The Enemy of Debt Questionnaire – Congratulations to Jeff Lundberg!
How much debt did you have and how long did it take you to pay it off?
We paid off over $65,000 in 22 months.
How does becoming debt free actually feel? Does it feel better than you imagined it would?
We paid off our last debt (besides the mortgage) last month. It feels great! We’re very excited to start building wealth and being able to give!?
What were some of the struggles that you had to deal with along the way? Was there ever a time where you almost gave up?
The hardest part was sticking with a written budget and staying motivated. There were a few times where we wanted to give up, but we stuck to our goals and pushed through.
What would you consider to be the most important key to becoming debt free? What helped you the most?
Learning to say “No” to yourself is essential. We posted charts and debt “thermometers” on the bathroom mirror. Every time we met our goal for the month, we would cross it off.
It’s important to actually have a plan. Figure out how much debt you have, and how quickly you want to pay it off. Then, determine how much you’ll need to budget each month for debt payments in order to meet your goal. Write it down. Every month, physically cross it off. Put it someplace visual where you can see it every day.
It’s also important to visualize why you want to become debt free in the first place. Think of how much extra money it frees up each month. What would you do with that extra money?
It seems a lot of people have bought into the idea that debt is essential in order to prosper, what do you have to say to those people?
Banks and creditors are really good at pushing their product: debt. It is one of the most marketed products in history. Especially in Western societies, it has been woven into the culture.
Your grandparents didn’t have credit cards. They didn’t even exist. People still pay cash for cars and even homes. Normal people.
What was the biggest sacrifice you would say you made in order to become debt free? What about you changed the most?
We cut back in pretty much every area of our budget. For me, the biggest thing was not eating out.
Did your friends and family give you a hard time about your new mission to eliminate the debt from your life? If so how did you deal with it? Do you think you inspired others by your journey
Most of my friends and family were supportive. One of my co-workers balked whenever the subject came up, though. He felt that you would always have a car payment, and always have debt.
He congratulated me on becoming debt free, but somehow I still don’t think he was convinced.
What is next for you? What financial goals do you plan to accomplish?
We’re working the Dave Ramsey Baby Steps.
1 – $1,000 cash in the bank (done)
2 – Debt Free except the house (done)
3 – Emergency fund of 3-6 months expenses (almost done)
4 – Save 15% towards retirement (starting in June)
5 – Save for kids college fund (starting in June)
6 – Payoff house early (we refinanced to a 15 year fixed, will pay off sooner)
7 – Become wealthy and GIVE
This story was submitted by Jeff Lundberg of www..jefflundberg.com. Jeff is a web developer out of Detroit, MI. His wife is an attorney. They both decided to follow Dave Ramsey’s plan and get out of debt!
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More to come…but only if I get some new submissions! 😀