Our Story of Paying Off Six Figures of Debt

Our journey into debt was not born out of extravagant spending or poor financial decisions; it was rooted in our pursuit of education. The decision for my husband to pursue a JD/MBA was made with careful consideration. His scholarship covered a significant portion of tuition at a reputable law school, and we believed that investing in education was a worthwhile endeavor. What we did not anticipate was the relentless increase in tuition fees year after year, outpacing the scholarship amount. The reality hit hard when we discovered that the in-state tuition for the second year of law school was equivalent to the out-of-state tuition we had faced in the first year.

Throughout this challenging period, we adopted a frugal lifestyle. My husband worked diligently to cover our living expenses while I stayed home to raise our young children—our daughter was born just before law school, and our two sons arrived during those demanding years. To contribute to our household, I operated an Etsy shop in the evenings, which helped us manage our food budget. This collective effort, though exhausting, was a testament to our commitment to overcoming our financial challenges.

In the beginning, the idea of aggressively paying off our loans felt daunting. Our focus was primarily on saving for a house, a goal that seemed more tangible than the nebulous concept of debt repayment. In November 2012, we celebrated a small victory by paying off a $4,000 loan, but our primary focus remained on saving for our future home.

However, everything changed in May 2013 when I stumbled upon Dave Ramsey’s book, The Total Money Makeover. His straightforward approach to personal finance struck a chord with me. After crunching the numbers, I realized the alarming rate at which our loans were growing and how astronomical they would become if we continued to postpone repayment in favor of saving for a down payment. It was a wake-up call that shifted our priorities.

I knew my husband desired a house, but he was equally committed to the idea of paying off our debt first. With a shared vision, we set a goal to eliminate our loans by the end of 2016. At the time, my husband was earning $39,000 a year, and while this seemed like a stretch goal, we were fueled by motivation and determination. By the end of August 2013, we had already paid off approximately $32,500, thanks to the savings we had previously set aside for a down payment.

Our story of debt repayment was not merely a financial endeavor; it was a journey that tested our resolve and strengthened our relationship. We embraced a frugal lifestyle, cutting unnecessary expenses and focusing on our goal. My husband worked diligently, balancing his job with the demands of law school, while I managed our household and took care of our three young children.

During the years of law school, we faced numerous challenges, including rising tuition costs that exceeded our initial estimates. While my husband had received a scholarship that covered a significant portion of his tuition at a top 25 law school, we were unprepared for the escalating costs in subsequent years. The financial strain was palpable, yet we remained committed to our goal of financial freedom.

Living frugally became a way of life for us. I found creative outlets to contribute to our household income, including running an Etsy shop that helped cover our grocery budget. We learned to prioritize our spending, focusing on necessities and forgoing luxuries that many of our peers indulged in. This period of sacrifice was not easy, but it was essential in paving the way toward our financial goals.