May 11 2009

We’re debt-free!!!

It’s official! I called the bank to find out our car loan payoff amount, and she told me it was $0! I was expecting a few dollars left, but apparently the loan is all gone.

I’ll have to go to the DMV to pick up the title. Woo hoo!

Our 48-month car loan was paid off in about 18 months. By paying it off early, we saved about $800 in interest. We ended up paying about $910 in interest, though.

All told, in less than two years, we paid off $11,500 in car debt, roughly $10,000 in credit card debt, and have saved six months of expenses as an emergency fund. What?!

We did this by cutting our household expenses where we could, saving a portion of Shane’s paycheck and my blog earnings. 

Though we sometimes had different motivations, we both were committed to paying off debt and building up savings.

Next up: Saving for a down payment on a house. 

We’ll be able to take all that money we were throwing at the car loan and the normal car payment of $277 per month and any additional savings we can scrape together and start saving for a down payment and the closing costs. More on that soon!

38 Responses to “We’re debt-free!!!”

  1. Congrats!!!!!!!! best post I read thus far

  2. Awesome, congrats!!

  3. Wow — Congratulations! What an enormous accomplishment!

  4. congratulations!! that’s awesome!

  5. Congratulations! You’ve worked hard for this! Thanks for being an inspiration!

  6. woooot! That’s definitely something to be proud of, you get major kudos. <3

  7. Congratulations! It’s a great feeling, isn’t it? I know I was just on Cloud 9 when we became debt free!

    Now on to the FUN savings goals!

  8. Niiiiice! Congrats!!

  9. Yeah for you! That’s so great, and as Dave Ramsey believes, you have totally changed your son’s future for the better! My hubbie and I are only 1 debt away from being debt free other than our house. We think it will still take us another 2 years to pay off my student loan. On the bright side, though, we’ve paid off a mattress, a TV, a parent loan, 2 cars, and my husband’s monstrous college loans. You’ve inspired me lately to look for more “snowflakes” to add to our debt snowball. Congrats again!

  10. WOO HOO! BYE debt! Congratulations! I’m so happy for you guys! :D

  11. That’s great, but why do you have to go to DMV to get the title? Usually they just mail it to you.

  12. Congratulations Kacie! It’s a great feeling, isn’t it? We went debt free (other than our mortgage) almost 2 years ago. The best part was sucessfully saving up for and buying our last car outright. It sorta dumbfounded the salesman when we told him that no, we wouldn’t need to discuss his financing “deals.”

  13. CONGRATULATIONS!!! What a relief!

  14. Congrads what a milestone! And what a good example to Jonathan… ;^)

  15. Congratulations! That’s so great!

  16. I was confused at first about it, too. Turns out, if I want it TODAY, I’d have to go pick it up, but if I can wait a week or so, they’ll mail it. I can wait :) Good thing I don’t actually have to go to the DMV, what an unfun place.

  17. CONGRATS!! That is awesome. Are you all going to celebrate?

  18. Congratulations Kacie! What a good thing you have done, not only for yourself & hubby, but your beautiful little boy too. They learn by example. :)

  19. I celebrated by taking the car through the ‘fancy’ automatic car wash, lol. Turns out, Johnny doesn’t like that so much. Really loud!! As soon as we get a chance, we’ll need to put a coat of wax on it too. Not a huge celebration, but it works for me!

  20. Oh yeah!

    You’ll have that down payment in no time flat!

    (and, yeah, you’ll get the title in the mail in a few weeks! at least that’s how it’s always worked for me…)

  21. good job! i’m so proud of you and shane , sister dear.

  22. Congratulations! And I’ll bet that’s an amazing feeling of accomplishment!

  23. Congratulations!! Excellent job!

  24. Congratulations!! I am so proud of you guys! I can’t wait to see you!

  25. Yea!!!!!!!!!!!!!!!!!!!! I’m so happy for you — congratulations on all your hard work!


  26. Congratulations! Isn’t it great to write that last check! I still can’t believe we no longer have a mortgage payment!!

  27. Congrats!! That is the BEST news!

  28. Way to go, my friend! Thanks for inspiration of what can happen when you make and commitment and set your sights on debt free living. Now excuse me, I have to go set my goals!

  29. Congratulations!!! I hope you are going to call Dave Ramsey on Friday for the Debt Free Shout!!!

    Awesome job.
    You have motivated me to get back on track.

  30. Congratulations!!!! Also, where did you get the widgit [spelling??] that shows your progress on paying off the loan. I had to buy a car in October and am trying to keep up with paying extra–that bar graph on my blog might just be incentive!

  31. How awesome Kacie! I’m so excited to read this today and celebrate your success. You’ll be in home in no time and you are doing it all the right way! Again, congrats!

  32. Congrats! That’s awesome news. I’m sure you’ll have a good-sized down payment in no time.

  33. Now that you are debt free is where you really see your savings increase! The secret now is to stay out of it…congratulations!


  35. Dear Kacie, thank you for sharing this exciting news! It’s wonderful to hear success stories. We just need more of them. Congratulations!

  36. Kacie, congratulations! My wife and I are about 14 months away from being where you are as well. Nice job. You give us hope! Thanks.

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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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