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Our Debt Free Journey

Joshua Hurtado has been driving for Uber Eats since August 2018. Joshua has also graduated with an Associates Degree in Paralegal Studie

Debt Free Journey

Debt Free Journey

The Decision

So, last night my wife and I made a big decision. We are going to get out of debt. I don't mean just paying the minimum payments on everything, we want this debt gone, and we want it gone relatively quickly. Part of our discussion was our "why?". It is important to have a why for everything that we do in life, and getting out of debt probably wont be any different in that regard. In fact, we will probably need to reflect on our "why?" a lot through this process.

We had a really good discussion on what our "why?" is. Perhaps my biggest why has to do with my wife's medications. We have been very blessed that she has good insurance that has covered the vast majority of her medical expenses. That being said, her and her family fight insurance to get them to cover needed medications. After factoring in that one of her medications cost about $1,000.00 per vile and knowing that she uses more than one of those in a month it can get costly and this is only one of the medications. I NEVER want us to not be able to afford her medication out of pocket should the insurance company not cover it for one reason or another. I also NEVER want us to be in the position where us having to pay for her medications will put us in financial danger.

Another benefit is that once we are out of debt we will be able to give so much more of our money to causes we support. I have really wanted to put my money where my mouth is and financially support organizations that share my values.

Perhaps the final big reason I have for doing this is that I would like to build wealth. I don't want to build wealth just so I can have nice things. I would love for my future children's college to be paid for without student loans or student aid. I want to send them to college and I also want to be able to leave them a HUGE inheritance!


Our Debts

We have been blessed enough that we already paid off our credit card. The card at one point had about a $5,000.00 balance on it (which was the credit limit). We have completely paid it off, probably a month or two ago (minus a few cents that shows up for some reason). There were also a couple of debts that were in collections at one point but, these were not much, less than $1,000.00 worth and have been paid.

So, we have a few remaining debts and they are as follows (numbers are approx.):

Social Security: $1,500

Car: $22,884

Student Loans: $28,000.00

We are going to be using Dave Ramsey's process for paying off our debt. Because we are doing the Baby Steps we will not be paying our debts off based on the interest rate, we will be going from the smallest to the largest. This means that we will start with Social Security, then we will move on to the car, then finally the student loans.

Debt Payoff Timeline

Debt Payoff Timeline

Timeline

Some quick information that will affect our timeline before I get into it. First is that we are getting ready to move from Washington State to West Virginia. We ran the numbers and we will probably be making about 30% or so less in West Virginia than we would remaining in Washington. We will also be paying less for our overall cost of living. We made a budget based on what we are projecting to earn, as well as what our projected minimum expenses are after we arrive. If all goes well we will have a good bit of money to pour on our debt after we get steady employment down there. So, taking everything into account, we believe that we can be completely debt free within about two years or so.

I intend to make this into a weekly series where either at the end of the week I will give an update on the progress we have made (or lack thereof). If I do not update at the end of the week then I will likely update at the beginning of the next week for the week previous.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2021 Joshua Hurtado

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