I like to say that Hubby and I should have won a financial stupidity award in our early marriage. Armed with credit cards and not much brains, we shopped foolishly and extravagantly. We even bought a dog on credit!
If there were awards for financial stupidity we deserved first place! That’s right, we bought a dog – on credit! A living being that could get die, run away, or be hit by a car. Or as happened to us, be stolen, leaving us to pay for something we no longer had. An Old English Sheepdog, Sheba was beautiful but not worth all that trouble!
That should have been a wake up call, but it wasn’t. We did try to cut back, but to no avail. We had a credit addiction and were over our heads in debt.
Submerged in debt
It soon became clear that we couldn’t keep up… And the bank must have thought so too, because they repossessed our car and mobile home.
We even had to borrow my parents’ car to get to the hospital for our son’s birth. And that was when we realized we had a problem. (Better late than never! :/ )
So in 1981 we took scissors to the credit cards, including the dog debt. And made a pact not to buy anything on credit. Then we worked to pay off our debts one by one, feeling lighter and freer as each one was paid off!
The rich rules over the poor, and the borrower is the slave of the lender.
Proverbs 22:7
Debt-free simple living
And that was the beginning of a new era for us. One that I like to call our journey to the simple life.
We had learned the wisdom of living within our means and buying only with cash. Learning to get by, to make do, or even to do without. This taught us that real needs are relatively few. And it increased our appreciation for what we already have.
We celebrated our 15th anniversary by making our last debt payment. We had nothing left for dinner out or gifts. But we’d gone from champions of financial stupidity to living debt-free. And that was far better than all the gifts or flowers in the world!
The debt snowball method
Only years later did we learn that our method had a name: the Debt-Snowball method. And here we thought we were the proud ingenius inventors!
It is an apt name for this debt-reduction strategy in which you pay off debts in order, from the smallest balance to the largest, gaining momentum as you do so. The amount of money you can throw at your remaining debt grows – much like a snowball rolling down a hill does (hence the name).
Once you get the ball rolling, you put as much of your money as you can into paying off your debt. And you get closer and closer to being debt-free!
The good news is that it worked for us! It wasn’t easy and it took determination and discipline. But knowing that it was good for us helped us keep our eyes OFF of things we didn’t really need, and ON the benefits of being debt-free.
Living mortgage free
Fast forward a few years and we also became mortgage free!
At the age of 50, the Lord enabled us to buy our own home, by taking out a relatively small personal loan (€30,000), paying it off in 6 years. We were even able to pay it off 3 months early!
Although it seemed impossible, we don’t owe anyone money for anything. The only payments we are have are standard bills like utilities and car insurance.
Living without debt has been a great blessing for us. Partly because our income as missionaries was unstable. But mostly because it gives us so much more freedom and peace of mind!
4 Advantages of debt-free living
Debt-free living comes with many benefits, but these are my favorites!
1. More time to relax.
You may be able to work less and find that you have more time to relax.
2. It’s easier to save for a rainy day.
With fewer payments going out, it’s easier to save for a rainy days. Or for making future purchases like replacing your old car, or just to enjoy a few more special treats.
3. It becomes easier to help others.
We are freer to reach out to others with a helping hand.
4. Less worry about loss of income.
We never know what the future will bring. Life has a way of throwing us unexpected curveballs or smacking us in the face with icy snowballs.
Having no payments to cover other than basic monthly expenses (food, utilities, shelter, and transportation) helps make any loss of income so much easier to manage. It brings greater peace of mind. Debt, on the other hand, would only make such events more worrisome.
Mission Possible
Getting out of debt may seem like “Mission IMpossible.” If so, take heart from our story. Because believe me, if two financial morons like us could do it, so can you! Getting out debt really is Mission Possible!
If debt-free living seems impossible to you, take heart from our story. If two financial morons like us could do it, so you can you!
Disclaimer: This information is provided for informational purposes only, and not intended to replace financial or legal advice! Please don’t hesitate to seek professional counsel or representation.
Signora Sheila 
50 responses to “Dog Payments, Snowballs and Debt-Free Living!”
Thank you for your honesty, Sheila. It’s sure to encourage others to face their debt and begin to systematically pay it off. Kudos to you for doing just that!
LikeLike
I hope so, Nancy! That was my hope in sharing our story. Debt becomes a tyrant, one we’re glad to be free of!
LikeLike
Congratulations to you and your husband!
LikeLike
Thanks so much Vanessa! It’s a wonderful feeling!
LikeLike
Congratulations, Sheila. It is so very freeing to be rid of debt! Bless you for sharing your great achievement. Be well. Karen
LikeLike
Thanks Karen, and yes it is very freeing! God is good!!
LikeLiked by 1 person
Congratulations! It is something to celebrate.
LikeLike
Thanks! Yes it is indeed!! God is good!
LikeLiked by 1 person
I’m not great with money, but I’m from Yorkshire. Yorkshiremen are stereotypically stingy/frugal/prudent, depending on who you ask, and in that respect I’m a stereotypical Yorkshireman. And thankfully I’ve married a Proverbs 31 woman, who manages our money better than I could! Thanks for the post- and congratulations on reaching a jubilee!
LikeLike
Thanks Robert! Not having a mortgage is a huge blessing! I’ve heard that Yorkshiremen have that tendency. As long as it remains frugal and prudent it’s a great trait. But not stingy!! And you certainly don’t give me that impression!!
LikeLike
I hope not! A study was done a few years ago which actually showed that Yorkshire folk spend among the most in the country on Christmas presents. And at the moment it’s not just toilet rolls and hand sanitiser being panic bought but lots of alcohol!
LikeLike
People are going insane about toilet paper! It’s so crazy!! I hope all that alcohol isn’t for drinking, lol!
LikeLike
I only hope I can keep my cash only lifestyle going til $0. Your story is inspiring. Congratulations on strides you have made!
LikeLike
I’m so glad it inspired you! Getting out of debt is not easy and takes lots of work. But it is SOOO worth it in the end!! Just keep on keeping on!!
LikeLike
*Not everyone learns… which is a shame…
LikeLike
Yes it is a shame. But I’m sure glad that we did. I’d hate to be still living that nightmare!!
LikeLike
I have also been in those shoes. Very interesting read. I’m glad that life has blessed you and you have learned from mistakes made in the past. Now everyone learns, which is a shame.
LikeLike
Glad you say that you had been in those shoes. They are shoes that do not make a comfortable fit. Nor is it a pleasant path to trod!!
LikeLike
I just found your blog. I love this post. It’s inspiration and wisdom all in one.
LikeLike
Aw, thanks so much! I’m just grateful that God has helped me learn through all of life’s varied (and often strange) circumstances! And hope to get wiser as the years pass. I still have much to learn and much growing to do!
LikeLike
We know your story all too well! We are almost there but like you, it has taken some firm action on our parts.
LikeLike
Debt is such an insidious thing. Just sneaks in and before you know, you’re trapped!! Glad to know you’re almost out too! That will be a day to celebrate!!
LikeLiked by 1 person
My husband and I married young. I guess we thought we should start out having it all, and we both worked, so…
We bought a house, furniture, appliances, a car, and a motorcycle and then I decided I really thought it was time to start our family. Needless to say, we ended up in debt and it took several years to understand how to “make ends meet” within our means. Thank you for this post, Sheila, and for expressing the freedom that comes from not being tied down by our desires for more “things” –
LikeLike
Sounds like our backgrounds are similar Doris. That plastic money certainly made things seem easy. But it created a lot of long-term trouble for us. Contentment with what we have is, I think, a real treasure! Glad you too have stepped out of that cycle!
LikeLike
I think the way my husband and I are living now will help us in the future. This year we will be able to pay off the car payment and the bed payment. :)
LikeLike
Good job TR! It’s amazing how much further money seems to go when we don’t have to make extra payments. Just amazing!! I’m glad you won’t owe on your bed. Then no one could ever come and take it away, lol!
LikeLiked by 1 person
Yes :)
LikeLike
Congratulations! Praise God for giving you a biblical perspective on debt and giving. :)
LikeLike
Indeed, because we were a real mess!! He is good and continues to grant wisdom as we journey along! Thanks Linda!
LikeLiked by 1 person
Good for y’all!!! Debt free living is a relief and freedom to be able to be and do whatever called to do! Keep the good work!! (And at least you bought a dog on credit, not a cat!!) ;)
LikeLike
Thanks Jeff! And I guess that’s true, but we do like cats better!! A nice Abyssinian Blue or something… Just kidding!
LikeLiked by 1 person
Lol
LikeLiked by 1 person
Congratulations. Amazingly I’ve made that journey three tImes. The first two weren’t loud enough calls. But it sounds like you’re not in that danger so I’d celebrate and have a nice meal. Even if it is at home. Without a dog.
LikeLiked by 1 person
No dog, no. lol! Actually we’re planning on going out for a pizza on Saturday night!! And we’re going to burn a photocopy of the mortgage! Thanks for rejoicing with us, and glad you too got back on track!!
LikeLiked by 1 person
Congrats! What a great feeling. We’re on track to be mortgage free in a few months, 9 yrs ahead of schedule so I share your enthusiasm.
LikeLike
That’s awesome Kathryne!! It’s such a good feeling and a great blessing! Keep on track!!
LikeLiked by 1 person
Sounds like you are telling our story. We are not completely out of debt, but have come a long ways with this same process. It is so much more freeing with low to no debt. And it is being a good steward with what God has blessed us with. Thanks for sharing.
LikeLiked by 1 person
Yes it is Tom. And then we take those blessings to bless both our family and others even more. Keep plugging away at it. It’s worth the effort!!
LikeLiked by 1 person