How much debt have you paid off?: $129,000.
What was it for?: House and student loan.
From deciding to become debt free to making the last payment, how long did it take you?: The mortgage length was 19 years in total. The student loan payoff length was 5 years.
What age did you take on your first debt, and how old are you now?: I was 20 the first time I got something on layby. I was 29 when I bought our first house. I was 40 when I went to university. I was 48 when we paid it all off.
Did you do it alone or as a family?: As a family. But during all that time, we only had two full-time incomes for 5 years. We had 2 kids, and I got a tertiary training as well.
Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: We chose not to extend our house or climb the property ladder. We stayed in a modest house and became mortgage free at 46 and 48, respectively. At 40, I got a degree and trained for a hospital shift job. Good pay but hard work hours. The children were becoming teenagers. They had to save for their own class trips.
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?: The Sorted website. Firstly we banked with a Credit Union that provided a really good pay split system. So every pay was split into bills accounts, and all bills were paid automatically. That way, we were never behind. We could only spend what was left.
Did you keep an emergency fund while you paid off debt? If so, how much?: We always had a Christmas fund (we saved $20 per week), and a small savings fund of $2,000. Otherwise, we paid bills.
Did you have any setbacks along the way, and how did you overcome them?: Ironically, we paid the mortgage off, and then 10 months later, my partner was made redundant. So in all those years, we’ve only had 10 months debt-free and double income. We had decided to save for our first-ever European holiday. We had 3/4 saved in those 10 months debt free. Then we scraped together the last 1/4 during the next year and went anyway. Then being debt free, he could take the opportunity to build a business instead of work for someone else. And eventually, I could "retire" at 58 because I no longer wanted a stressful full-time job.
What tips/hacks could you share?: Pay split; bills come first. Use one income to live on. The other is for debt payoff or savings. Live like you are on the pension. We started life together in the 1980s unemployed. It was great training for living within our means.
Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: No. Just write a budget. Put aside the same amount each week and set the bills as autopayments. Don't do direct debit. Pay the same for electricity each month. Don't borrow for things you want. We didn't even have a credit card until we travelled overseas.
How did you stay motivated, and what was the most challenging part of paying off your debt?: I'm motivated by the numbers.
How did you celebrate making your final payment?: We immediately started saving to go overseas!
Was getting out of debt worth it, and what have you learned about yourself?: I'd rather have a modest house than a mortgage.
Will you ever go back into debt again?: No