Debt-Free at Last

These days, just about of all of us are either looking for a way to make our dollar last longer or our debt vanish sooner – anything to better ride out the shaky economy.

Of course, it always helps to have a role model and this week, creditcards.com has a story about how a Wisconsin family managed to eliminate over $100,000 of debt, earning them the 2009 award for Professional Achievement and Counseling Excellence (PACE) from the National Foundation for Credit Counseling.

In 2004, Russell and Kandy Hildebrandt had almost $90,000 in credit debt and owed another $17,000 to a family member. With interest rates on the rise, the couple were having a hard time making even the minimum payments every month. Finally, the payments became so staggering, that they knew they had to change their ways.

Even though some of their friends recommended they file for bankruptcy, the Hildebrandts refused to go that route. Instead, they sought the help of a local credit counselor and developed a five-year get-out-of-debt plan, which required them to pay $2,000 a month toward their creditors – of half their monthly family income. For starters, Russell had to take on a second, part-time job, working late into the night several days a week.

The plan required them to do the following:

While at first the changes were grueling, within a couple of years, the family started to see their debt come down. And while it was hard, even the birth of their third child didn’t deter them from their goal. In their final year of debt repayment, they even got a shot at purchasing their dream home through a rent-to-own program.

The best news is that the family was able to pick up some new healthier financial habits, and learned to separate their wants from their needs.

The takeaway? At a time when most of us are scrambling to keep our heads above water, the Hildebrandts are sailing into the sunset, debt-free at last.

Photo courtesy of via Flickr.