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How To Pay Off Debt (Even If You Have An Irregular Income)

We paid off all our debt in March of 2010. The sense of freedom and the peace that I have had since have been amazing.

You CAN pay off your debt even if you are cash-flowing other things!! It is entirely possible!! |Cook With a Shoe

Paid off Mortgage

The foundation for my story was set early on when I was growing up. My parents did not have a lot of money in the early years and I remember how my mom stretched the money as far as she could to make ends meet. Both my dad and mom hated being in debt and they worked so hard to pay off their home mortgage early, which they did by the time I was 13.

After they made the last payment, mom was so tickled when a lender would call to offer a better interest payment on the mortgage. “So, you can do better than 0%?” she would gleefully say. One guy fell for it and replied, “Better than 0%, I guess that means we would have to pay you.”

My grandparents, who lived through the Great Depression, and several other people influenced me strongly with the ideas of working hard and saving up money until you could afford to buy something without going into debt.

I got my first real job when I was 16 years old so that I could drive my parents’ Toyota Cressida that had no AC. I  did not care that the car only had 4/40 AC (4 windows down going 40 mph); I had wheels and just had to pay for insurance and gas.

Instead of fixing the AC, I started saving every dollar I could in order to go to Hawaii for my senior trip. Another thing that I was excited to do once I had steady income was to start sponsoring a little girl in Ecuador as a way to give back to God and show my thankfulness for His provisions.

College, graduation and a car loan

Thankfully, my parents were able to afford my college tuition when I went out of state studying sign language interpreting, however I still had to work through college in order to afford my living expenses.

I started budgeting during this time because I had to, but sitting down and actually working on a budget was always very stressful for me. Money was so tight and sometimes I did not know if I would make it to the end of the month.

As I graduated college and moved home in time for my sister’s wedding, I had to start carrying a credit card balance. I simply had not prepared to save for moving expenses. That first year home was really difficult as I struggled to get work as an independent contract sign language interpreter in a new city. The challenge of trying to get enough work to pay off my credit card and to pay my parents back for expenses accrued during my senior year was very trying.

I had to field comments from my well-intending family that maybe I should get a real job instead of interpreting. When I sat down to work on my budget, I’d have to fight waves of panic. I did not have enough money to really make ends meet, much less to be able to move out of my parents’ house.

How was I going to get anywhere in life?

Bank balances did not always match my balances on Quicken and transactions were often missing. I hated doing a budget, every part of it! I only made a little more than $8,000 that year.

The following year, a garbage truck had a run in with my parents’ truck (that I was driving) and tore up the side of it. The accident started discussions that I should purchase a vehicle for myself. When a friend wanted to sell his car, my dad jumped on it and said I should buy the car. I found myself at the credit union signing a ton of papers, taking out a car loan for $8,250 and feeling a just little freaked out at borrowing that much money.

Yup, I was normal with a car loan, money to pay back for school, no savings, not enough money or a good plan to really get ahead and hating every moment of it! Looking back, it would have been nice if my parents had been more proactive in encouraging me to save for a car and to pay for one in cash instead of taking out a loan.

Wedding planning and school loans

Work had finally started to pick up quite a bit, which was good as Jeremy and I were talking about getting married within a year. We officially got engaged at the end of December 2007 and started planning for our wedding for May. As Jeremy was gearing up for another school semester of engineering classes, he realized that he was not going to be able to work and juggle school at the same time, so he left his job.

He was not sure how he was going to pay for his classes and he looked into getting a loan with having me as a co-signer. I was nervous about it, having never had taken out a school loan before. Gratitude overtook me when the loan did not get accepted. We talked about it and decided to take some of the money that I had been saving for the wedding to pay for his tuition at the community college since it was soon to become ‘our’ money anyways. Thus was the start of paying for my Hubby’s education.

Do you want to read the rest of the story? Head here. 

(Photo credit With All My Heart Photography)

This post was shared at Simple Lives ThursdaysThrifty Thursday, and Friday’s Blog Booster Party. 

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About the Author

Hi! I'm Charissa. I was able to pay off all my debt, pay cash for my husband's education, and build up my savings-all because of using a budget. I love to share all the budgeting tips I've learned with you so you can have a successful budget too! Read more...

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