Back on New Years Day, I articulated this goal besides a few others in 2010;
Pay Down Outstanding Debt. This is so no-one has any outstanding claims on my work or my time. I find that in many ways, debt is slavery in another guise, so it is time to throw off the shackles as quickly as possible before Peak Oil hits hard. We have planned to pay down the rest of the loan I took out for the Solar PV by the end of April (approx A$7500), and then start whacking over 60% of my wage into the mortgage with a view of paying it off in 5 years. This is certainly achievable and Kim and I have calculated it down the dollar.
It is now mid May, and guess what? Today we have just paid off the last of the $30,000 personal loan that we took out over 5 years, in just 3! We saved swags of interest by paying it down early, and now will be putting the amount we had allocated in our budget for the personal loan straight on to our Mortgage. With only $2000 on our credit card due to my medical expenses, we also expect to have that paid off in a few of months. Once that is at zero, every single spare (within reason) cent will be going into our home loan. No more debt in 6ish years = a free and very happy man!
Oh, BTW. I now own this, which makes the air clean, with no electricity bill to worry about ever again. Even more savings to pay down debt!
I am so proud that Kim and I have achieved this goal, roughly on time. Paying down debt quickly is a very tangible benefit of a frugal and sustainable lifestyle.
Tree Huggin Momma says
Congratulations! I have figured it out and we will be debt free in 3 years. That is credit cards, car and home all paid for. And with the money we have been paying toward debt will have a nice chunk to purchase a new vehicle and install solar panels.
Well done Gavin and Kim
you have learned your lessons from your parents well
Chiot's Run says
Paying off debt is definitely a great thing. Mr Chiots and I are hoping to have the mortgage paid off by the end of this year (9 years after buying), or at least before we both turn 35 (which is next summer). I can’t imagine how wonderful it will be to not have to worry about that huge payment each month.
We’re going to start socking away the extra cash for a new car, a large chunk of land. Since we own our own business we’re also looking forward to taking more time off.
It truly will result in freedom from so many things: worries, “having” to work so much, etc.
Congrats, good for you for doing this, hopefully you inspire others to do it as well.
That is such a significant achievement. I hope that the reduction in stress makes life a whole lot easier.
It’s great to be able to pay off debt. Well done.
We’re looking at many years down the track before our mortgage is paid off. We cannot really cut any more from our budget, but we have managed to stop “borrowing” money, and now only pay cash.
If people cannot pay extra off their debt, the next best thing is to stop borrowing money. 🙂
I’m sure your health will be better for knowing you’ll have paid off your debts sooner.
Hooray! Well done, what an achievement!
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Congratulations. I’m sure it’s a weight off your mind.
Congratulations to you and Kim! That is such a wonderful feeling and accomplishment. What are you going to do to celebrate?? xo m.
Fantastic! Our only debt right now is our mortgage, but it’s a biggee, and it seems like we’ll never get it paid off :).
Your solar system looks awesome!
I’m hoping we can invest in an alternative energy system soon.
well done guys, we only have our mortgage but it just doesn’t seem possible at the moment to put any more money to that, one day hopefully that will change.
Hope you are OK… not posted since Mon!!
We’re going to head in the opposite direction for a while as we retrofit our house, but we aren’t going beyond our capacity.
cheap ink cartridges says
Congrats on owning this Solar system because it makes us free from electric bills and also decrease pollution rate.