How much debt have you paid off?: $325,000
What was it for?: Mortgage
From deciding to become debt free to making the last payment, how long did it take you?: 6 years
What age did you take on your first debt, and how old are you now?: My husband and I were 40 years old when when we took the mortgage. We are now 48 years old.
Did you do it alone or as a family?: I did it with my husband.
Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: Just 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?: Basic investing principles on-line and the Barefoot Investor.
Did you keep an emergency fund while you paid off debt? If so, how much?: Yes. Savings account of $35,000-40,000
Did you have any setbacks along the way, and how did you overcome them?: None
What tips/hacks could you share?: Be smart on spendings. Cut-off subscriptions not in use. Shop for better deals on broadband, gas and electricity providers. Consolidate all insurances.
Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: Increase your regular mortgage repayments by 5-10%, if you can, and/or make lump sum payments at the renewal date. Any extra amount can make a big difference!
How did you stay motivated, and what was the most challenging part of paying off your debt?: We want to retire early and be financially comfortable. Challenges on making small (priority) changes.
How did you celebrate making your final payment?: We celebrated with a lovely dinner on that same day we paid the last amount and spent the weekend in Queenstown 😊
Was getting out of debt worth it, and what have you learned about yourself?: Absolutely worth it! That I can do this fulfilling task of managing our debts efficiently with proper tools (information) online.
Will you ever go back into debt again?: No… But only for a very big investments if needed.