Getting out of debt in a short period of time can seem impossible. When Kim and I had $52,000 in consumer debt, it seemed like we would never get out of it. We were frustrated and overwhelmed as we came to terms with our financial situation. We wanted to be debt free and we didn’t want to wait decades for that to happen.
We paid off $52,000 of debt in 18 months
When we got married, one of the first things we did was combine our finances. This was a big step, but it is one that I highly recommend doing when you get married. We listed all of our debts on one piece of paper and that is when we realized how much debt wee really had. It is amazing how it all adds up so quickly.
We decided to create a Financial Game Plan where we put our entire financial picture on one piece of paper. We then decided to do whatever we could to pay all of our debt off in 18 months. We took a class, read books and met with people who were successful to figure out how they managed money.
I decided to make a career out of it
At the time, I worked for a wood flooring manufacturer called Vintage Hardwoods. It was a great company and I loved the people there. However, I had a strong desire to help people do what we did to get our finances in order. I decided that I would talk to people in the financial industry to see what they thought. After meeting with a number of financial advisers, I found a company that had a mission that seemed to line up perfectly with what I wanted to do.
After working there for about 3 years, I realized that it was not where I wanted to be long-term. I was spending most of my time doing analysis work behind a computer and very little time interacting with people. I really had a strong desire to help people get out of debt and get their finances in order, but that just wasn’t happening where I was at. On February 15, 2013, I decided to go out on my own and officially became an entrepreneur to start pursuing my dreams.
I created a personal finance class for young adults
At the same time, I had created a class called “Start Up” which I designed to teach young adults how to manage money well. Initially I had only been teaching at my church, however, I knew that I needed to take the class online. Due to being in the US News and World Report as well as Fox News, I had received a ton of emails from people all over who were interested in taking the class.
On February 28th, 2013, the first online version of Start Up was launched. It was a 4 session class that went for four weeks, however, there was one major challenge. People had to be at a computer at a specific date and time to participate. This meant that people were not able to attend every class. Although, I had recorded the classes and the people were still able to participate, I knew that I had to create a version that people could access 24/7.
Introducing Debt Free in 18 Months
After learning a ton from launching Start Up, I created a new class called “Debt Free in 18 Months“. I realized that when we were getting out of debt, we needed to have a goal and that goal need to be time sensitive. By attaching a time frame to our goal, it created a sense of urgency that we didn’t have before. We were able to start with the end in mind and then work backwards.
We knew that we had $52,000 in debt and that if we wanted to pay it off in 18 months, we would have to about $2,888 per month ($52,000 divided by 18). Well, that definitely didn’t seem possible. So we decided to sell my brand new car that was underwater and that eliminated $18,000 of debt like that. Now with $34,000 left to pay off, we only needed to come up with $1,888 per month to become debt free except our home.
How did we come up with $1,888 per month to pay off our debt?
Put simply, we cut our expenses and increased our income. Want to know the details of how we were able to achieve our goal?
In this class I will share with you the exact steps we took to get out of debt so quickly and help you do the same!
Refinance Your Student Loans or Credit Card Debt
With the average credit card interest rate around 15%, this could save you a ton of money over the long haul. SoFi will refinance your credit card debt to as low as 5.99% so that you can pay your debt off even faster. Use this link to get $100 cash back if you get approved. They also refinance student loans to as low as 2.355% APR.
Have a Lower Credit Score?
Check out Credible instead as they are able to help people refinance to a lower rate that don’t have great credit.