From Clearing Debts to Owning Our Dream Home: Our Story

Back in 2010, my husband and I got married while dealing with a heavy debt of over $45,000. With average earnings and my husband making just above minimum wage, owning a home in an expensive real estate market felt impossible. Fast forward less than six years, and we now own a two-bedroom house worth over half a million dollars, with that debt behind us. You might wonder how we managed to turn things around – well, we did it by taking one step at a time.

At different points, it seemed like giving in to our enormous debt was the only sensible choice. But instead of giving up, we tackled this financial challenge gradually. We first focused on paying off my car loan, which cost us $434 each month. Every month, we paid as much as possible until, after more than a year, we finally succeeded. This freed up funds, which we then used to pay off other debts.

Next, we turned our attention to my student loans. We started small, gradually paying off larger amounts, celebrating each small success along the way. Once we were debt-free, we began saving for our dream home. By gradually addressing our financial hurdles, owning a home became an achievable goal.

When we got married, we were living beyond our means in a luxurious neighborhood. To save money, we moved into a basic studio apartment once our lease expired. Living modestly for about a year and a half helped us repay our debt more quickly.

As our income improved, we moved to a townhouse. However, we continued to keep our living expenses low by sticking to a strict budget. Staying committed to our financial goals was challenging, especially with temptations, but focusing on the bigger picture kept us motivated.

Throughout this journey, owning our dream home remained our main goal. As tempting as it was to use our savings on lavish vacations, the dream of homeownership was more appealing. When our savings were enough for a down payment, we started house hunting. The bank pre-approved us for a larger loan than we felt comfortable with, so we chose a modest two-bedroom home in a family-friendly area. This decision stretched our budget, but it turned out to be the right move.

Now, we are proud homeowners, and our financial security is intact. I’m amazed at the progress we made in such a short time. When people ask how we went from being in debt to owning a home, my answer is always: one step at a time.

Are you on a similar journey to homeownership, working to clear your debt first? How do you stay motivated despite the odds?