TIvo Helped my family get out of debt

It sounds crazy, but it's true!

Diona L. Reeves

Published: April 15, 2024

It was like any other day in 2010. My husband was out of town, training for a new career, and I'd finished my contract work for the day.

Needing to unplug for a bit, I turned on the TV and pulled up our library of shows on TiVo. (If you don't remember TiVo, it was the groundbreaking digital video recorder before streaming was a thing).

Little did I know that this device would be the catalyst for paying off $20,000 worth of debt.

The Awakening

TiVo's features weren't that different from our current digital setups. It was a large box you connected between your TV and your cable box to record shows. But it as also predictive. It knew the shows you liked and made recommendations based on its algorithms, like today's AI does with Netflix and YouTube.

Til Debt Do Us Part was one of those suggestions.

Hosted by Gayle Voz-Oxlade, this modest Canadian show taught couples how to live within their means and pay off their debt. No credit cards were allowed; everything the couple purchased was with cash only. They were even given jars to allocate their spending.

The new amount was usually much less than the current spending habits, so couples were forced to create a budget from the get-go and log whatever cash they spent daily.

If they ran out of cash in the jars before the end of the week, they did without.

I watched the first episode out of curiosity but was quickly hooked by Gayle's straightforward, common-sense approach. She was firm in her demands while still managing to be motivational.

I recorded more episodes for inspiration and quickly devoured them.

Our Debt Problem

Our family of four carried debt from years of money mismanagement and could never get ahead.

One little TV show put everything in perspective.

Not only had we refused to alter our spending habits—justifying credit card usage when we didn't have enough cash on hand—but we essentially started every month in the hole. Those credit card charges, while seemingly miniscule at the time, represented something bigger...

The decision to avoid paying for our obligations.

As years passed, what started out as a fairly negligible series of charges spiraled out of control. A good chunk of our monthly income went toward these past expenses, not toward the future.

A particularly eye-opening detail for me was the amount of credit we used for food and dining. Paying long-term interest is never ideal, but to accrue it for a meal or trip to the grocery store meant a significant loss of money over time, with nothing tangible to show for it.

The truth was harsh. We had sacrificed our future well-being for the instant gratification from using credit.

What about emergencies?

For some, this is a justifiable scenario. Things happen that you cannot predict or plan for. But using your credit cards as a safety net is not a beneficial approach. There will always be something unexpected to worry about, whether it's a home repair, cost of living increases, or an illness. At it's root, this type of spending (albeit often necessary) represents a failure to save.

When debt overruns you, things like down payments and emergency funds feel impossible. The first step, of course, is to admit you've royally screwed yourself with past indulgences. But that's only the beginning! You also have to train yourselves to sacrifice present enjoyment to pay off the past. Doing so is the only way to move forward with your life goals and build up enough savings to protect the future.

The Debt Payoff Plan

Something had to give, and while I was alone with the kids and my husband's out-of-town expenses were covered by work, I took the reins.

First up, our eating habits. With just three of us in the house, it was easy to justify grabbing fast food or buying pre-packaged meals. This did nothing for our wallets or our health, so I made a commitment to myself: I would buy more from the store and set a modest spending limit for each trip.

Like the activities Gayle created for the couples on her show, I turned the process into a challenge. I compared prices to be sure I was shopping at the right store for my weekly list. I watched for sales and clipped coupons. When I checked out, I'd hold my breath as the totals neared the preset mark. The game was to see how close I could come without going over. Like The Price Is Right on a personal level.

To my surprise, I hit the mark more often than not. And as the week went by, I got a better feel for pricing variances and the best stores to shop at for each item.

Step Two was a deep dive into Gayle's notion of money mindfulness. Spending without consideration is what got us into this mess, and I was determined to break that bad habit. To track how much was coming in and going out of each account, I reviewed our finances daily.

This was a great beginning, but it wasn't enough.

I also had to figure out the best way to use the money we did have to get us out of debt faster.

Snowball Method Meets Compound Interest

Dave Ramsey's snowball method pays off the smallest bill first. You can then use the money from that payment to pay off the next smallest one until you've paid off all your debt.

The alternative is to pay off whichever bill costs you the most in interest each month.

For our debt, I took a blended approach. First, I paid off a few nagging bills as quickly as I could. Because they represented a small sum, I felt gratification as each balance hit zero. This fueled me, and I used Quicken to calculate our debt and payoff timetables according to current interest rates.

If you want to see how bad your financial outlook is without some immediate changes, do this exercise to see how much interest you'll pay over time. Talk about motivation!

Not only was this data revealing, but I also used it to analyze different payoff strategies to see which debt payoff approach would cost us the least.

None of them were ideal, but I accepted they were necessary regardless of the sacrifice.

Despite our spending habits, our credit was still excellent because we hadn't missed any payments. I shopped around and was able to transfer our highest interest rate cards to lender with promotional rates, including a few with zero interest for 6 months. The trick was to be sure I paid off the card before the promo ended; otherwise, I'd be charged interest for the previous balances.

I save hundreds in interest during that timeframe and rolled those savings into another debt payment.

Life's Little Curveballs

Of course, life will always throw you curveballs. A key part of my success with this plan was the commitment to not use our credit cards for unexpected events unless we could so in a way that made financial sense.

Paying off the smaller credit cards demonstrated our commitment and debt management, even with a few outstanding bills to address. I'd also stashed away a small portion of income for years, choosing to have it automatically deposited in a savings account at different bank than our checking account.

This rainy day fund helped me stick with the debt payoff plan. Without it, the unexpected expense could have set us back months.

One of those scenarios came not long after we'd purchased our first house. We'd been living there a few months when the washer and dryer left by the previous owner stopped working. It was over 10 years old and did not make financial sense to repair. So, I shopped around and found a home improvement store with a promotional offer for new appliances.

There were two options to this deal. We could either finance the purchase for 6 months with no interest, or take an additional discount just for being a card holder.

When you have savings, you have options. I chose the discounted price and paid the bill off as soon as it came due.

Had we not had enough money in our account to cover the purchase, I would have considered the 0% financing option for six months. But there's a caveat: I would only do this if I could guarantee the bill would be paid off in full before the promotional period ended. This ensured I would not be charged interest after-the-fact for the purchase. (Not all cards institute this approach, but more do than you might think. As such, always be sure you understand the payment terms before committing, including whether interest can be charged from the date of purchase and/or if there are any pre-payment penalties.)

I viewed this unexpected cost with the same savings mindset I implemented with my grocery shopping. I could have paid for the new washer and dryer outright, but it wasn't the most economical choice.

It may seem overwhelming, but one of the best things you can do for your finances is start an emergency savings account. It doesn't even have to be much. Whatever you can afford (or are willing to sacrifice from your daily living expenses) while you still pay off your debts. This simple approach will build a nice cushion over time for emergencies. And, if the interest rate is decent on this account, or it is otherwise invested, it will growing steadily with minimal effort on your part.

A Positive Mindset

Managing money is a tricky thing, especially in today's economic climate.

If you are miserly, it will seem like there's never enough. But if you blow it as soon as you get it, you'll never have enough for your future wants and needs.

Money mindfulness, as un-sexy as it may sound, will eventually lead to a better financial state. And it may result in opportunities you never thought possible, like buying a home, going back to school, or starting a business.

The trick is to continue making smart decisions with your money while refusing to let it — or your current circumstances — control you.