Debt Free Kiwi #14

How much debt have you paid off?: $180,000.

What was it for?: Mortgages.

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

What age did you take on your first debt, and how old are you now?: 24 years old at first debt. Debt-free at 40 years old. I’m 54 years old now.

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

Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: We only had my husband's income, including his extra Territorial Army income, as I stayed at home with our three children. He later went full-time with the army, which increased his income. We also took in flatmates before we had children.

Did you sell anything or receive cash gifts to contribute towards your debt payoff?: No. We did plant a big fruit and vegetable garden, which saved us a fortune on grocery bills.

What people, books, websites, podcasts, budgeting tools, debt trackers and resources helped you?: We first got serious about knocking out our mortgage after using Microsoft Money, a personal finance software program. It showed us how any small, extra payments would considerably shorten the length of our mortgage. Then we changed to Quicken software, which later became Reckon, and we still use it today. I wouldn't be without it, as it's a great reality check for future outcomes. Our main blogs are yours and Mr Money Mustache. Our main podcasts are Rational Reminder and Frances Cook (who also wrote a good book, Your Money, Your Future).

Did you keep an emergency fund while you paid off debt? If so, how much?: Yes, $2,000. Enough to quickly replace a washing machine or fridge or buy a very cheap car, as we had young children at the time.

Did you have any setbacks along the way, and how did you overcome them?: No biggies. We just got creative.

What tips/hacks could you share?: Grow it, buy it second-hand, borrow it, do without it, repurpose it, look after it, and then put the money saved into your debt and then into your investments. Also, always cook extra tea and freeze it, so there's no excuse to buy takeaways. Discuss what you and your partner need/want now and in five years, 10 years, 20 years, etc., and make a detailed action plan and financial plan for each step to achieve those goals.

Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: Highest interest rate to lowest.

How did you stay motivated, and what was the most challenging part of paying off your debt?: The hardest thing to deal with was having so many friends and family members pushing us to spend more, buy bigger, and build flasher. We just kept reminding ourselves how happy we were with our choices and our long-term plans. As a side note - we reached all of our goals and are now watching many of those people struggling with debt and anxiety due to their heavy consumer lifestyles.

How did you celebrate making your final payment?: We grinned a lot in relief and then happily planned out and completed our next goal of becoming financially independent.

Was getting out of debt worth it, and what have you learned about yourself?: The freedom of choice that came with being debt-free has been life-changing. We are very open with our children now about our financial journey and have noticed they are making more thoughtful, long-term plans with their spending and investing habits. We discovered we are quite strong in our determination to live our own lifestyle and were surprised at how grounded we became and at what actually made us happy. We definitely found contentment.

Will you ever go back into debt again?: In the big picture, hell no! But if life threw us a curve ball, we'd work out a fast debt repayment plan first.

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