How much debt have you paid off?: We've bought and sold properties over the years, so it's hard to keep track of exact figures, but we've taken about $2,023,000 in mortgage debt, plus $80,000 for a business purchase and borrowed a total of $150,000 from my mum. After the sale of our Tauranga rental property, our mortgage debt is down to $1,208,000, with no business loan and only $75,000 left to pay my mum back which means we've managed to pay back $970,000 of our debt.
What was it for?: Purchasing five properties in total. Three for investment, and two as homes for us to live in, with one now a rental property once we upsized to a family home.
From deciding to become debt free to making the last payment, how long did it take you?: We haven't managed to get completely debt free, but we've decided we'd like to be completely debt free in 10 years' time, by 2033.
What age did you take on your first debt, and how old are you now?: Aside from a student loan taken in 2018 by myself at age 18, it would be when we purchased our first rental property in 2015 when I was 25 and he was 28.
Did you do it alone or as a family?: As a couple.
Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: The rent helped to pay it off, which also covered the rates, insurance and any minor maintenance required. My work paid off my student loan, as the minimum repayment was deducted each pay.
Did you sell anything or receive cash gifts to contribute towards your debt payoff?: We were able to speed up payment of mortgage debt by selling two properties between 2015 and 2022, which we earned a profit of around $462,000 before agents' fees.
What people, books, websites, podcasts, budgeting tools, debt trackers and resources helped you?: We haven't delved into financial advice until just recently when I came across an interview you did with someone regarding FIRE. I have since begun listening to your podcast quite regularly and have a few books and websites on my list, which seem to come up often: The Barefoot Investor. The Simple Path to Wealth. Mr Money Mustache. We also took advantage of the promotion you have with PocketSmith, and are getting started with tracking on that. Otherwise, we have been using good old Excel, although something you said is absolutely right: only the person who created the spreadsheet can really understand it. And even then, I've often forgotten what a rogue calculation was meant to be for...
Did you keep an emergency fund while you paid off debt? If so, how much?: We like to have a minimum of $30,000 in case of emergency.
What tips/hacks could you share?: Being conscious about what you buy: small savings add up over time and frequency. Reducing consumerism. Buying secondhand wherever possible. Keeping track of spending.
Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: Not really. Although, as we move forward, and with a few big payments coming our way, we will be prioritising paying down our mortgages. And, despite the loan from my mum being interest-free, we have decided we want to settle this as quickly as possible rather than use it to pay our mortgages down.
How did you stay motivated, and what was the most challenging part of paying off your debt?: Suffering from mild anxiety has made me afraid of the uncertainty of the future - will we even get to enjoy the fruits of our labour if we keep squirrelling it away? I want to strike the balance of working on our future security but also enjoying the day-to-day and living in the "now".
How did you celebrate making your final payment?: When it comes, we will probably go on a big trip overseas to celebrate.
Was getting out of debt worth it, and what have you learned about yourself?: It absolutely will be! The financial independence will allow us to strike the balance of living life now much more easily.
Will you ever go back into debt again?: Once we've paid it off... Maybe... to buy another house if we move. But ideally, no.
*Ruth here. Although not debt free, I was happy to publish their answers as I can see that they have had a bit of a mindset shift and are moving in that direction. I hope that absorbing FIRE content will go some way to speed this process up.