You Did What...?

[DJ Minteer]

When I met my wife, Deborah, just seven years ago, I had no emergency fund or retirement account, and my credit was ruined. How did this happen? Credit cards, student loads, and car payments were some of it. But moving my no-equity mobile home onto 20 acres purchased with money I couldn’t afford to borrow pushed me beyond my financial resources.

Whenever possible, I juggled debt around between credit cards. But they were nearly maxed out, the introductory low-interest periods were coming to an end, and the overall debt wasn’t changing. I quickly found myself living from paycheck to paycheck. On occasion I even went to those rip-off quick cash stores to tie me over to payday. I tried cutting back, spending less, working extra hours, but it seemed like no matter what I did it wasn’t enough. Then I got behind on some payments, and the credit card companies were merciless. A bad credit score coupled with having a mobile home on land made it nearly impossible to get a bank interested in refinancing—at least on any favorable terms.

Although it was embarrassing, I occasionally asked some relatives to help and they did. This simply delayed the inevitable. It hit me like a ton of bricks the day I realized what a huge mess I was in. How could someone making a pretty decent wage be living like he was broke? The stress of my debt was overwhelming. In fact, it loomed bigger than everything else in my life. Worry and anger took much of my energy. Debt made me nearly useless as a light for God. It stole my joy. I felt beat up and defeated. I desperately prayed for God to show me how to get out of this mess.

Deborah and I were a month away from getting married when our marriage counselor told us to get in agreement financially. Before then we had avoided this topic, because it was my hot button and I was embarrassed to share how deep the hole was. Our perspective on finances was radically different—Deborah was debt-free, had an emergency fund, and a retirement account. I was broke and considering consolidating some loans. I asked Deborah what she thought about it. Deborah simply handed me an audio book called Total Money Makeover (Dave Ramsey) and asked me to listen to it. And I must say, as much as any wonderfully convicting sermon has ever hit you were it hurts, that book did just that. Can’t say it felt real good at the time, but I immediately knew I HAD to change what I was doing (or wasn’t doing) with money.

We started to get radical. First, we made sure that our wedding was paid for in cash. After we were married I moved into the basement apartment Deborah had been renting. Then we put the mobile home on the market. Now here’s the funny thing. If the place had sold, we could have been debt free. But as you know, a mobile home on land is a hard sell and hard to finance. Until the place sold, we would rent it out. The mortgage payment was nearly twice the rent payment, so we prayed that a buyer would appear quickly. That didn’t seem to be what God had in mind. I think I needed to experience a little more pain of this whole debt thing.

In the mean time, we started a monthly budget, set aside a $1000 emergency fund, and got the debt snowball rolling. It was agonizing to watch the money come in and go right back out month after month. But we were convinced of the rewards, so we kept simplifying every way we could. We sold stuff, all kinds of stuff—if it couldn’t fit in our apartment, then it was gone. Deborah’s (pre-marriage) savings was used to pay down one of the credit cards. I sold my upside down car, took the loss, and paid cash for an 18 year old junker. The cell phone and satellite TV were canceled. Vacations were postponed. Allowing ourselves any luxury seemed to just keep us from the peace we were after. We put every dime we could into paying off debt. The tight budget was worth it. The only frustrating part was that it seemed unfair to me that Deborah had to sacrifice so much during the first years of our marriage because of my debt. This really bothered me. Yet she’d always point out that she couldn’t enjoy the good times if she didn’t share in the challenges too.

After nearly two agonizing years of our tight budget and debt snowball we finally paid off the last of our debts—except for the mortgage. Doesn’t it figure that only THEN the mobile home would finally sell? Ironically, within one month of selling the place and being COMPLETELY out of debt, I also got laid off. But by then our emergency fund was fully funded (3-6 months living expenses) and we were not worried. In fact, we went out to dinner to celebrate. I never knew there could be such a peace in times like these. I was no longer in the position to HAVE to work any particular job. I could take whatever job I wanted. There was a peace that God would open another door and He did.

Just two months later I found a job closer to home (no more 3 hour round trip commutes to/from work). And darn, the pay was not nearly as good, but who cares? The new job was so much more fun and it gave me a lot more time every day to actually do things that matter. Life is good these days.

I’m afraid to add up how much stupid tax was paid during those years; I’m just glad to be past that and not ever wanting to return. Thank God. And thanks to my beautiful, smart wife for helping me see the light.