One of the benefits of “Going Tiny” is freedom from debt. However it is not as easy as it sounds. We have acquired more debt since we started this journey than we ever imagined. How did this happen? Initially we thought we would just pay for the tiny build with the proceeds we made from selling our current house. All we really needed to do is make a few repairs, paint some walls, add new carpet and call it a day. Were we ever in for a big surprise. Even though we did all we could, some unexpected and expensive repairs came our way. We had to call in a five experts to do the work.
Second, we didn’t think about the fact that in order to pay for our custom build, we would need to pay in advance. We had to find creative ways to do this. First we went to a bank to get a loan, right? Wrong! We were surprised how difficult it was to get a loan for a tiny house. We would qualify for loans but were denied when they learned the money was needed to finance a tiny house. If we were offered a personal loan, it was far less than what was needed. If the loan was approved the interest rates were outrageous. How in the world were we going to do this? God was looking out for us. The same day we had our last rejection we received some information in the mail about a special loan available to pharmacists. In a short time we were approved for more than we needed at a reasonable rate.
Third, we failed to account for the day to day expenses including our current house payment. Living check to check was a harsh reality.
The good news is, when our house sells, we will pay off a considerable amount of debt including our new build. Once we are living tiny, our expenses will significantly decrease. Right now, it is a little stressful. We have had our moments. One thing that keeps us going is to keep our eyes on the end goal. This is not always easy, but the encouragement comes at exactly the right time.
Who would have thought you would have to create so much debt to reduce debt?
Live Simply,
John and Barb
Boomers Go Tiny 