The Bathiche Family, Tarek and Evibeth

Age: Both 25.

Background: The Bathiches are stationed at Fort Meade, Md. Evibeth is an Army sergeant and Tarek is an Army staff sergeant. They earn $67,000 a year. They have two children: three-year-old Anthony and seven-month-old Sophia.

Where They Started: When the Color of Money Military Challenge began a little less than a year ago, the Bathiches were not doing well. They owed $27,600 on six different credit cards, were expecting a baby, and had just $1,500 in savings.

The couple admits that they were reckless spenders. When their debt first started to pile up, they consolidated $14,900 onto one credit card with a low interest rate. However, like many others who use this strategy, they then accrued an additional $12,700 on other credit accounts.

Goal: Pay off credit debt, build savings and establish college funds for their children.

Progress: The Bathiches have been able to pay off $23,100 of their credit card debt. The couple expects to pay off the remaining credit card balance of $4,500 by February.

They did have a few things happen to slow down their debt payoff. They attended a friend's funeral in Alabama.

"The money was supposed to go to debt," Tarek said.

They also started to eat out more than budgeted.

Challenge Highlights: Tarek also used the $10,000 in a re-enlistment bonus to pay off a big chunk of the credit card debt.

After Financial Boot Camp: The Bathiches should pay off their remaining credit card debt and stick to their budget. Once the debt is taken care of, I suggested that they aggressively pay off their car loans. Because they are so close to being debt free, they can now set up college funds for the kids. I'd recommend 529 plans for little Sophia and Anthony.

The Holmes Family

Age: Trenton is 39, Amber is 38.

Background: The Holmeses live in the District of Columbia where Amber's a federal paralegal specialist and a part-time makeup artist. Trenton is a tech sergeant and aircraft mechanic at Andrews Air Force Base. He's served 18 years in the military. The couple earns about $135,000 a year.

Where They Started: At the beginning of the Military Challenge, they owed $12,990 divided among six credit cards and two lines of credit.

The main financial obstacle is a second home. The Holmeses were able to rent the house but they couldn't get enough to cover the mortgage and taxes. Each month, they had to put up $1,000 in addition to the $1,800 provided by renters to satisfy the mortgage.

Amber has about $55,000 in deferred student-loan debt, and the couple has a home-equity loan balance of about $27,000.

Goal: Pay off consumer debt, cut expenses and stick to a budget.

Progress: The Holmeses have paid off roughly $12,100 of their debt.

They still have the second home but are awaiting approval for a short sale from their lender.

"I'm just ready for it to be over with," Trent said.

Challenge Highlights: The couple's accomplishments include saving almost $7,000 in both their emergency and life-happens funds. I'm also proud of the way the Holmeses reduced their expenses. They cut their cable bill by $121 and reduced their cell phone bill by $150.

"We have done pretty good with working within a new frame of thought regarding credit, so we won't be running out getting more credit," Amber said. Continued...