CHARLOTTE, N.C. — Frank and Theresa Brown can flip through their finances now with pride. But not too long ago, they were more than $50,000 in debt. A chunk of it was credit card debt.
The Browns have good jobs. She’s a longtime teacher. He works for a major corporation. But they said the way they spent their money needed to change.
“The wants were way more than the needs,” Theresa Brown said.
“When we really looked at the cold, hard facts, we were really stupid with what we were doing with our money,” Frank Brown said.
They decided to take a class, the well-known program of Dave Ramsey’s Financial Peace University.
The Browns did some serious belt-tightening. They stopped buying anything they didn’t truly need. It meant no more traveling and no more eating out, which is where they said a lot of their money was going.
“Basically eating your way through your retirement,” Frank Brown said.
Just one year later, they were debt-free. They even paid off their house.
“How do you feel?” Action 9 investigator Jason Stoogenke asked.
“Relieved,” Theresa Brown answered and Frank agreed.
Financial advisor David Koppenhofer said the Browns' story is amazing.
Jason asked Koppenhofer what he tells people to help them get started, since tackling debt can be so overwhelming.
“It’s kind of like taking baby steps and eating an elephant one bite at a time versus looking at that large debt like Terry and Frank had and saying, ‘Wow, I don’t think we can ever do this,’” Koppenhofer said.
Not only did the Browns do it, they’re now teaching others at Matthews United Methodist Church.
“We’re seeing the impact on other people. It’s a gift,” Theresa Brown said.
Their son is following in their footsteps. He’s 21 and in college but with no student loans, no car loans and no credit card debt. He’s also already saving for retirement.
“It was more important for me to live financially secure or financially free and be more independent than necessarily be kind of a slave to the lender,” he said.
How to start paying off debt:
- Make a budget: List your expenses. Include donations and savings.
- See which expenses you can trim (usually entertainment, travel, etc.).
- Save $1,000 for unexpected expenses.
- Identify the smallest debt (credit card, student loans, auto loan, etc.).
- Put all effort into paying that one off.
- Save 3-6 months of living expenses.