How We Paid Off $60K of Debt in 3 Years by Moving Abroad
The story about how we paid off $60K in debt by leaving the USA was featured in Newsweek!
A lot of people are in the same situation we were just a few years ago, swimming in debt, feeling hopeless and afraid. According to a recent article, nearly half of all Americans are sinking in further in the debt hole and they don’t know what to do.
Today, we’re writing a very different chapter of our lives, one that’s debt free and set on another continent, far from the United States.
Wondering how we got here? Here’s our story…
The American Dream, But at What Cost?
Like so many others, we lived what many would call the “typical American lifestyle.”
We had a nice house with a looming mortgage, two cars (one with monthly payments), and an ever-growing pile of credit card bills and a giant student loan.
But life, unpredictable as ever, threw us a curveball when health problems led to two major spine surgeries. I faced the daunting task of relearning how to walk (twice) and couldn’t drive for several months.
Being self-employed, this medical setback (and pain meds) meant I couldn’t generate any income during the recovery phase. Amelia, doing her best to keep us afloat, took on a local job, even though it meant a 40% reduction in pay.
Every month we were dreading the bills, watching our expenses rise while our income took a nosedive.
Rethinking Our Options
We started thinking about our options. What could we do to reduce our debt and our stress? How were we going to make it each month?
The first thing we explored was refinancing the house, but we quickly ruled that out. We decided it was too risky; what if I needed another surgery? What if Amelia lost her job? We also felt like refinancing would ultimately keep us in our current situation which we desperately wanted to change.
So, we made the tough decision to sell our home, using the money we made from the sale to pay off our high-interest credit card debts.
We sold almost all our belongings including one of our cars, and moved from our comfortable home into a tiny one bedroom apartment in Uptown Denver.
Those changes weren’t enough. We were still spending more than we earned each month. Plus, since I couldn’t get affordable health insurance, another major health issue could push us into medical bankruptcy.
We knew it was time to make a more radical change and consider leaving the United States.
Seeking a New Horizon
I started thinking, what if we moved to a country with a lower cost of living?
My research was shocking and surprising.
We realized that, if we moved abroad, our US-based income would not only cover our living expenses but also leave us with enough to pay off our debt.
And so we did! We moved with two suitcases each and our two adorable dogs to Cuenca, Ecuador.
We found a fully furnished, 3 bedroom, 3.5 bath house with a beautiful courtyard for just $800/month.
Moving to Cuenca was the best decision we made, especially for our finances. We went from spending over $4k per month to only $1,500 per month!
And the best part? We didn’t feel like we were missing out on anything.
Cuenca welcomed us with open arms. We immersed ourselves the local culture, dined out, learned some Spanish, and made a lot of new friends from all over the world.
Living in Ecuador also meant we didn’t need a car. That saved us so much money! No more spending on gas, taxes, maintenance, insurance, etc.
Plus, we loved the fresh, locally-sourced food available for a fraction of the cost compared to the overpriced Frankenfood sold in the U.S.
Though certain goods like electronics, cars, and appliances are pricier in Ecuador, the reduced costs in healthcare, utilities, housing, and public transportation more than made up for it.
In just three years, we went from using our savings and credit cards to cover monthly expenses to being completely debt-free and actually saving money for retirement.
Embracing a New Lifestyle
Our time in Ecuador also debunked many misconceptions we had. The world isn’t as perilous as we once believed and Ecuador isn’t as bad now as the international news media makes it seem.
Back in the United States, we felt like hamsters on a relentless wheel, exhausted but never really moving forward. Moving to Ecuador gave us a chance to pause, breathe, and reclaim our lives.
That’s why we love Ecuador and have such a deep appreciation for it and its people. It gave us our lives back!
However, we realize Ecuador isn’t right for everyone and the rise in crime has scared many people away. But that doesn’t mean there isn’t another low cost of living country out there with your name on it!
See Also: Expat Country Comparisons
You Can Do It Too!
While our story might seem unique, anyone can do it and millions of other people from the U.S. already have.
Moving abroad doesn’t mean you can never go back to your home country. You can easily move, get your finances in order, and if you ever feel the call, return home.
A good life is about choices, and sometimes, all you need is a change in scenery to turn things around.
See Also:
Watch Our Video About How We Paid Off $60K in Debt
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Hola todos! Welcome to my author bio page! Let's see. Where to begin... I grew up in the country on a lake outside a small Kansas farm town. As soon as I could, I got the hell outta there! Since then, I've lived and/or worked in Kansas City, Washington D.C., Denver, San Francisco, and Ecuador. I started and sold a dotcom, wrote a book about it, started a YouTube channel, and now I write a lot. Amelia and I have embraced the Unconventional Life and we want to help you do it, too!
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