Matt and I have been working on paying off debt since we got married. It all started with his truck, then a credit card (from medical bills from having a baby), after that we moved to a car (because we had more kids), then a motor home (after I redo it we can go camping in it), and graduated with $11,000 in student loans (with a lot more to go).
Through all of this we have watched our finances pretty closely (and still will until we are debt free). But I can proudly say that we have paid off our second mortgage.
Just a little background, we bought our home in 2007 with an FHA loan (because we were first time buyers). The market was really high and crashes shortly after, which totally kills me. Because of the FHA loan it is pretty normal to have a second mortgage, but because of it we were stuck.
Until either the market changed (which it hasn't much), or we paid that off we couldn't refinance to a lower payment.
Enter a slight problem - Matt finished school in Nov. and student loans come due next month. We can pay them but only the minimum, which means no getting out of debt. There were only two real options, remove the excess from our budget (ie. cutting costs) or me find a job (I wouldn't make enough to do much, due to child care costs).
We used bonuses, anything extra we had for a couple of months, and the tax return to blast it out of our lives. We are through with that nasty second mortgage. Now we can't refinance and use the extra to finish paying off Matt's student loans.
No, we won't really have anymore money, it just gets to go somewhere else.
Last year we started listening to Dave Ramsey. He is a genius in my opinion (I tell Matt that Dave is the financial love of my life, Matt rolls his eyes). Matt and I are using his teachings to pay off all of our debt (except for the house, for now). I can't wait to do my debt free scream - even though I am scared to death to do anything like that in public.
Here is the check that we used to pay it off.
Here is the payoff statement for our mortgage.
Matt right after paying it off.
Me, right after paying it off.