A few years ago when we moved to the US, we got into debt.
Related article: Should I Tithe if I’m in Debt?
Prior to that, when living in Hungary, we had never gone into debt, and had even been able to save enough money to put a down payment on a house, buy a car and a few other things when we moved to Colorado.
The reason we went into debt was because of the legal fees associated with getting our adopted son’s papers straight here in the US. It was a 2 year process, and we are grateful for the good work that our lawyers did, but it put us in the hole quite a bit – albeit a small price to pay to take care of something important for someone we love.
Our debt was on several credit cards and loans and when we started adding it up, we were frustrated to see how much we were paying in interest, and how we had been robbing Peter to pay Paul but never making any true progress. Like many people, we though we were working the system and winning by accruing points from our cards or by using interest free loans or by saving 5% here or there by using this card or that. We weren’t winning at all.
In November of 2014, our church, White Fields, hosted Dave Ramsey’s Financial Peace University course. Another couple from our church led it, but my wife and I were some of the first to sign up. We had wanted to get out of debt for a while, but had lacked a solid game plan, so we hoped this would help.
It did. Just yesterday we made our final payment, and are debt free!
The journey to dropping this debt meant a change of lifestyle in many ways. We started budgeting and sticking to our budget, even at the end of the month when it meant not doing things or buying things because we had already spent what we budgeted for that month. We sold our SUV and got a smaller car which saves us money on gas and maintenance. We got rid of cable and cut some of our monthly subscriptions. I worked doing snow removal in the winters and other odd jobs when I had the chance. We had several garage sales and Craigslisted many items. Tax returns went to paying off debt rather than going on trips.
The benefits have been more than just financial. The process has helped us to be more strategic about what we spend our money on, which ulimately reflects our values.
The Dave Ramsey material was good because it gave us a plan as well as a framework for thinking about money and how it speaks to your values. Ultimately the goal is to begin to use the blessings that God has given you to be a blessing to others in the world (cf. Genesis 12:2).
If you’re looking to get a better handle on your finances and a game plan for the future, I recommend taking one of these classes. We’re excited now to move forward from here and continue using these same practices for new goals.