First, I want to thank Adam for giving me the opportunity to share our financial struggles with you. As many of you obviously know, it’s hard being in debt. You don’t know where to start and you can feel overwhelmed with all of the options that you have. I hope to use this blog to detail our journey to becoming debt free. Obviously, with $150,679 in debt, it’s going to take quite awhile. I recommend that you subscribe to the blog via RSS so you do not miss a beat. You can also subscribe to the blog via email. You will not only get our story but also the great tips that Adam has that I have found very valuable over the past few months. Now on to our story…..
Let me introduce myself. My name is Chris and I am a twenty-something male married to an amazing woman. I work in the health care industry and my wife works in education. Over the past few years, we have racked up an astonishing amount of debt. Granted, most of the debt is in student loans but that is no excuse for our lack of sound financial discipline. Here is how our debt breaks down:
His Car Loan: $7,279.19
Her Car Loan: $8,673.10
His Student Loan: $66,070.88
Her Student Loan: $48,763.88
Best Buy Credit Card: $1,468.90 (0% until August 2010)
Family Loan: $16,500 (used to pay off credit cards)
Personal Loan: $1,922.68
GRAND TOTAL: $150,679
The car loans are at pretty low rates because they are at our credit union. If I had to guess, I would say that our cars are worth a little bit more than we owe on them. The student loans are also at very good rates. About $40,000 of the loans are private loans. Since general interest rates are low right now, they are too. The personal loan is also at our credit union and it is at 12.9%. That is our highest interest rate on our debt.
The loan that bothers us the most is the family loan. A family member offered to pay off our credit cards as long as we agreed to pay them back. It just makes us feel bad that we owe them this money and we cannot wait to pay it off.
So, there you have it. Our debt story is unique but I can imagine that there are people out there in the same type of position we are. Over the next few years, we hope to share with you almost every aspect of our debt problems. Every month we will also share with you our net worth and you can see firsthand how our debt is shrinking.
In the coming weeks we will be looking at different ways to get out of debt. We will probably look at Dave Ramsey’s program (I usually listen to him) the most. I am glad that you will all be here to witness out journey. Hopefully, we can encourage you to become debt free.