Debt Free Kiwi #28

How much debt have you paid off?: My husband and I have paid off $118,500, not including our house.

What was it for?: 

  1. Student Loan - mine - $33,000

  2. Car Loan - so stupid - ours - $17,000

  3. Business Loan - ours - $60,000

  4. Silly GEM card and associated fripperies - around $6,000?

  5. Credit cards - around $2,500 - we had 2-3 cards, but never a high value/limit

From deciding to become debt free to making the last payment, how long did it take you?: 5 years!

What age did you take on your first debt, and how old are you now?: 18+. I am now 36.

Did you do it alone or as a family?: With my partner, now husband.

Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: All of the above!

Did you sell anything or receive cash gifts to contribute towards your debt payoff?: Not specifically for the debt payoff, but I regularly sell items no longer in use for cash. Any cash gifts we previously put towards debt, but now these go towards shares.

What people, books, websites, podcasts, budgeting tools, debt trackers and resources helped you?: 

We started with The Barefoot Investor
Your podcast (The Happy Saver) is my fave. Always waiting on Wednesdays for it to update on Spotify.
She's On The Money podcast
Property Academy podcast
I used to listen to Dave Ramsey (The Ramsey Show) when we were aggressively paying down debt.
It's No Secret podcast
Frances Cook (Cooking The Books)
Mr Money Mustache
Frugalwoods
Sorted.org.nz
So many books and podcasts!

Did you keep an emergency fund while you paid off debt? If so, how much?: We started an emergency fund in 2019 of $9.000. But now it is just part of a pool of savings of $40,000 (some of which we will put towards a deposit for our house). But we will keep 4-5 months worth of emergency savings after we buy a home.

Did you have any setbacks along the way, and how did you overcome them?: Our business wasn't always profitable - we started a gym in 2017. Some hard discussions with my husband were had about cashflow and whether it was worth continuing. We are on the cusp of selling the business for $85,000. Definitely a lot of getting on the same page with my hubby. It was tough, but I wouldn't call it a set back.

What tips/hacks could you share?: Paying yourself first.

Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: Yes. Smallest to largest. Coincidentally, our highest interest rate was also our smallest debt.

How did you stay motivated, and what was the most challenging part of paying off your debt?: Keeping up to date in the personal finance conversation on social media and via podcasts is how I stay motivated. Also its great to see tangible success when you pay off a chunk at a time.

How did you celebrate making your final payment?: We haven't yet!

Was getting out of debt worth it, and what have you learned about yourself?: Absolutely. I have learned that I am good with money, I am good with numbers (despite family and myself making me believe that all I would do with money is spend it). And I can achieve a lot with a little.

Will you ever go back into debt again?: Maybe? But only to leverage for property investment as part of our overall investment portfolio!

Debt Free Kiwi #29

Debt Free Kiwi #27