$ 19,400 - Carey's student loans
=$ 300,500 - total debt

Our monthly debt payments were as follows:
$ 1,400 - mortgage on our TN house
$ 918 - mortgage on our AL rental house
$ 82 - Toby's student loans
$ 173 - Carey's student loans
=$2,573 - total cash going out of our hands to the debtors each month

Now, you can do the math here. Toby had a great job, but once you tack on groceries, utilities, gasoline, etc, etc, etc...things were tight to say the least! However, as hard as those days were, God forced us to learn some really hard lessons. Lessons about stewarding His money well, lessons that we will carry for the rest of our lives. In those days, the choice laid out before me was A - get a job and put Haley in daycare or B - figure out how to stretch a buck. Since it was my heart's desire to be home with my babies, I got busy stretching away. We put Haley in cloth diapers, I made all of her baby food, I learned from a friend how to make my own laundry detergent, I learned all about cutting coupons and planning our meals around what was on sale. We rarely went out to eat and if we did it was to the cheap Mexican place where they would serve us endless free chips and salsa and we could split a $5 quesadilla. Most lunch dates consisted of sandwiches from home in the back end of my 4Runner, backed up to the river. Honestly, those are some of my favorite memories from Tennessee. We also learned that life went along just fine without fancy dinners out, new clothes, luxury cars, or extravagant toys for our daughter. God had blessed us with an incredible amount and we were learning that the "American dream" is not all it's cracked up to be. We were finally content with what we had and were able to take stock of things and start digging out from under our debt. [See the $ Savers tab for details.]

So, how did we get from there to here? Yes, we cut back tremendously in those first few months, but the monumental changes are all tied to the miracles God worked in moving us back to Alabama. In February 2010, God told Toby to quit his job, move us back to Alabama, attend "seminary" and live in our little vacant house. If you haven't heard this story, please take the time to read it...God is SO good! Anyway, after months of no job prospects in Mobile, one finally landed on the scene. With it came full relocation, additional funds for moving and temporary housing expenses, and they bought our TN house from us...for what we paid for it, even though it had declined in value during the two years we lived there. This was our starting point. So that takes care of our TN mortgage and we were able to put some of the extra moving funds toward Toby's student loans and knock them out. That alone was a huge relief...to finally have some breathing room in our finances!

Once we moved into our tiny, vacant rental house (that conveniently God was holding on to for us...haha, the joke's on us!) we refinanced the mortgage to get out from under PMI, cut the loan term to 15 years instead of 30, and significantly reduce the interest rate. Even with reducing the life of the loan, our mortgage payment now is still lower than it was before.

Over the course of the nine months that we've been in Mobile, we have been slowly chipping away at my student loans. Our pastors, John and Tracy, have said a million times, "You can't out-give God." One of the biggest things I admire about Toby is the stance he took at the very beginning of our marriage. He said, "No matter how tough things get, we will always give our tithe." And so we have. Faithfully, with each paycheck we have cheerfully turned over to God what belongs to Him...even though there were days I would day dream about how far that money would go, from my perspective anyway. We kept up our end of the deal when we moved to Mobile and with our first taste of financial freedom we began to offer above our tithe...a huge joy for my heart! Well, I think John and Tracy are right. For months now we have been receiving random checks in the mail...a refund on a utility bill from TN, or an overpayment due to a miscalculation on the closing of our refinance, or a dividend check I hadn't thought about...it seemed like the money just kept coming in! It was crazy! Now, nothing was huge...$40 here, $70 there, but those things add up and we knew where they were coming from. So all of those things combined with Toby's income and freedom from not paying other debtors each month, my student loan balance was falling quickly and yesterday I made the last payment...the payoff amount! It was a day that I never thought I'd see!

So, we still have our mortgage on our little Alabama house, but it's next in line. Again, I tell you all of this not to brag or boast of any wonderful thing we've done, but to point all glory to Jesus! He is the one who put the resources in our hands. He is the one who changed our hearts. He is the one who provided the new, amazing job. He is the one who provided the resources to give us the freedom He wants us to have. He is the one who paid off over $200,000 in debt in 18 months. We are thrilled to have this weight off of our shoulders, but even more so to be in a position to serve Him in whatever capacity He asks because we are not bound by these obligations anymore!

You can do this too. I promise, it can be done! But you must be intentional and you must seek His help. He will guide your heart and give you wisdom to walk it out. If you've overcome this hurdle, I would love to hear your story. Please feel free to post a comment or send me an email at soakinginlife@gmail.com.