Paying off debt is difficult for most people whichever way you look at it.
But what about if you had a ton of debt to pay off AND significant health problems which prevent you from working? In this situation, how would you even pay regular bills, let alone debt?
Staying motivated, keeping on track and working really hard to get rid of debt requires a lot of dedication and commitment to stay the course and see things through. This was especially the case for Abigail who blogs over at I Pick Up Pennies.
Abigail’s had her fair share of health problems, ever since she was diagnosed with a rare neurological disease that nearly killed her at age 19. She now suffers from chronic fatigue and depression. If that wasn’t enough to contend with, Abigail’s husband suffers from his own set of health concerns, with the treatment for some of his conditions costing thousands of dollars in medical bills.
Yet despite the odds, Abigail and her husband have successfully eliminated their combined debts and managed to get their finances back on an even keel. Abigail shares her story in this interview below.
Q1: What was your debt total at its highest and how did it come about?
This one’s hard to answer because we kept using our cards as our emergency fund. If that sounds horrible, understand this:
By the time I started my blog in 2008, I was on disability, and my husband, Tim, was on unemployment. We knew exactly how much we’d get and exactly how long we’d get it. Meanwhile, we had double-digit interest. Given the banks’ interest at that time, it didn’t make sense to create an emergency fund. Plus our health problems were constantly creating unforeseen expenses. We would have been borrowing from it every month, which means we would have been constantly funneling money back into it rather than at our debt.
The broad strokes of debt would be: $20,000 from Tim’s student loans, $5,000 in miscellaneous debt and $12,000 in oral surgery for him. We incurred another $2,500 when we moved to Arizona for his health.
Then there were a ton of miscellaneous medical-related expenses along the way. I think it’s safe to say we paid off at least $45,000 over four years.
Q2: What made you decide to pay off your debt?
Oh, that was never a question for me. Tim, on the other hand, assumed he’d never get rid of it. His health problems kept him from holding a job for more than a few months. And he was a spendthrift while he had money in hand.
I showed him that we could and would pay it off. Once he finally started believing that, he was pretty excited.
Q3: What challenges did you encounter whilst paying off your debt?
Health-related expenses were the biggest issue. After Tim got fired, we had to pay for his high-risk insurance, which was $500 a month. That and our $700 rent took up 1/3 of our income.
Then there were the few months where Tim was receiving medical therapy twice a week with co-pays each time. Plus the visits each time he got a MRSA boil, and we literally lost count of how many that was. I know it happened at least 30 times in three years, but I suspect it was more.
There were other expenses that we didn’t think about, like when steroid medications made him gain weight. He had to go up a pant size three different times. Even by shopping in outlet stores, we paid around $150 each time. On our budget, that was a huge deal.
Our health problems also mean that we eat a lot of convenience food. Sometimes, we have to pay a little more for items because I don’t have the energy to go to multiple stores to compare prices. (I do as much shopping online as possible to avoid those scenarios.)
Finally (but still notably) there’s my husband’s severe ADHD. Impulse control is not his strong suit. He’s gotten much better over time, but it’s taken ages for him to really get that he couldn’t buy every little thing. And when you have $1,800 left after rent and insurance, “little” is the operative word. We had fights because he kept buying Slurpies on his way back from the doctor.
Q4: How did you stay motivated in order keep going with your debt repayments?
Honestly, I never considered the possibility of giving up. I was raised to learn that if you have debt, you pay it off. I wasn’t sure when we’d succeed, but it literally never crossed my mind to stop paying or to declare bankruptcy.
That’s not to say that I was cheerful in the face of it all. I’m a depressive. I often felt lost and hopeless. There were times when I felt so overwhelmed that I’d literally hide under the covers. It sounds silly, but I felt safer there. And whatever works, right?
So I’d cry to get all the “this is so unfair” out. Then I’d get up and deal with it.
Q5: What was the biggest lifestyle change you had to make to succeed?
Before meeting Tim, I had been waiting for my disability application to be approved. I had been living on almost no money, and even once it was approved, it was $700. So I was used to living close to the bone.
Tim had to make a lot of adjustments though. For example, he couldn’t spend almost anything on his hobby, Magic the Gathering. The game cycles out a whole set of cards (around 300) each year. But the biggest change was taming his impulses. Not an easy feat for someone with ADHD. He had to realize that even small purchases add up. Hence the Slurpie arguments.
He also had to stop asking me if we could afford X, Y and Z. He didn’t know what we could afford, so he’d ask whenever he saw something. As you can imagine, this made him a holy terror at the mall, wanting almost everything he laid eyes on.
I finally told him that having to constantly say no made me feel like his mom. I told him to only ask about the stuff he really, really wanted. Then we would discuss it (and I would still usually say no).
Q6: How did you get the money together to pay off your debt in the end?
I had some old savings bonds I had forgotten about, so I cashed those in for about $1,200. I also still had some American Girl dolls from when I was a kid. Turns out they were now considered collectible and were worth a decent amount. That came to about $2,000.
Tim’s dad loaned him about $4,000 to pay off one loan. We paid back about $600 before Tim lost his job, at which point we had to stop. (Once we were financially stable, we bought a house earlier than planned because my inlaws were about to be homeless – they now live in our guest house. So I call it even.)
My mom lent us $6,000 to help with Tim’s oral surgery bill. We were paying her back, but she forgave around $4,500 as a wedding present. The rest was just about allocating money very carefully. We were able to slowly chip away at it. Towards the end, I was finally able to find a job I could do full-time from home, so the last $3,000 went very quickly.
Q7: What’s the best thing about being debt free?
It’s the peace of mind in the face of unexpected expenses. I no longer worry about how much it’ll set back our repayment. Instead, I’m just bummed that it lowers our savings account balance. Having the money when you need it is pretty darn spectacular.
For example, I totted up our unexpected expenses last year — from installing insulation, medical bills, home repairs and even needing a new car — and it was about $17,000. Suddenly, I felt a lot better about our relatively low bank balance. But the point is that we had the money. And this year’s $7,500 in home repair didn’t need to be financed.
Unfortunately, we will go into debt again toward the end of the year. Tim’s dental implants will be $25,000. We currently have $11,300. We’re on a major campaign to save, but even under optimal conditions, we won’t have all the money in time.
We’ll take out a medical loan at 0%, and we should be able to pay it off no later than February or March. Sooner if we end up getting bonuses again this year. .
Q8: What advice would you give to others trying to become debt free?
People will tell you not to get discouraged, but that’s silly. There are constant financial setbacks and wrinkles – even for healthy people with good jobs. So of course you’ll get discouraged. What matters is making sure that you don’t let it freeze you into inaction.
Go ahead and be bummed, freak out, rant on your blog/to friends/at the clouds in the sky. Whatever it is that makes you feel better. Accept that things suck, life is unfair and you have every right to be upset about it. Then shake it off as best you can, and go work around it.
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28 Comments
Thanks for letting me tell my story!
Abigail @ipickuppennies recently posted…Yay, I’m interesting!
Thanks! It definitely got ugly at times. But we made it through.
Abigail @ipickuppennies recently posted…Change of plans
Wow. Way to continue to push hard at paying off debt despite considerable adversity. Really serves as great inspiration on the days when it feels like my debt isn’t going down quickly enough. More importantly, congratulations!
Mario recently posted…To stay FRUGAL with money, you need to love the things you SPEND money on
Great job paying off so much debt!
Michelle recently posted…75+ Ways To Make Extra Money
Oops, I was trying to reply to this comment: Thanks! It definitely got ugly at times. But we made it through.
Abigail @ipickuppennies recently posted…Change of plans
Congrats on your debt payoff Abigail…not easy under the circumstances!
Tonya@Budget and the Beach recently posted…Why Kindness is Good Business
No, it definitely wasn’t. Hence the hiding under the covers thing. But at least I helped give some support to other people who were low-income and/or in debt out of necessity rather than choice.
Abigail @ipickuppennies recently posted…Change of plans
THIS is inspirational. So many times these stories are padded with six figure incomes. Don’t get me wrong, that too needs to be applauded. But for the vast majority of people, this is real life and shows that it can be done no matter your circumstances. Bravo, Abby. And I have to go check on the American Girl dolls now..
Femme @ femmefrugality recently posted…Need Inspiration? Try This.
Well, we still had a large number of advantages that helped us through. More of that in this post: http://ipickuppennies.net/2011/08/you-did-it-not-everyone-can/
Abigail @ipickuppennies recently posted…Change of plans
Those are some advantages. But you still had to choose to manage the resources you had properly. It sounds like you have a great relationship with you mom; for some those arrangements would be a sacrifice in themselves!
But still, that doesn’t diminish what you did. That’s a lot of discipline. That’s a lot of sticktoittiveness. (<—An obnoxious made up word. Apologies. :p) Maybe not EVERYONE can do it. I agree with you there after reading that post. But I truly do think that working towards it and trying can go a long, long way for the vast majority of people.
Femme recently posted…Failure = Opportunity
Yay Abigail!!!! Such an inspiring story. I’m so glad she worked through the depression and wasn’t stuck there. Debt can be so overwhelming. But with more and more sharing their stories it will motivate the next person.
Toni @ Debt Free Divas recently posted…Fear the Foreclosure and Create a Debt Free Stress Free Life
Thanks! Although the depression is actually lifelong. I’m bipolar II. But I’ve gotten better meds over the years that make day-to-day life far more tenable. Trying to struggle through debt while undermedicated was just… ugh.
And hey, if I have motivated/inspired anyone else then that’s just awesome!
Abigail @ipickuppennies recently posted…Change of plans
I like how Abigail’s mindset and how she approached this challenge in their lives. She’s very optimistic and determined to achieve financial freedom.
Jayson @ Monster Piggy Bank recently posted…House Update – Why I’m So Glad I Got An Independent Inspection
Haha, well you wouldn’t think so if you caught me on one of my “under the covers” days. But yeah there was a certain “this has to get done so let’s get started” mindset.
Abigail @ipickuppennies recently posted…Change of plans
Amazing job Abigail! You guys are really an inspiration to those in debt everywhere. Congratulations!
Wealth Gospel recently posted…Finding the Right Insurance Products to Protect Your Family
What an impressive accomplishment, especially given the difficult circumstances! And I love your realistic attitude. 🙂
Amy @ DebtGal recently posted…The $1,000,000 Challenge
Thanks! I’m big on the concept of realistic frugality. The tagline of my blog is “Frugality in an imperfect world.”
Even healthy people will have hurdles that keep them from being as frugal as they’d like. And then we all waste too much time beating ourselves up about our shortcomings. Which just wastes time and mental energy.
So these days my blog focuses on what I can realistically do, not what would happen in an ideal world. Because that’s just not where we live.
Abigail @ipickuppennies recently posted…Change of plans
Abigail, you are awesome! So many challenges, so much positivity!
Thank you for sharing
Dawn recently posted…90 Day Net Worth Report!
Well, as I said to another commenter, there were plenty of days I wasn’t remotely positive. It’s easier to seem sunny in retrospect. As recently as three years ago, Tim’s dentures broke and I crawled under the covers literally seconds after he told me.
But I’ve found it a lot easier to stay positive (with the obvious occasional dips into “Woe is me”) once I realized that I should stop focusing on what I wanted to do and instead worked with what I was able to do. It only took Tim like 5 years to pound that into my head.
Abigail @ipickuppennies recently posted…Change of plans
You are truly inspirational Abigial. It’s incredible how you were able to remain positive about paying off your debt throughout the whole experience. Most people can’t even hold onto that mindset about debt repayment even without ongoing medical issues.
Anum @Current on Currency recently posted…No Money Regrets: 7 Financial Mistakes to Avoid
Yeah, health problems definitely add wrinkles — literally and physically! I’m not sure I was positive so much as stubborn. But I’ll take the compliment!
Abigail @ipickuppennies recently posted…Change of plans
I love that you said you never thought about giving up! That’s awesome. It really does seem like the people who were raised to not have debt have an advantage. That’s how we raise our kids, so I hope they will grow up to feel the same way! Great story and congratulations! 🙂
Kalen Bruce recently posted…Big News: 5 Reasons That Prove I’ve Found the Best Web Hosting Company (Hint: It’s Not BlueHost)
Thanks! And yeah a good foundation of how to handle money and look at debt is integral to kids’ long-term financial success.
Abigail @ipickuppennies recently posted…Change of plans
Thanks for sharing your story. Most people would probably consider your accomplishment impossible!
Tre recently posted…But I Don’t Have A House In….
I can completely relate to actually hiding under your covers. It definitely feels like one of the safest places there is. Thanks for sharing your story!
Mel recently posted…Financially Savvy Saturdays #90
I love stories like this. So inspirational!
Kayla @ Shoeaholicnomore recently posted…Big Changes and What’s Going On
Thanks for sharing your story, Abigail. I can relate…my wife is on disability and I have health issues too, so our insurance and medical expenses eat up about 30% of our budget. It can be very discouraging when you’re not feeling well physically plus you’re down emotionally because of your financial situation. But your perseverance paid off and now you’re showing others that it can be done!
Gary @ Super Saving Tips recently posted…4 Valuable Reasons to Delay Spending
Oooof! I knew the dental work was going to be expensive, but $25K!? ouchie.
I am impressed that you’ve manage to continue to chip away at all of your bills and get to debt free. $17 grand in unexpected expenses in a single year is a lot. I’m upset about having to buy a new set of tires unexpectedly and they pale in comparison to your total.
Anne recently posted…Friday Jet Fuel #43