WE'RE DEBT FREE!!! Imagine us screaming those words from the top of our lungs just like you'd hear on the Dave Ramsey Show. We are so excited to be able to say that. We've never had much debt in our marriage (until the past couple years). In the beginning Rob did have a little bit of debt from school when we first married that we clean up right away and we borrowed some money from my parents several years ago for a car that we paid back as quick as possible. But other than that we've tried to save our money and live frugally (and if you know me you know I'm frugal).
When Rob decided to peruse an MBA we knew we didn't have enough in savings to cover tuition and living expenses for 2 years, but we knew it'd cover some. So we made the move and started school. We paid tuition and lived off our savings for almost a year. The second year we took out a loan. Our loan option was a bit different because the smallest amount we could borrow was $20,500. So that's what we borrowed. A lot of it went straight to the school for tuition and then the rest came to us. It was our hope that when school was over we would just throw any left-over loan money right back to paying it off.
Well when Rob finished school in May we didn't have a job lined up. We moved to Utah to live with family while Rob job hunted. We didn't expect to be without a job for 4 months, so that left-over loan money really helped us make ends meet. Once Rob started his job with Adobe, we started making payments on our loan. At first we threw $5000 at it, which half of it went straight it paying interest (boo), and then we continued to make small payments every couple weeks. Our hope was to pay it off before the end of the year. But not having a job for 4 months, moving expenses, and all the money we had coming out of our paycheck for taxes, insurance, 401 K, etc we knew we wouldn't be making that goal. What really helped us pay off our loan so quick was our tax return. We got back a decent amount and took that and almost every penny we had to our name and paid it off.
I won't lie. It was terrifying depleting our bank accounts to pay it off. We've never had so little in the bank. And it's been hard trying not to spend an extra dime anywhere. And even though it's been hard living on so little it's been a really good experience. I don't love it and it's depressing, but it sure makes me appreciate all that I have and the way we have been able to live... even if it's been far from extravagant.
So in 9 and a half months (including 4 jobless months) we payed off $23,389.13 and we are now debt free!