With elation, I must announce we are finally out of consumer debt!  No more credit card bills, no more car payments, no more personal loans or retail financing.

Last October, I listened to a series of CDs by John Cummuta. (I’ve written about debt elimination before).  By November, we were serious about finding our own accelerator margin and eliminating our debt. At that time, we owed close to $15,000 on credit cards and $7,000 on vehicle loans.

By September 1, 2008, we paid off $22,000 in 10 months. We attempted to pay off our debts the previous the year but kept falling back in to the buy now pay later trap. Looking back, the highest amount of debt we ever accumulated was in May 2007, over $20,000 in credit card debt and over $8,000 on our vehicles. With a steady accelerator margin we plugged away at it, month after month. We lived frugally, used coupons, sold items we no longer needed or used, took on second jobs, sold investments, and after all our hard work we can now proudly say we are consumer debt free!

We still carry a home mortgage and have a student loan in the amount of $10,000.  Our next steps are to tackle both simultaneously.  Begin over paying on our mortgage and dropping the bulk of our accelerator margin on the student loans.  Once the student loans are gone, we will build up our six month emergency fund.  Currently, we only have a $1,000 emergency fund as per Dave Ramsey’s recommendation–just enough to pay for any insurance deductibles or car repairs should something happen.

Now even with the economy in peril, we have found more security.  We’re now not at risk of losing our cars, defaulting on our credit cards, or ruining our credit score. With all those other payments out of the way we can focus on owning our home. I encourage everyone to find their own accelerator margin and pursue a debt free course!

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