Reducing Debt in 2009

"Just as the rich rule the poor; so the borrower is servant to the lender."
Proverbs 22:7

My husband and I have been working on paying down our debt since last summer. After reading Dave's Total Money Makeover we both decided that we had had enough of owing money. The Bible teaches us that we are to owe no man. At the beginning of our marriage we only had $3,500 in student loans and no other debt. Unfortunately we decided to listen to what others were telling us and take out student loans, car loans, and a mortgage. We did not know that there was any other way. Debt was just something that everyone had. We were even told that student loans are considered "good" debt. How could we have been so blind. 

We are now paying off a student loan we used to pay for a truck that has been totaled for almost 3 years now. My husband was always against taking out loans, but I usually managed to talk him into it. Thanks to him we have a lot less then we might if I had gotten my way. 

Thrift Florida Mom is hosting a monthly debt buster meeting. I have decided to join in. We have a HUGE goal this year. I believe that you should always aim high. If you don't you will never know what you can achieve. If you don't make it at least you gave it all you had. I have prayed about this so many times. I am trusting the Lord to help take care of us. I know he has put it on my heart to be debt free. With the Lords help it is possible although it will take sacrifice and extra jobs. I would love to hear from you. Any encouraging words you can leave would be greatly appreciated. 

I am going to follow the lead of Florida mom and list out my debts so that each month you can see my progress and hopefully you will be inspired to tackle your debt this year. 

Car loan $6,300 - We owed around $14,000 last June 
Student loan $8,500
Student loan $10,500

These are approximate numbers. I have the 2 student loans in forbearance right now. We are putting everything extra we can toward having the car paid off by May or June. My ultimate goal would be to be debt free by January 2010 which would mean paying $2,100 a month toward debt. My family thinks I am crazy. My husband teaches at a technical college and I stay home. To help with this goal we are on a very strict budget and we are planning to take on some extra jobs. 

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8 comments:

Monica said...

You're going to do this! How exciting it must be to imagine a year from now when you own no man:)

Thrifty Florida Mama said...

Lorrie,
You can do it! We too were sold so many "lies" about what couples do and need and should do and might need that we bought into debt as a way of life. No more! We are called to be different and sadly debt-free is different in our times. Here's to us and our debt free goals!

ShainaPearcePhotography.com said...

Wow! That is ambitious! But you are disciplined enough, I'm sure you will get it done. We are, also, trying to get out of debt and, will be soon, thankfully. I'm afraid that the way the economy is turning, many people will be shocked at their financial situation and the turns might take, in the near future. I look forward to following your progress!

Bleacher Bottom Babe said...

Awesome goals! You CAN DO ANYTHING if you have the right mindset! Putting in the extra work is hard but will pay off! Congrats on making the commitment!

momstheword said...

I am used to certain people thinking I am crazy (it started with homeschooling and went on from there, lol!).

Think of it this way, if you did not have a desire to reduce your debts you probably would not have an active plan to do so, and you wouldn't succeed as well as if you have a plan.

We are going on a financial "diet" too, so I am looking foward to hearing how you are doing in reaching yours!

Jennifer said...

That is awesome! I have also made some financial goals for 2009 and I'm going to go on over to Thrify Florida Mama and check out this challenge right now (well when I'm done checking out your site)! You can do it!!!

Shari said...

Super! You're not crazy - just sensible and determined.

Prudent Homemaker said...

Good for you!