This past week, I started Dave Ramsey’s Financial Peace University with my church. I wasn’t too excited to jump on-board because I’ve never really been a big fan of Dave Ramsey, but I decided I would give it a try.
For the next couple of months, I will be chronicling my journey through the program. Here are my thoughts on starting Dave Ramsey’s Financial Peace University.
How We Got Out of Debt…the First Time
Way back when my husband and I first got married (almost seven years ago!), I realized pretty quickly in our marriage that we were spending more money than we were bringing in. I am a total saver, and start hyperventilating at the thought of having less than $1,000 in the bank at any time, so living paycheck to paycheck and watching our credit card bills rise did not sit well with me.
We made it a point to dig ourselves out of debt–and dig we did! Slowly but surely. We used a combination of methods similar to Dave Ramsey’s Financial Peace University.
Over the course of 45 months, we paid off every single penny of our $45,000 debt– a combination of credit cards, student loans, and car loans. When I made the last bulk payment to my student loans, I truly felt free! And miraculously, after we were debt free, my husband and I were able to save enough money in one year to buy a house!
Then suddenly we found ourselves back in debt…
How We Got Back in Debt
After we bought the house, my husband decided to return to school to finish his degree–a lifelong dream of his. We only had a few thousand in savings and I didn’t feel comfortable draining it to pay for his school now that we had a house, so we took out a student loan.
Then, we found out we were expecting our first child! Yay! Except we both had two-door cars, making it extremely difficult and un-safe to shuttle a baby around. So I bought a used car… and because my husband did just as many daycare pick-up and drop-offs as I did, we ended up getting him a car six months later.
Suddenly, we had two more car loans.
And just like, we found ourselves once again in five-figure debt.
Turning to Dave Ramsey
We’re not in such a bad situation as last time. We do have a five-figure savings account as well, and if we’re to use Dave Ramsey’s method of paying off debt, I have a feeling we’ll be using a good chunk to pay off our debt.
It was really easy to get back into the “We need these cars, so we need to incur some debt.” And now, I find myself with two car payments that take up a good chunk of money every month.
As we start the process of living like no one else so we can live like no one else, I’ll be happy to chronicle our journey and the steps we’re taking to get back to our debt-free lifestyle thanks to Dave Ramsey’s Financial Peace University.
Have you taken Dave Ramsey’s course? Why did you decide to take it?