A Couple Shares How Dave Ramsey Helped Them Pay Off $37,900 In Debt: 'My Husband And I Started Our Baby Steps Journey In November 2023'

Dave Ramsey is a bestselling author who created the baby steps formula for getting out of debt. It's helped many people, including one person in the Dave Ramsey subreddit. A Redditor shared her experience of becoming debt-free and paying off $37,900 in less than three years.

"My husband and I started our baby steps journey in November 2023," the 23-year-old wife explained. 

Most of the debt was for student loans and vehicle loans. However, the couple paid off their obligations by following Ramsey's advice. The Redditor detailed how the couple got out of debt and their new goal after getting out of debt.

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The Path To Becoming Debt-Free

Everyone has a different path to becoming debt-free, but all of those stories involve financial discipline. The couple practiced good money habits that helped them make significant progress with paying off their debt. 

One of the key factors was the husband going from a $70,000 salary to making $120,000 per year as a contractor in the same profession. Striving to pay off debt as quickly as possible can inspire people to grow their careers faster. That seemed to be the case for the husband, and the wife took notice.

"He busted his butt enough for the past month that we were able to pay off the remaining $10,000 of our debt and it feels like we are set up so much better going forward," she explained. 

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The Couple's New Financial Goals 

The young couple has good momentum after paying off significant debt, but they have two new financial goals. The couple's first goal is to pour money into their emergency fund until it reaches $36,000. The wife explained that they pay $6,000 per month in living expenses and want to save at least six months of living expenses.

She explained that her union is planning to strike in 2026, and they want to save extra money beforehand. The wife earns $90,000 per year. While a strike would impact her finances, the couple has put themselves in a better financial position. After getting to $36,000, the couple will make slower contributions to their emergency savings account until they reach $50,000.

The wife also said she is excited to pay off the mortgage early. They have a $590,000 balance, but it should get trimmed quicker in subsequent years. That's because the couple had been focusing on their $37,900 in other financial obligations. Now, that same money can be redirected toward the mortgage.

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The Couple Has A Bright Future

Some commenters pointed out that the couple has made a lot of progress while they are still young. Having financial discipline and getting out of debt at a young age establishes a high ceiling. The couple seems likely to maintain their good money habits, and that can help them pay off the entire mortgage sooner than anticipated.

The couple can continue to explore more career opportunities and grow their earnings since they are both in their early 20s. They are putting themselves in a good position to raise a large family if they desire. In the meantime, they are capitalizing on the lower overhead of having no kids by paying off a lot of debt. 

The wife also said that they are putting more money into their 401(k) plans, which can set themselves up for a good retirement. It goes to show how much success people can achieve if they build some initial momentum and start practicing good financial habits.

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