Monday, June 22, 2015

Our Top Reasons for Becoming Debt Free Now


It occurred to me that I didn't go into complete detail on why we want to get out of debt in my post, Debt Free by May 2018. I shared our process of going through our budget and finding areas that we could decrease spending and increase debt repayment but I didn't really give the why. My husband and I owe just over $45,000 worth of debt. Our debt is comprised of mainly student loans and a loan from our recent time share purchase. We have been making additional payments to each of our of student loans for the last 2 years but finally decided earlier this month that we would make a plan and aggressively attack our debts. Based on the debt avalanche method which I talked about in this post, we should be out of debt in 35 months, that's just under 3 years. Today I'll share why we decided to become debt free and why now?

First and foremost it's our belief that we should be lenders not borrowers. Plain and simple we want to make ourselves available to assist those in need. To give when the opportunity is presented to us whether this is to our local church, charity, a friend in need, a crowdfunding campaign for a special project or just being a blessing to someone else. It pains us to see a need and not be able to meet it or have to wait to give because we're busy paying debt. We want to have the ability to give when we feel like it and timely. This belief comes from scripture since we are Christians and believe the bible is true and applicable to our lives today. Being in debt does not allow us to lend or give the way we would like to but instead makes us a slave to the lender, see Proverbs 22:7.

Next would be our belief that we should owe no man anything but love and at this time we owe quite a few people. Again another belief that's rooted in scripture, see Romans 13:8. Debt carries a certain weight to it. I know that when I owe someone, that what I receive in the form of income is not completely mine. I have to pay each of my creditors what is due to them prior to paying myself. I love this scripture because it really supports that fact that we shouldn't take on debt. Meaning if you can't afford it then maybe you shouldn't go into debt for it. I wish I would have caught on to this principle much earlier but I get it now. I should only have to owe people love not money.

The next 4 reasons are somewhat tied together, we want to get out of debt in order to prepare for parenthood, home ownership, emergency planning and our personal projects. It's our belief that the next 15-20 years will be some of the busiest and yet rewarding seasons of our lives. We'll be raising little ones, advancing further in our careers and passions and setting roots down. It's our hope that we'll be building a legacy for our family and that will require us being debt free. We may not be debt free when we start our family but we'll definitely be debt free shortly before or after our little one arrives. Our hope is that we can take our funds and invest in our family's future and not spend time paying off unnecessary debt with tons of interest. We may not have a house by the time we're debt free but if we apply our same payment method to our savings that we did to our debt then in the same time we could have more than enough to make a hefty down payment on a home or possibly buy a house with cash. I know you probably think we're crazy but I think it's possible.

I felt this was important to share since I will be providing you with updates on our journey to becoming debt free. I plan to share the good, the bad and the ugly but you have to know why we are doing this. Now what you know our top reasons we encourage you to support us and cheer us on. We're in this for the long haul and for those of you who are visual like me it's a recap our of top reasons in list form.

Our Top Reasons for Becoming Debt Free Now

  • We want to be Lenders and Givers
  • We don't want to owe any man anything but Love
  • We want to be able to save for our children
  • We want to be able to save for a house
  • We want to be able to save for emergencies
  • We want to be able to save for important personal projects 

I'd like to hear from you, if you have committed to becoming debt free then what's your why? If you haven't then what's stopping you? Leave me a comment down below and as always thanks for reading!