Somewhere to talk through my feelings, instead of eating through them.
The Year of Debt and The Year of Paying it Off
Posted 02-22-2009 at 07:13 PM by Dia Minha
The year of debt, started around the birth of our 5th child in July of 2006. We had terrible insurance. She cost us over $4,000 and at the time we were paying approximately $600 a month in insurance premiums . A couple of months later our stove blew up, literally. Then, the garage door fell down, again, literally. Next it was the washing machine and then the dishwasher. During all this we were trying to put in a fence, grass, and retaining walls for the yard. Then to end the year we had another little baby, in July of 2007, that again cost us around $4,000. And as my oldest son put it, we didn’t even get to bring him home. We were over charged severely for his delivery, but the more charges we fought the less the insurance paid and the more we had to fork out, so we quit fighting.
Anyway, in just a years period of time we had accumulated over $10,000 in debt. I was feeling picked on and deprived. It wasn’t like we had spent the money on new carpet, furniture, vacations or a flat screen tv. Everything was in line with being a necessity. Of course I beat myself up over the fact that we could have “lived” without a new garage door and a dishwasher. We could have moved in everything from the garage into the basement and kept our vehicles locked and just had the broken door removed, because it was impossible to lift up. And of course we could have washed our dirty dishes by hand. We had some money in savings, but not enough to cover so many unexpected expenses in such a short amount of time.
So there we were, with $10,000 in credit card debt and in the middle of trying to put in a yard and feeling the desperate need to finish our basement. Toward the end of the year 2007, we sat down and decided that it had to stop. The year of 2008, was going to be our year to get rid of our credit card debt. If we were going to get our finances in order, we were going to have to come up with a plan. Our plan began with a budget and a goal to cut back on all unnecessary spending. This included things such as a new tv even if the old one went out (it was on its way out, but it made it) and we even included that one car was a necessity, two was a want. So if the car went out it was done, but the van needed to be fixed.
I also made a year birthday plan. The kids all got quilts for their birthdays, because that is what they needed. No toys or other items were given for their birthdays during that year. It also just happened to be a good year, because nobody was going to have a party that year. We also meant that the yard and basement were going to have to wait for another year. We also cut way back on Christmas. Almost half as a matter of fact. We did push back our last payment, because we decided it was more important to support as many worthy causes as we could. So, even though we spent less on ourselves, we ending up spending the same, because we gave so much more.
The last thing we did was recommit to shopping at Macey’s. It was something we had talked about first thing in our marriage, but I had gotten caught up in the $.50 boxes of cereal at Albertsons and buying some regular grocery items at Wal-Mart, because they were cheaper. So we recommitted to buying all our grocery items at Macey’s, because they were closed on Sunday. Even if it meant spending more on groceries. We continued to pay an honest tithe and a generous fast offering. We worked out our budget in such a way that we had as much money as we could to put on the credit card. The goal being to pay it off before the end of the year. The interesting thing being, I followed the budget very well, for about 4 months. Then some things got out of line and I didn’t do so good with it for the rest of the year. However, I believe that the one thing that pulled us through and made it possible was the commitment to shop at Macey’s. That was the only thing that changed that year, from any other year we had tried to pay down debt. I truly believe Heavenly Father blessed us to make all this possible.
Anyway, after a year of putting almost everything on hold, we made it. Not only did we pay off our credit card, but we paid off our van three months early. I say almost everything, because we did turn a funeral down in Arizona into a family vacation and we did find ourselves making a few unnecessary purchases, but all in all we went without a lot to make it work. There were some days, that I felt like it wasn’t worth it and it was very hard. Now I look back over the last year, and it just doesn’t seem like it was that hard. Heavenly Father blessed us so much. For the first time in my life I fill like my blessing are coming so fast and so many that I don’t have the capacity to receive them all.
I am so thankful to have had this opportunity. It isn’t like I would ever ask for all these things to happen so that we could be in so much debt. However, I learned so much from the experience, it is hard not to be grateful for it.
You have probably noticed, that I have not been blogging much. It is my fear of not being able to produce anything worthy of being read. I don’t think this is beautifully written by any means. In fact, I wish I could get my brain to do some editing. Yet, I feel the need to post this now, or it might not get posted at all. I hope that somebody somewhere finds something in this that is helpful. For that is the real reason I blog in the first place.
Anyway, in just a years period of time we had accumulated over $10,000 in debt. I was feeling picked on and deprived. It wasn’t like we had spent the money on new carpet, furniture, vacations or a flat screen tv. Everything was in line with being a necessity. Of course I beat myself up over the fact that we could have “lived” without a new garage door and a dishwasher. We could have moved in everything from the garage into the basement and kept our vehicles locked and just had the broken door removed, because it was impossible to lift up. And of course we could have washed our dirty dishes by hand. We had some money in savings, but not enough to cover so many unexpected expenses in such a short amount of time.
So there we were, with $10,000 in credit card debt and in the middle of trying to put in a yard and feeling the desperate need to finish our basement. Toward the end of the year 2007, we sat down and decided that it had to stop. The year of 2008, was going to be our year to get rid of our credit card debt. If we were going to get our finances in order, we were going to have to come up with a plan. Our plan began with a budget and a goal to cut back on all unnecessary spending. This included things such as a new tv even if the old one went out (it was on its way out, but it made it) and we even included that one car was a necessity, two was a want. So if the car went out it was done, but the van needed to be fixed.
I also made a year birthday plan. The kids all got quilts for their birthdays, because that is what they needed. No toys or other items were given for their birthdays during that year. It also just happened to be a good year, because nobody was going to have a party that year. We also meant that the yard and basement were going to have to wait for another year. We also cut way back on Christmas. Almost half as a matter of fact. We did push back our last payment, because we decided it was more important to support as many worthy causes as we could. So, even though we spent less on ourselves, we ending up spending the same, because we gave so much more.
The last thing we did was recommit to shopping at Macey’s. It was something we had talked about first thing in our marriage, but I had gotten caught up in the $.50 boxes of cereal at Albertsons and buying some regular grocery items at Wal-Mart, because they were cheaper. So we recommitted to buying all our grocery items at Macey’s, because they were closed on Sunday. Even if it meant spending more on groceries. We continued to pay an honest tithe and a generous fast offering. We worked out our budget in such a way that we had as much money as we could to put on the credit card. The goal being to pay it off before the end of the year. The interesting thing being, I followed the budget very well, for about 4 months. Then some things got out of line and I didn’t do so good with it for the rest of the year. However, I believe that the one thing that pulled us through and made it possible was the commitment to shop at Macey’s. That was the only thing that changed that year, from any other year we had tried to pay down debt. I truly believe Heavenly Father blessed us to make all this possible.
Anyway, after a year of putting almost everything on hold, we made it. Not only did we pay off our credit card, but we paid off our van three months early. I say almost everything, because we did turn a funeral down in Arizona into a family vacation and we did find ourselves making a few unnecessary purchases, but all in all we went without a lot to make it work. There were some days, that I felt like it wasn’t worth it and it was very hard. Now I look back over the last year, and it just doesn’t seem like it was that hard. Heavenly Father blessed us so much. For the first time in my life I fill like my blessing are coming so fast and so many that I don’t have the capacity to receive them all.
I am so thankful to have had this opportunity. It isn’t like I would ever ask for all these things to happen so that we could be in so much debt. However, I learned so much from the experience, it is hard not to be grateful for it.
You have probably noticed, that I have not been blogging much. It is my fear of not being able to produce anything worthy of being read. I don’t think this is beautifully written by any means. In fact, I wish I could get my brain to do some editing. Yet, I feel the need to post this now, or it might not get posted at all. I hope that somebody somewhere finds something in this that is helpful. For that is the real reason I blog in the first place.
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Comments
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I just had to add a comment, pretty silly thing to do on my own blog, but I didn't want to use the brain power it would take to work into the above piece.
A couple of weeks ago DH and I went out to Panda Express for dinner. His fortune in his cookie stated "You will soon have the opportunity to improve your finances." I'm so excited about what paying off our credit card means for our finances. We have already decided to put everything that we were putting on the credit card into savings. With the help of the great refinance we got last month, not only do we now have the money to work on our basement, remodel the upstairs and finish the yard, but we should have four months worth of cash in a savings account by the end of the year. What an amazing improvement, don't you think?Posted 02-22-2009 at 07:27 PM by Dia Minha
- I failed to mention the three surgeries right smack dab in the middle of the year of debt. My two oldest and my husband all got their tonsils out that Christmas. I knew there was one other big thing that year, but couldn't remember when I wrote the original piece.Posted 02-23-2009 at 10:34 PM by Dia Minha
- Isn't it amazing how everything seems to happen at the same time? Several years ago DH lost his job at the same time DD2's preemie medical bills were coming due. DD1 had an ER visit for severe croup/RSV, and I had c-section bills. We depleted our savings & racked up a bit of debt, too. Very frustrating when you really have nothing to show for it, like a new car or something.
We got things all paid off, and our saving built back up a bit, only to have to take out a home equity loan 4 yrs. later to finish our basement in time for renters to move in. In a few years we'll have that all paid off & then will just have our mortgage (assuming nothing happens in the meantime to throw us off).
Thanks for your inspiring story...it helps me see the light at the end of the debt tunnel. I especially like the part about shopping only at Maceys. Maybe when we move back to UT we'll do the same & only shop at Dick's or Winegars.Posted 02-24-2009 at 09:02 AM by natickgirl - Natick, I belive that it was Heavenly Father that made it possible. I also believe He will make it possible for anybody else willing to sacrifice and work at it. I was amazed at how this year flew buy, with no big financial problems. We had a few set backs, but we planned ahead and kept $1,000 in savings at all time and that is what pulled us through those times.
I also feel a need to explain our refinance, because I'm afraid somebody might get the wrong idea. Right now there are 7 of us living in 1,100 sq feet. It has gotten to the point were we are in need of more space. We felt like our choices were to either buy a new house, or finish the one we live in. If we were to go buy a new house to fit our needs, we would have been looking at close to $200,000. We only owed $80,000 on our current house, and it appraised for $170,000. It made more sense to borrow against our equity for the $40,000 it would take to make our house work, than to try and sale this one and buy a new one. This one probably would not sale in its condition anyway. We felt like it was the best move for us, because essentially is was just like buying a new house to fit our needs. We got an excellant deal at 4.5% and it cost us around $3,000. However, we did not use any of that money to pay off our debt. Every penny of the refinance will go directly into the house, which will in return increase the value of the house.
Sorry to go on and on. I just hope that somebody out there reads this and realizes that it is possible for them. I don't feel like that would happen if I don't get all the details straight. Anyone can do this. Heavenly Father wants us all to be financially fit and will bless or desires to be so, if we are willing to put out the effort to do so. It will take some sacrifices, but I feel like Heavenly Father was waiting for me to show that I could go without, before He could bless me with more.Posted 02-24-2009 at 10:12 AM by Dia Minha - This is so awesome, Dia!
As one who has benefited so much from using your budgeting system, I think it's great to see it come to such a wonderful end and a fantastic new beginning! We also were better in the beginning with the budget system that we were in the middle, but about two months ago, I made the committment to do finances EVERY Saturday and I've been doing it. It only takes me a few minutes now because everything is caught up and on track with the budgeting part. We have yet to make it to the part where we can put aside savings out of our monthly income, but we'll get there. Thanks so much for being a wonderful example! 
Posted 02-24-2009 at 03:57 PM by Erudite - E it means so much to me to know that I was able help you in such a way. I have been thinking for a while that I needed to sit down with DH and discuss what we needed to do to get back on track. It pains me to know that we could be doing even better than we already are. The weekly allowance budget works for us. I know it does. It seems really silly not to be using it.Posted 02-24-2009 at 10:18 PM by Dia Minha
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This is just awesome, Dia!!
I do have to ask this- please don't think I'm being glib here, I'm just curious. Do you only support businesses that are closed on Sunday? Like, for instance, you don't buy detergent and shampoo at Walmart? You don't eat at restaurants open on Sunday? Or go to the movies? I'm honestly asking this.
I tend to think in terms of all-or-nothing when I'm considering ideas like this... so I'm just curious. Where do you draw the line? I don't know if I could give up movies... and I'm terrified that if I only shopped at Macey's, my household spending would double... (yes, it's a test of faith, I know)... anyway, just wondering. I really hope this doesn't sound like I'm poking you, Dia- the computer doesn't let you hear my voice, so you can't tell that I'm honestly just asking how you feel about this, not trying to be a smart aleck.Posted 02-25-2009 at 10:44 AM by bookworm - Bookworm, right now we have committed to buying all our groceries at Macey's because they are closed on Sunday. Eventually we would love to extend that to non-food items as well, such as laundry soap, diapers, etc. That will come after we have our 6 months of cash in savings. Right now I still buy most of my non-grocery items at Wal-mart. However, we decided that we would support Liddiards whenever possible, because they are closed on Sunday. For example, we bought our convertor boxes from Liddiards instead of Wal-mart. It cost us quite a bit more, but we wanted to support a company that was closed on Sunday. Right now it would be impossible to only support companies closed on Sunday, because their just aren't enough companies closed on Sunday, to meet all our needs. So we look for companies closed on Sunday to support, but we can't always do so.
Anyway, this is turning into a novel. I have been toying with the idea of blogging all this for a while, but I have been to timid. I'm always afraid of people thinking I'm an idiot for not shopping the Albertson sales, or getting the Sunday paper for extra coupons etc. and I haven't felt strong enough to defend my point of view. With our latest succes though I'm feeling stronger and I want to share. So look for a "Keeping the Sabbath Day Holy is More Than Keeping It Yourself, It is Helping Others Be Able To Do the Same" blog coming your way soon.
PS I love that you are interested. I'm not afraid to answer questions with those I feel safe. And I feel safe with you. So ask away.Posted 02-25-2009 at 01:01 PM by Dia Minha - You're not an idiot, Dia! We drive 10 minutes out of our way to shop at Maceys and we buy everything they sell that we need and for the same reason you do. I don't know about sales at other stores because I don't keep track. I would love to not shop at Walmart, but sometimes they're the ones carrying the thing I need. Your point of view is valid!Posted 02-25-2009 at 04:29 PM by Erudite
- Thanks E! I know I'm not an idiot. Sometimes I just feel like I come across as one. Especially when people are so tight in their opinions they are not willing to have an open mind and listen to mine. I'm coming around. Diva has been very good for me. She has really helped me come into my own and owe what I believe to be true.
We actually bought the house we are in, because it was closer to Maceys. When we were house shopping we narrowed it down to two houses, this one and one on the other side of town. It occurred to us that we would be doing most of our shopping at Maceys so we wanted to live closer.Posted 02-25-2009 at 06:54 PM by Dia Minha -
Excellent read, Dia. I enjoyed the "grand view" perspective. BS and I are in the process of figuring out what to cut out so that we can aggressively work on getting out of debt. Your blog is a light at the end of the tunnel. My frustration has been adjusting my mind-set to going w/o because I have no idea how long that is going to be. After reading this I can see that it really won't feel that long when I finally can look back on the experience. And, after seeing you work through all of this this past year, I can see that "going w/o" gave you the time and space to prioritize your wants - if that makes any sense - and I can tell from talking to you that they're different now than they were before.
I think we'll have to work for longer than 12 months, but your blog is hopeful, nonetheless. Thanks for taking the time to post it!Posted 03-02-2009 at 10:11 PM by 5ft Diva
Updated 03-02-2009 at 10:20 PM by 5ft Diva -
Hoo RAH!!! That is a great feat for ANYONE!
What your blog has done for me is help me realize what to expect from what I'm willing to give up. The more you give, the faster it (debt) will disappear.
I really appreciate your testimony on keeping the sabbath day holy as well. You're a true inspiration! Keep up the good work.Posted 03-02-2009 at 10:40 PM by Big_Sissy - Exactly Diva and BigS. The more you are willing to give up the faster the debt will go away. Making a plan helps you see the light at the end of the tunnel. When our year of paying of the debt started it was hard to think about having to wait the whole year for things like a new stereo, tv, flowers in the yard, basement, etc., but it is so worth it. We still don't have a stereo (we have to use the DVD player and listen to our CDs through the tv, which all the buttons are missing and we can't get it to work unless we can find the remote), but we are just waiting to finish the basement and start the remodel, because we wanting to put in a whole house sound system. You just have to make the dream or end goal big enough and real enough to make going without for a while worth it.Posted 03-03-2009 at 08:35 AM by Dia Minha
- And it helps to have your spouse there encouraging you to hang on because those dreams and goals will be reached.Posted 03-03-2009 at 11:40 AM by 5ft Diva
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