Back in 2010, my husband and I got married while carrying a massive $45k debt. Given our average incomes and my husband earning just above minimum wage, owning a house in one of the most expensive real estate markets felt like an impossible dream. But here we are, less than six years later, owning a cozy two-bedroom home that cost over half a million dollars, and that debt is now history. How did we manage it? We took it one step at a time.
At many points, the idea of giving up because of our daunting debt seemed like the easiest option. Instead, we tackled it bit by bit. We started with my car loan, which had a monthly payment of $434. Month after month, we paid off as much as we could, and after just over a year, we paid it off. This success allowed us to divert funds to other debts.
Next, we focused on my student loans, starting with the smallest ones and working our way up. Celebrating each paid-off loan, we gradually freed ourselves from debt. Once debt-free, we began saving for our dream home. Each small step we took made homeownership seem more achievable.
When we first got married, we lived in an upscale neighborhood, well beyond our means. To save money, we moved into a modest studio apartment when our lease ended. Living humbly for about a year and a half accelerated our debt repayment significantly.
As our incomes improved, we moved to a townhome but continued to minimize our living expenses, sticking to a strict budget. Staying committed to our financial goals, even when it felt like we were missing out, was challenging. But keeping the big picture in mind helped us stay focused.
Our dream home was always in our sights. Although it was tempting to use our savings on luxurious vacations, the goal of owning a home kept us motivated. Once we saved enough for a down payment, we started looking for houses. Although the bank pre-approved us for a larger loan than we were comfortable with, we chose a modest two-bedroom home in a family-friendly neighborhood. This decision stretched our budget a bit but turned out to be the right one.
Now, we proudly own our home and have maintained our financial security. I’m amazed at the progress we made in such a short time. When people ask about our journey from debt to homeownership, I always say: we took it one step at a time. Are you on a similar path to homeownership and looking to clear your debts first? How do you stay motivated while facing such challenges?