This Couple Did Something CRAZY to Pay Off Debt

– Next is an amazing story about a couple who did something radical, you guys. They sold their house to pay off debt. So let’s take a brief look at their story before I have them come on. – [Steph] We were poor when we were first married. – [Taylor] My card had got declined at a fast food restaurant one day. So we met in college. – We got married in October 10th 2009. I didn’t really have knowledge
about what that meant to have student loans, so we
lived off of student loans. – We went through
Financial Peace University within six months of being married. So we finally got on a budget,
and we’ve been budgeting for seven years. Well one of the things
we never talked about was how much debt we had. And I would try and present it to Steph and she’d just—brick wall. – Yup.
– Just, “No. I don’t want to know the number.” – Mm-hmm. I felt a lot of shame
because I was the one that carried the bulk of this debt. – With student loans we
had $137,000, and then last fall our daughter was
having trouble breathing: ended up being a three night
stay in the Vanderbilt ICU. And so that racked up about
$5,000 worth of medical debt. – Even though I was obviously
very present with my daughter, in the back of my mind I
was still thinking, oh no. I know this is going to be an expense, and we already have this
huge amount of debt. – A couple months later
we were looking at how we were gonna debt snowball this thing. What could we sell? What do we do? And then she came to me. – I just had this, I don’t
know if it was vision or what it was, but just this thought of, what if you sold the house? – That would leave us
with like $35,000 in debt. We could snowball that quickly. And that presentation of the question was what got me on board. – Wow. What an incredible story. I love these kinds of stories
where people do something that’s so difficult and so
different than what the world says they should do. And it pays off, literally. So here I brought in
Taylor and Steph to join me because I just want to
dive more into their story. So thanks, you guys, for being here. – Yeah.
– You’re welcome. – Seriously, I mean,
you all sold your house to get out of debt. – It’s crazy.
– We did. – It’s crazy, yes. Okay I want to dig into that
’cause that’s just huge. But first, majority of your
debt was student loans, right? – Yes. – And how much total again was it? – 137
– 137,000 dollars. So when you when you signed
up for student loans, I’m just curious, what was your thought as you were going into it? Like did you have any idea the
repercussions later in life? – Yeah so the majority of
those student loans were mine. (Rachel laughs) – It’s okay, Steph, you’re
gettin’ through it. (Steph laughs) – Yes, I chose to go
to two private schools for my bachelor’s and my master’s degree. And my parents owned a farm
and just couldn’t afford to pay for that. So that was the majority of our debt. I didn’t understand, I mean,
you’re brain’s not even fully formed at 18; let’s be honest. – Right, right, I’ve heard that. (Steph laughs) So I didn’t even understand
what that looked like later on in life. Once we got married we had to live off some of those student loans. – Yes, yes. – So we took out even more
than actually was was paid for just through education. – Yeah, totally, which is so normal. Like I’m hearing that more and
more people are doing that. And the repercussions of
it, they don’t know at 18. You guys were great because
you guys budgeted together pretty early on, right? – Mm-hmm. – So were you always on the
same page, do you feel like? – Ah no. (all laugh) My card got declined. We had no idea what we were gonna do. So we called my parents, and they bought us a Financial
Peace University kit, sent it to us. It took me a while still
to kind of get into it. – So you guys have been
married a little over 8 years. – Yes. – So what year was this? – This was six months in. – Within six months.
– Okay. So you’re newlyweds. – Yes. – Yeah, we’re newlyweds.
– It was 2010. – Don’t have any money, have no idea how we’re gonna pay for anything. – Mm-hmm. – Did you guys start
budgeting more together after Financial Peace University? – I did it after Financial
Peace University. I am the, let’s see, he’s the free spirit. And I am the planner. I
did a lot of the budgeting. – Yes. – At the beginning. We had some conversations,
but not until fairly recently did we get really serious
about where we were as far as debt snowballing goes. – Yes, because you guys budgeted together, but you weren’t necessarily
talking about the debt. Which I think is so interesting.
So what prevented both of you, because I heard
a little bit of shame because you were like, “All the student loans were mine.” You already just confessed to that. – Yes. – Was that a lot on your
part, or why didn’t you guys talk about the debt? – Any time I would bring
up debt snowballing and kind of starting
to tackle that amount, I would go to tell Steph the amount and she just, she would shut it down. Didn’t want to even know
what the number was. – Because why? ‘Cause it was so overwhelming? – It was so overwhelming,
and I’m the type that I want to achieve, and I was afraid; I just didn’t see an end. I didn’t see an end, and
if I can’t see an end, then I don’t even want to know what it is. I just didn’t want to know the number. And there was a lot of
shame associated with that amount for me. – Yes. Yeah. – So you guys shifted, though,
the conversation obviously. And so when that shift
happened, it really was a cause because of your daughter being in the hospital, right? – Mm-hmm. – So tell me a little about that. – Well, Annabelle got really
sick to the point where she was struggling to breathe. – Which is so terrifying anyways. – Yes, it was awful. – And how old was she? – She was 15 months, I believe. So we took her to the pediatrician, pediatrician sent us to
hospital, and then we eventually got transported through
ambulance to Vanderbilt. – All of these things were
happening, and we had started the discussion at that point of . . . – Selling the house. – Yeah. – Just came to the point where we like, we have to do something. We have to do something. We can’t just sit here
with this mountain of debt. – Yes, okay, so the discussion
of selling the house came up. – Mm-hmm. – Which is like A, amazing
of what you guys did. But it’s extreme, right? A lot of people
may be watching and thinking like, “I’m not gonna sell my
house to get out of debt.” But talk about the benefits of it. I mean talk about
when you first had the idea. I know one of you was not on board, right? You weren’t, right?
– Yeah. (Rachel laughs) Because it was so extreme
in your mind, or what was it? – Yeah, so the first time
she asked the question, she asked, “Do you want to sell the house and move to an apartment?” – You’re like, and no! (Rachel and Steph laugh) – Absolutely not. – ‘Cause you had two kids at this point. – Yeah.
– Mm-hmm, mm-hmm. – Yes. – So we were . . .we just
didn’t even talk about it. I shut it down. That’s not even something
we’re gonna talk about. – Yeah.
– Mm-hmm. – So a few months went by,
and she asked it again. – Yeah, I think it was
just the presentation of: hey, we have this much in equity. We had about $100,000 in equity. And we had, at that time, $137,000 in student loan debt. So if we sell the house, we
still would have some to pay off but that is a ginormous mountain that we would have conquered, and we can rent a place. And that’s when the wheels started turning, and I could tell Taylor was
like, “Okay, you know what; you might be onto something here.” – So when it came to actually
selling, I’m just curious, did it sell quickly? – Yeah. (Steph and Rachel laugh) – He’s like, yes. – Yeah, we were under
contract in thirty hours for 5,000 above asking. – Oh my goodness. Okay so when that happens,
and you get the offer in, you’re like: we’re about to sell our house. Emotionally, like, is that sad for you? ‘Cause I always think about
moving out of the house that you brought your babies home to? Is that the same place? – Yes. – All these memories, and
you know you’re about to do this amazing step, but
it’s an emotional thing to sell your home. – Mm-hmm. – So how was it? Were you guys
just like gung-ho about it or what? – We had to find a place to live. – Yeah. (laughs) – We didn’t have anything lined up. – I had an emotional moment
after we accepted the offer. But it was a moment because
I knew just what the ending would look like. And I knew at that point
that we just had so many confirmations of peace
throughout that process that that’s exactly what
we were supposed to do. – Okay, so what have been the biggest changes so far? – Well on March 7th we walked
out with a check of over $100,000, and that was incredible. (Rachel claps and laughs) – That’s so crazy. – We would just like check
our bank account and be like, oh my gosh this is awesome. We have this amount of money. (Rachel laughs) That will probably never happen again. Well, maybe we will. So we paid off a substantial amount. We completely paid off
Annabelle’s medical bill — – Wow. – which was over $4,000, and then we paid off, how much in student loans now? Probably $100,000 in student loans. – Mm-hmm. We paid off $105,000 total. – Okay, so I have to ask. Was it worth it? – Absolutely.
– A hundred percent. – A hundred percent. – And the relief you felt, is it everything you thought it would be? – I think it’s been more. – Yeah, we were looking at
20–30 years to being debt-free, and now we should be totally debt-free within a couple years. – I mean absolutely incredible. I’m not kidding you—the
amount of sacrifice you did, and just to think of how
quickly you’re gonna get out of debt, and your kids’ lives,
and everything around it. It’s really a
decision that not a lot of people want to make because they’re
scared and probably intimidated by the idea, and you guys
stepped into that even with a little bit of fear, maybe
even a little bit of uh. And you did it. For you guys out there
watching, maybe some of you are hundreds of thousands dollars in debt. And you’re sitting there
thinking, you know, it’s gonna take us 20–30
years to pay this off. And maybe you choose to make a decision from being inspired by
their story of like, hey, we are gonna sell our house to do this. Or maybe for some of you, it’s
just sacrificing lifestyle, but no matter who you are,
if you’re looking to sell your home make sure you
find someone in your area that you trust. And I have agent all over
the country that I recommend. And these agents can get you
close to five thousand dollars more at closing, and your
home is only on the market for 10 days on average. I mean, seriously, these
people are amazing. So make sure to click the
link in the description below. Well thanks, you guys, again, for being here and sharing your story. I mean absolutely incredible.

42 Replies to “This Couple Did Something CRAZY to Pay Off Debt

  1. I absolutely love this story! I feel like the ultimate confirmation that this was God's will was the additional $5,000 over asking which covered exactly what was needed for their baby's emergency. Love it!

  2. We wanted to sell our house but nobody wanted it because it’s in a darn flood zone. We still doing okay.

  3. Their house was only 100k? Damn I wouldnt have sold it. Just pick up an extra job, get someone to babysit like family members, and pay it all off within a few years.

  4. We sold our home just to get out of debt too!!! It was the best thing ever. Within 12 hours we had an offer and accepted it 😁. We were both 25 years old and now 2 years later we will be out of debt it 4 years

  5. Sometimes you have to get crazy to move the debt needle. At this point in my life I have developed 24 different sources of income coming in at any given time. The income doesn’t all pay out every month and sometimes the income is small (think a dollar), but it all adds up. It’s made a big difference in my monthly budget.

  6. We are selling our house to help pay off debt too! Easiest sale, my neighbor is buying it. After owning three homes…it’s time to rent and pay off the debts before we buy again!!!

    Congrats to the couple!

  7. I’m confused, did they inherit the house? I’m curious about their having the house to sell, period. How did they afford/not choose an apartment previously?

    Just a note that it’s a HUGE privilege to have a house, period, and I wish this was acknowledged in the broadcast. I mean, I’m glad they made this move but it’s not exactly a situation anyone their age in my life could relate to//seemed like an obvious decision. But maybe I just moved more than the average kid so it seems like less of a “big deal” and more an obvious necessity, again unless the House was in the family prior. Unpopular opinion perhaps, but a side to the story I’d hoped would be acknowledged.

  8. Keep in mind they had over $100k of equity in their home. How does a couple so young get that kind of equity so quickly? It’s not crazy or imaginative to use one’s most valuable asset to get out of debt. The wife is why many men go MGTOW. Losing one’s house is a lot to pay for a good looking spouse. I say that as no lender would give her a mortgage with that much debt. He had to own it and he could not get a spouse that good looking without her carrying such a financial burden.

  9. Congratulations for making it through everything! We didn’t do anything that drastic, but we did sell my husbands paid off truck to make us a 1 car family. He changed to night shift and I actually became a stay at home mom since summer was upon us. Between him giving himself a raise by going to nights and not paying daycare since I’m staying home we broke even on income at the time. On top of that I became the home economist and we actually paid off more and more even without me bringing in an income.

  10. You had that much debt in student loans but that much equity in the house after 7 years? That don't make sense.

  11. Why are they not thinking about the tax implications? How are they going to pay the tens of thousands in taxes?

  12. It's beyond depressing how many of these stories involve absolutely outrageous medical debt for no other reason than that the US just can't get it together with figuring out how to make healthcare affordable. And Americans are so used to it that the way it's presented in these stories is always so cavalier, because, you know, that's just the way life is. Literally the same procedures, medicine, and operations in other countries are a fraction of the cost- it doesn't have to be this way, and it shouldn't. But luckily they found a way to pay it.

  13. My question about this story is how were they able to get their house initially if they were very broke and with so much existing debt? Good thing they had that equity to use!

  14. Great idea! Only question I have is what about capital gains? How much did they pay in that? And yes, you can have $100K in equity after 7 years. Location is the key. We have a home that we have had for 10 years and probably could get that amount of equity for it. Located in Texas. It's a hot market out there.

  15. I love the story, but life is choices. This shows how the system is broke,. How did a couple with this much debt qualify for a home loan when they even stated they were poor when they got married? In addition, there seems to be holes in the story how did a home grow 100k in a few years, Since they aren't buying another home there is going to be taxes on the gain.

    This couple still doesn't get it. They are both wearing Apple watches and at 8:59 in the video the husband says they should be debt free in a couple years. I am not judging they can spend their money anyway they want, its just they still have no real plan. If they are following Dave's plan they should know the exact month they will be debt free. Following Dave's plan we knew the exact we were going to be debt free. I am afraid for them without a solid plan and direction they will stay in debt. Thanks for sharing Rachel.. Love your shows.

  16. It does not sound crazy to me, plus the place where their family scenes was recorded looked just perfect so what was the big sacrifice? What is crazy to me is that two young people may think to settle down taking up such a load like a mortgage and give life to kids as if it was the easiest thing in the world and should just get managed by itself. They seem naïf at the least. Not impressed but good luck

  17. She used the equity of his house to pay for her student loans? So she ended up getting out of debt and he lost $100k?

  18. Selling your home when you're in that much debt isn't a crazy idea or sacrifice, it's a no brainer when it's the largest liquid asset you have. This may just be a plug for the Ramsey endorsed real estate agents anyways.

  19. Imaging having to choose between your kid's well-being and going further into debt. America needs to fix its healthcare system.

  20. Congratulations to them and I applaud their bravery airing their finances on you tube for all to see and judge. I just found this channel and the stories are I inspiring but I think sometimes Rachel can be a little overbearing during her q&a. Thanks for the content .

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