Dont we all wish life were more like The Brady Bunch?
Two parents, both in their second marriages, could blend their families.
There would be comedic dysfunction, yet all would end well.
Jordyn, Dylan, Maria and Pete eat dinner at their home in Spring Hill, Fl. Pete and Maria managed to put their four kids through college while chipping away at their debt. Tina Russell/The Penny Hoarder
But reality is a much different show.
Plus, couples bring more financial assets and debt into asecond marriage.
Each person often has goals and spending habits they dont intend to change.
Pete and Maria Sbashnig knew all that when they got married in 2008.
No Interest Til Almost 2027?
Pete had been divorced for two years when he married Maria.
He had joint custody of his son and daughter.
Maria had been divorced for six years with full custody of her two daughters.
All four kids played sports, and the whole family would take trips for competitions and tournaments.
The sporting events brought the family together, but financially, they added up.
His 401(k) had almost six figures, so he thought he was doing pretty well.
But he didnt realize by how much.
Their total debt was $332,000, putting their net worth at a negative $244,000.
After looking at this number, I had an emotional breakdown, Pete said.
I personally felt that I was a complete failure.
I was in my mid-30s, already divorced once.
We were struggling to keep the new family together, and now it looked like we were bankrupt.
Maria knew shed made some financial mistakes, such as taking out an interest-only mortgage.
Still, she felt she was managing her finances well enough.
I had been on my own with my kids for six years, she said.
He came across a guy giving callers debt-payoff advice.
That guy turned out to be debt-free living evangelist Dave Ramsey.
So together, they set out to eliminate everything but their mortgages.
[Pete] approached it like, Were in this together.
They had $5,000 in cash, but they used all but $1,000 to pay down debt.
That made Pete anxious.
In the first couple months, they had setbacks.
But these troubles didnt happen all in one day.
How Teamwork Helped Them Crush Their Debt
Pete took side jobs to increase their income.
Maria cut the familys expenses.
She clipped coupons, cooked meals at home and limited school shopping.
He played offense, and I played defense, Maria said.
They paid off $65,000 in 17 months while making less than $100,000 per year combined.
The first year, we didnt eat out, Pete said.
We ate out once.
We got two pizzas.
We spent $19 on two pizzas.
They finally sold it in 2013 and started focusing on the last debt: their mortgage.
What About the Kids?
When Pete and Maria started paying down debt, their kids ranged in age from 8 to 14.
Needless to say, the change in spending was an adjustment.
But they made sure the kids had some skin in the game.
Their children all had to apply for scholarships.
Ultimately, a state program paid for 75% of their tuitions.
Pete and Maria supplemented the rest, along with housing and books.
Debt-Free Now So Whats Next?
Now, Pete and Maria travel and live with a freedom theyve never experienced before.
Shortly before they paid off the house, Marias employer cut her work-from-home hours.
The job change cut her income, but it allowed her to be at home even more.
It was a choice they wouldnt have even been able to consider before.
Pete and Maria hope their story will encourage others to work together to get stronger.
That was the same thing we found when we worked together.
Jen Smith is a former staff writer at The Penny Hoarder.
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