The Thrifty Couple Shares How To Get Out Of Big-Time Debt
Twin Falls, Idaho (KMVT-TV) Alex and Cassie Michael are "The Thrifty Couple," but they weren't always so thrifty.
In fact, they had to take out a loan while they were on their honeymoon so they could check out of their motel. And their less than thrifty ways went on for a while after that.
Alex Michael says, "We woke up one day, my wife was expecting, a number of years after we had got in over $100,000 of debt. We knew we were in trouble. We were going to Payday Loans, we were doing all these things, we knew we had to do something."
It took a total of seven years, but they managed to pay off their $100,000 debt. In the first three and a half years, they only paid off $15,000. But after changing their strategy, they managed to pay off the remaining $85,000 in the same amount of time.
Cassie Michael says, "We actually have what we call a spending threshold. What that means is that him or I wouldn't spend over a certain amount without consulting our spouse, and saying, 'I want to get this new pair of shoes, and it's $30. What do you think?'"
The Michaels say that the three things you need to do are communicate about your finances, be intentional about what you spend your money on, and be accountable to each other. They also say you can typically save about 50% by using coupons, but you have to make sure they're coupons for food that you'd buy anyway, and that those foods can be healthy, as well.
Alex Michael says, "No matter where you're at, start doing small things. And as long as you're intentional, you will see a huge change the next few years of your life, no matter what your financial goal is."
May 31, 2012.