Debt Free Kiwi #24

How much debt have you paid off?: I’m not sure. Except for our mortgage, we never had consumer debt. Now we have a credit card, but it’s paid off every month.

What was it for?: Our mortgage. Plus, you can include our credit card which is paid off in full every month.

What age did you take on your first debt, and how old are you now?: 25. For our first home.

Did you do it alone or as a family?: Together

Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: Regular income.

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?: We had nothing except common sense.

Did you keep an emergency fund while you paid off debt? If so, how much?: Yes. We still do, even though we are retired now.

Did you have any setbacks along the way, and how did you overcome them?: We kept shifting house and ‘starting again’. We are serial house renovators.

What tips/hacks could you share?: Work out your essential spending; such as food, mortgage etc. What’s left over is negotiable. Save 10% and live on the rest. When we started out, there was no KiwiSaver. I had a budget for food, petrol, and clothing. We were organised and had skills that we could employ to save cash. I could sew the children’s clothing, and some of my own. We started a vege garden straightaway when we moved into our first home. I like cooking and planned the meals.

Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: No

How did you stay motivated, and what was the most challenging part of paying off your debt?: A lot of the time I was not motivated as I had no spending money, and I still believe both partners need some, even if it’s only $10 a week. But I am grateful now, and the accountant doesn’t try to stop me spending, in a moderate way, to get what I need.

Was getting out of debt worth it, and what have you learned about yourself?: Yes, we are glad we never carried any unnecessary debt. It was hard though, I can’t deny it.

Will you ever go back into debt again?: NO.

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