How much debt have you paid off?: $260,000
What was it for?: House
From deciding to become debt-free to making the last payment, how long did it take you?: 13 years
What age did you take on your first debt, and how old are you now?: A student loan in my thirties
Did you do it alone or as a family?: Alone
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? I cashed up $10,000 of my retirement savings to put on the mortgage, which saved more than $10,000 on my mortgage repayments and enabled me to pay the mortgage off three years earlier.
What people, books, websites, podcasts, budgeting tools, debt trackers and resources helped you?: MoneyHub. Newspaper Article by Diana Crossman. Mortgage repayment calculators
Did you keep an emergency fund while you paid off debt? If so, how much?: Yes, between $3,000 and 5,000
Did you have any setbacks along the way, and how did you overcome them?: Yes. I would look at my target and get myself back on track. I trained myself when shopping to walk away, go home and think about it for 24 - 48 hours. I would look at prices and calculate how much it would cost per use. e.g. shoes $295. If I wear them 150 times it is $2 per wear.
What tips/hacks could you share?: Check out withdrawing some of your retirement savings to make a lump sum payment on a mortgage. Review your finances and debt regularly. Always aim to pay more on debt. Even a small amount over time makes a big difference and takes months off the life of a debt. Have goals.
Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: Having one debt in one place and paying an affordable amount off each pay and saving during the year so I could make the maximum lump sum payment on the mortgage allowable at the end of each year.
How did you stay motivated, and what was the most challenging part of paying off your debt?: Not purchasing everything I really desired. Going without stuff, not doing expensive things, e.g., buying lunch or coffee every day.
How did you celebrate making your final payment?: I went out for dinner! I also started saving for a holiday and my retirement.
Was getting out of debt worth it, and what have you learned about yourself?: Yes. It has given me freedom and security. I am disciplined, and money is a limited resource, and it takes time to think and plan how best to use it.
Small things become a treat, e.g. a takeaway coffee at the weekend is now a treat.
Will you ever go back into debt again?: I would say No. But I have discovered that life gives us the unimagined, unexpected hard places, and they can be very difficult to navigate out of. There could be a valid reason for borrowing, so if my life depended on it, then I would have to explore all the options.