You, Too Can Be Debt Free

 

 

 

 

 

 

 

 

 

One Family’s Story About Paying Off Their Debt

Debt can be overwhelming. You make monthly payments on your loans and credit cards, but the debt never seems to go away. Does this sound familiar? You’re not alone.

· About 4o% of American families spend more than they earn each year.

· Average households carry some $8,400 in credit card debt.

· Personal bankruptcies have doubled in the past decade

 Lynnette and David were one of those households. Actually, their debt was higher than the average American household.

“I had maxed out my credit card on partying and drinking. It was about $6,000. Not my brightest moment. Dave had run up his bill and then got laid off from work. His debt was about $4,000. When we met, we already had our debt,” said Lynnette.

The couple started their marriage with $10,000 of debt, but they wanted to enter parenthood debt free.

“The turning point for us was when we decided I was going to be a stay at home mom,” said Lynnette. “At that point Dave applied for and got a new job with better benefits and a better salary. Even though I was working full time, we started living only on Dave’s salary just as we would when our first child was born. We wanted to be sure we’d be able to pay the bills and put money in savings on one salary. Then we took everything I made and started taking chunks out of our credit card debt. We paid it all off before our daughter was born and closed all of our accounts. We vowed never to open another line of credit after that.”

Lynnette and David have been free of credit card debt for nearly five years.
“Our only current debt is the mortgage and my car payment. Dave paid off his truck in '03, and we're going to keep it until the wheels fall off. We plan on doing the same with my car, Lynnette said.”

Lynette offers the following tips for living debt free:

· Keep your vehicles as long as you can after they are paid off

· Live on a budget. If you don’t have the money for something, don’t spend it.

· Build up your savings for emergencies and the things you want to own instead of living a life of instant gratification.

· Cut up your credit cards so you won’t be tempted to use them.