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How one couple wiped out a $125,000 debt
Market Watch ^ | 28 June 2014 | Quentin Fottrell

Posted on 06/27/2014 10:12:31 PM PDT by rjbemsha

Two weeks before Christmas of 2004, Kandy Hildebrandt opened a letter addressed to her husband Russ, at his request. The letter revealed that her husband had a personal loan of $17,500. They sat down to talk about it: Russ also had 11 credit cards totaling $89,000 in debt. “He handled the personal finances,” she says. “I knew we had several credit cards, but I was unaware of the extent of our debt.”

The finance charges on the credit cards alone were $1,593 a month – double their $750 monthly rent in New Richmond, Wis. The Hildebrandts knew they needed to change their lives. But unlike many people in their situation, they actually did.

Kandy, 48, and Russ, 52, celebrated five years being debt-free this week. They made their first payment on their debt management plan in March 2005 and their last payment on June 24, 2009. “After paying everything off with interest, we paid over $125,000,” she says.

(Excerpt) Read more at sg.finance.yahoo.com ...


TOPICS: Education; Religion
KEYWORDS: creditcards; debt; personalfinance
They did it without the wife working outside the home. Kandy: "I said, Honey, all you got to do is work like a dog and I will take care of the rest.” He did, taking a second "job after work, sweeping and mopping floors at the local grocery store and cleaning the bathrooms" and sleeping in his car, even in Wisconsin winters. Kandy: "We’re home educators. [Our twins] are two of the most contented people. There wasn’t a clothing budget to keep up with all their peers." Upshot, they paid of the debt early, in four years and four months.

Faith saw them through. Kandy: "We are Christians ... Even though we were strapped financially, we never quit giving at our local church."

1 posted on 06/27/2014 10:12:32 PM PDT by rjbemsha
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To: rjbemsha
Hillary and Bill: "They should've just gone to a conference and given a short speech! Voila, debts wiped-out!"
2 posted on 06/27/2014 10:16:49 PM PDT by 2ndDivisionVet (The most dangerous man to any government is the man who is able to think things out for himself.)
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To: 2ndDivisionVet

.


3 posted on 06/27/2014 10:19:16 PM PDT by doc1019
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To: rjbemsha
MarketWatch: Last night, you had a big celebration.

Hildebrandt: We had dinner out.

MarketWatch: Where did you go?

Hildebrandt: It’s not too extravagant, but it’s what we like: Pizza Ranch.

This tells me it is a true story. People often think "once I get out of debt, I'll splurge and take a vacation" or some such thing. No, not if you actually do it. I once charged too much on a card due to an emergency, and had to stop and do nothing until it was paid off. By the time it was paid off, I valued that zero balance more than any other reward I could have given myself. the zero balance was the reward. And I have never gotten into trouble again.

4 posted on 06/27/2014 10:24:45 PM PDT by Vince Ferrer
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To: rjbemsha
He slept in his vehicle at night to save on gas, so we would have the money we needed for food. That included the winter time and the winters [here] can get pretty harsh. A lot of that was determined by how the gas prices were rising.

Gas prices are a killer. I remember as a family for cheap entertainment we would take a drive in the country. Just a trip through Amish territory where we'd maybe purchase a few slimjims and some juice boxes.

Can't do that anymore.
5 posted on 06/27/2014 10:26:35 PM PDT by mmichaels1970
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To: rjbemsha
How one couple wiped out a $125,000 debt

Ugh, not another story about Bill & Hillary Clinton!

6 posted on 06/27/2014 10:29:58 PM PDT by nickcarraway
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To: rjbemsha

and they got out of debt without a govt bailout!

I’m sure big businesses, Obama and the GOP will be knocking at their door for advice...


7 posted on 06/27/2014 10:37:36 PM PDT by RginTN
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To: rjbemsha

Good story bump


8 posted on 06/27/2014 10:41:24 PM PDT by GirlShortstop (Every person has a duty to seek and serve the truth. Abp Charles J. Chaput, OFMCap)
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To: doc1019

Live on 1 salary if you can. Save the 2nd one.
Example: $20,000 take home pay for the 2nd salary x 5 years = $100,000 savings. Invest in stocks while doing this. In 10 years $200,000. Most people spend all they can. When I got a new job several years ago I got a $11,000 pay raise from the last one. I thought I was going to be rich. Yep I kept spending that extra money.

I did manage to save some and currently invest in stock which has helped a great deal.


9 posted on 06/27/2014 10:41:35 PM PDT by minnesota_bound
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To: rjbemsha

they only did 1/2 of a hillary speech?


10 posted on 06/27/2014 10:53:27 PM PDT by Secret Agent Man ( Gone Galt; Not averse to Going Bronson.)
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To: Vince Ferrer
By the time it was paid off, I valued that zero balance more than any other reward I could have given myself. the zero balance was the reward.

With many credit cards charging 18 percent interest or more there is a huge reward in achieving a zero balance.

If anyone doubts me all they have to do is read that line on their credit card statement that tells how long it will take you to pay off your balance if you make only the minimum payment each month. Then a simple calculation will tell you how much that credit card balance is costing you.

11 posted on 06/28/2014 1:56:19 AM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: rjbemsha
Before I left the workforce outside of my home

Isn't that a odd way to phrase it? The lady left the workforce as it is commonly understood, period.

12 posted on 06/28/2014 4:43:12 AM PDT by OldPossum ("It's" is the contraction of "it" and "is"; think about ITS implications.)
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To: rjbemsha

1. They got in serious financial trouble so they decided to have another baby. (??)
2. How did he run up $89k on credit cards? What did he buy with it? If he can’t answer that, he’ll probably go right back to it.


13 posted on 06/28/2014 4:53:15 AM PDT by AppyPappy
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To: OldPossum

You would have to be a very superficial person to value the contribution of a person, especially a mother, only by the financial compensation that accrues to it.

God bless this couple. They must have loved one another and their children very much. They were foolish to accrue all that debt, they were wise and prudent to crawl out.

I had a similar situation. I made (and make) more than enough to live on, but I left our finances up to may wife because she was a bookkeeper before we were married. After ten years our finances were so screwed up, and we had so much debt, that I had to take over. It only took a few months to get to the point were we could we pay our bills and live reasonably, and after about four years, we were actually “flush” enough to add an attached garage and buy new cars. We would never have done that if I had left my wife in charge of our finances.


14 posted on 06/28/2014 4:57:02 AM PDT by Lonesome in Massachussets (This is known as "bad luck". - Robert A. Heinlein)
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To: rjbemsha

This was a very inspiring story.


15 posted on 06/28/2014 5:09:20 AM PDT by wintertime
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To: Lonesome in Massachussets

Read what I wrote again. I didn’t say that what a woman does at home is not important, I just pointed out that it was oddly worded since “workforce” is commonly understood to be the “outside” employment for which one is compensated. Perhaps you don’t grasp that piece of semantics.

And I don’t kindly to your insult, either.


16 posted on 06/28/2014 5:14:15 AM PDT by OldPossum ("It's" is the contraction of "it" and "is"; think about ITS implications.)
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To: rjbemsha
I'm retired and the other day my wife came to me and said "honey, we need to become a two income family again."

I said "sweetheart, I agree but don't you think you're a little old to take on a second job?"

17 posted on 06/28/2014 5:26:21 AM PDT by Hot Tabasco (By now, everyone should know that you shoot a zombie in the head. Don't try to reason with them...)
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To: Lonesome in Massachussets

I’m with you. Why posters here have to trash and diminish this couple’s achievement is beyond me.

How did they incur that much debt? One charge at a time. I’m not being flippant. She answers the question in the article. Like so many families, they lived beyond their means and covered daily life with plastic. They had a skewed view of what necessities are. It’s amazing what happens when we experience a real paradigm shift in our thinking. The interviewer mentions “reasonable” temptations. She responds “Needs and wants are very subjective”. A lot of power in that simple response.

As someone who has gone through something similar, I can guarantee they will never go back into debt. We had a small business go belly up, owed the KGB..er..IRS, and state taxes. Had a couple of car loans, medical, etc. No credit cards, thank goodness. That totaled north of 100K. We had one income of less than 50K. We paid it off in about 4 years (thanks Dave!) and will NEVER go back. Our income more than doubled as we worked through the debt. I truly believe that God sees someone being good stewards and provides more resources to manage.


18 posted on 06/28/2014 5:26:24 AM PDT by brewer1516
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To: Hot Tabasco

LOL!


19 posted on 06/28/2014 5:42:24 AM PDT by silverleaf (Age takes a toll: Please have exact change)
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To: OldPossum

I apologize, sincerely and without reservation. I did not mean to imply that you were the kind of person who did not value the contributions or those whose labor is outside the “workforce”.


20 posted on 06/28/2014 5:43:36 AM PDT by Lonesome in Massachussets (This is known as "bad luck". - Robert A. Heinlein)
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To: rjbemsha

“They (the daughters) are so content in their own little world. There was always food on the table. We’re home educators. They are two of the most contented people.”

Well isn’t this something - maybe you parents out there don’t need to keep up with the Jones’ after all to have HAPPY KIDS. Maybe having mom (or dad) home full-time (and both living together, of course) is ENOUGH for kids. Maybe you’re being scammed by society. Maybe even, for heaven sakes, you could live in an apartment, rather than have both parents work and leave the kids with a nanny (or worse).

Maybe there are OTHER OPTIONS worth considering...maybe kids just want PARENTS to be around.

(sorry, I just work with hot-shot moms every day and hate to think of what their kids go through)


21 posted on 06/28/2014 6:05:03 AM PDT by BobL
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To: AppyPappy

After busting his arse working two jobs and sleeping in his car during winter ... I think maybe he learned his lesson.


22 posted on 06/28/2014 6:32:06 AM PDT by al_c (Obama's standing in the world has fallen so much that Kenya now claims he was born in America.)
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To: rjbemsha

They cheated. This free-spending couple had an unlimited supply of hash browns, making “austerity” pretty easy. For all we know they sold extra potatoes they couldn’t eat to local all-night diners.


23 posted on 06/28/2014 8:26:40 AM PDT by BCrago66
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To: Hot Tabasco

You got to give her credit for her ambition. ;^)


24 posted on 06/28/2014 8:36:08 AM PDT by stevio (God, guns, guts.)
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To: Lonesome in Massachussets

Thank you. I owe you an apology too for getting my dander up with that last sentence. Uncalled for.

I would add in affirmation to what you wrote, that I think that the work that homemakers do is of immense importance to the economy though it doesn’t show up in the GNP. These women—and most of them are women—contribute hugely to this country. I saw first-hand how hard my mother worked and I see today that my wife contributes a lot to this household.


25 posted on 06/28/2014 9:41:11 AM PDT by OldPossum ("It's" is the contraction of "it" and "is"; think about ITS implications.)
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