Today I want to talk about a little of the back-story that lead to me really kicking into high gear on our family’s debt-reduction mission. Check out my story and be sure to leave yours in the comments! I’d love to hear more about what caused you and your family to decide that you really needed to kick some debt booty!
If you’ve read my debt story then you know that I haven’t always lived my life with debt. It wasn’t until I started graduate school that I took out my first student loan, then another, and another. Meanwhile, I also financed basic life essentials by paying with credit cards (and never paying them off). In the span of just two short years I amassed over $70,000 in debt.
It was an overwhelming amount of debt so I kind of distanced myself from it, psychologically-speaking. I knew I wouldn’t be able to make any real progress on it until I was done with grad school so I just pushed it out of my mind until that time.
I graduated with a Ph.D. in August 2013. I was lucky to land a position the same month, but at that point I still wasn’t gung-ho about debt reduction.
Really buckling down with debt-reduction had been in the back of my mind for awhile, but I hadn’t felt a great sense of urgency. I was making over minimum payments, but didn’t have a set plan in place (like my debt attack plan of action), and although we had a budget, the spending categories were all set much higher than currently (specifically, a lot more went toward groceries and eating out each month).
But the seeds had been sown.
By Fall 2013 I was really starting to feel more of a need to get our finances in order. I was working full-time (side note just to clarify the job situation…..I was hired at my old alma mater and worked a full-time/in-person position. But only a few months later in December 2013, the faculty member with whom I worked moved to a new university. I continued to work for the new university through distance, but switched from being a full-time employee to a part-time contract employee. This is the “University B” I’ve referenced many times). I started putting big chunks of my paycheck toward debt.
During this time, I started to immerse myself in stories of debt reduction. I’d been reading BAD casually for awhile, but I went back and re-read entire bloggers’ stories. I did the same thing with No More Harvard Debt, Man Versus Debt, and Fun Cheap or Free.
In February 2014 I was listening to my favorite morning talk show, The Bobby Bones Show (it’s a syndicated radio show in several markets across the U.S., so check it out, it’s really good!) and they had Dave Ramsey on. I’d heard the name Dave Ramsey before (Beks even wrote about attending Financial Peace University), but had never googled him, read his books, heard his show, etc. Bobby Bones had him on the show that day to give financial advice to one of the show’s producers, a mid-20s guy named Ray. Ray had just bet (and lost) his truck in a Super Bowl bet (True story. He got money at a cash-for-title place and bet it all on the Super Bowl. He lost the bet, his money, and his truck. You can see the segment here if you’re interested)
Anyway, this was kind of a turning point for me. Hearing Ramsey on Bobby Bones really made me curious about this money guy. I looked up his show and downloaded some (free) podcasts. Hearing the callers’ success stories and debt free screams was so incredibly motivating. I’d already been actively working on debt reduction, but this was the point at which I decided we needed to really be gazelle intense about it (a term Ramsey frequently uses).
This all set the stage perfectly for when Adam and Emily decided to step down as bloggers, and new bloggers were selected (in late March 2014 – you can see my first post as an official blogger here).
That brings me to the beginning of my journey here.
I’ve been lucky. I’d already committed to debt reduction previously, but hearing Ramsey for the first time, and then starting to blog here (and the accountability and encouragement that comes with it) has been a real kick in the pants! I have no doubts that I’d still be on this debt-reduction journey regardless (even if I hadn’t been selected as a blogger here), but I also have no doubt that progress would have been much slower. So I’m very grateful I’ve had your support and encouragement along the way. There’s still a long road ahead, but it actually feels doable now (something I couldn’t say only 2 years ago).
How did you get started on your debt reduction journey?