How much debt have you paid off?: A good question! Estimate of over $700,000.
What was it for?: Student Loan. Owner Occupied home. Credit card debt. A considerable amount of rental property.
From deciding to become debt free to making the last payment, how long did it take you?: About two years.
What age did you take on your first debt, and how old are you now?: I recall being in credit card debt that I was scared of around the age of 22. I am now 46. I became debt free around 42.
Did you do it alone or as a family?: I got rid of my own debt myself, including my share of our property. Rental property debt I don't consider personal debt as it is in a company. I jointly get rid of it with my husband.
Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: I paid all my personal debt, including the mortgage, from my pay. Then 4.5 years ago, I became self-employed. Rental Property debt is paid down from self-employment and the side hustle that is a rental property.
Did you sell anything or receive cash gifts to contribute towards your debt payoff?: No
What people, books, websites, podcasts, budgeting tools, debt trackers and resources helped you?: Mr. Money Mustache and The Happy Saver are the best resources!
Did you keep an emergency fund while you paid off debt? If so, how much?: Yes, initially the recommended $2,000, but now it's over $100,000, particularly as I am self-employed. I find I need and want more of a buffer due to the changing taxation fluctuations.
Did you have any setbacks along the way, and how did you overcome them?: I really had to get over myself. I used Enable Me initially, which was costly but gave me the kick up the butt I needed to really change my habits. To get my financial plan, we used Sonnie at Fairhaven Wealth. He is a legend!
What tips/hacks could you share?: Do the deep work on yourself, and work out why you spend. Do the hard work looking at what you can change and what you will and won't accept reductions in lifestyle on. Work out your investment strategy with a professional and stick with it - that makes a huge difference.
Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: I was lucky that when I started tackling it, it was all mortgage, no other debt, as I had sorted out my credit card spending quickly, and thankfully my mortgage debt was not bad!
How did you stay motivated, and what was the most challenging part of paying off your debt?: Once I got into it, I was so focused it was good to see my debt reduce and my savings increase.
How did you celebrate making your final payment?: It took me a bit to realize I was actually there. I celebrated by doubling down on investing.
Was getting out of debt worth it, and what have you learned about yourself?: Being debt free is liberating. It gives you so many options for what you can do. These days I still get reminded of the difference between living paycheck to paycheck and being nearly F.I. every now and then. It's just so stark, and I now focus on knowing I am not lucky; I had a goal, and I worked really hard and went without achieving it. I think everyone can do this; they just need to have the right attitude and focus on it! No one is lucky, but we can all work hard on goals.
Will you ever go back into debt again?: No. I just don't see that as part of my future plan. I am happy to go without to get ahead!