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Debt free folks -- get in here (please)

Are you debt free?

  • Yes

    Votes: 63 43.2%
  • No

    Votes: 30 20.5%
  • Almost (will reach that goal in the next 48 months)

    Votes: 53 36.3%

  • Total voters
    146

krikzil

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I’ve always lived below my means. It enabled me to pay off my student loans in a few years. I drove my old car for years beyond when I could afford to buy a new one. I finally decided to buy a townhome when rents got nuts but I purchased far less than I qualified for. Same when I bought a home. I don’t buy designer anything and always pay off my credit card(s) each month. I keep my bills to one check. All this has given me the freedom now that I’m older to be able to travel and I plan to retire early.
 

Overitall

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I only have my law school loan. I have started paying it aggressively (and mad that I didn’t start sooner). It never bothered me before but over the Xmas break (and maybe after reading a few I paid off my student loan posts/stories) I decided bump that let me just pay this off. It is a lot but I can do it. I would love to have it paid in 12 months but 18 months is probably more like it....can’t wait!

My strategy is to cut off most of frivolous expenses and just direct all my income to my loan. Based on what I earn, I can do it as it isn’t more than my net and still leaves me with enough to live.
Update: Done in 16 months! Glory to God!
Screenshot_20210409-205431.png
 

Bella8933

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A few years ago, I went hardball to get debt free and got down to a very small student loan and no other debt.

Now. I have a remainder of that student loan, and have amassed the same amount of consumer debt as I did in student loans in total.

This is definitely a situation of living outside of my means. But i'm gonna ask advice of those who have crossed the finish line. What were your top strategies to get you over the finish line?

You have to cut up your CCs and start living on your income. I got in the hole maybe 30 years ago and that's what I did.

I had a nice house and a good-paying job but like many of my friends, I would spend on things I didn't need. :)

1) get the balance of allllll your credit cards and line them up in terms of which ones have the highest interest rates. Start paying that one off first.

2) Put a budget together of all your bills. Pay them and live off the rest for food only. So for about 4 years I was just POOR - not buying any more clothes but I had tons already - and definitely not going out with friends to dinner etc.

Just POOR in my nice house, just buying the cheapest food possible until I paid everyone off.

Then, I still lived poor .. because I saved a great deal of my income.

Itś hard but you can do it. Don't tell people though. They will be resentful that you are crawling out of debt ... and they are drowning in debt with no way out that they can see.

Jump ahead ... I took an early retirement a couple of years ago so I paid off my house and since I have no debt and my retirement income is generous I am living my best life .. right now!

I encourage all young women to plan ahead because I had so many friends that also made good money - more than mine even and some of them CAN'T retire. Not ever.

Why? I am not sure (I didn't want to dig) .. except obviously, their money is not right.

Itś one thing to be 25 years old and pinching every penny because you blow your money on crap ... and 65 years year old and STILL living hand to mouth. :/

Because things are not going to get better in retirement in terms of money.
 
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ProprioBella

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Lately, I have been obsessed with saving money, building income, paying off debts, just all things personal finance. I love breaking down my weekly budget to see how much money I can throw to savings, clearing my student loans, and paying regular expenses. It's so satisfying.

Me too! I’m always googling to figure out tricks how to pay my mortgage down faster. My plan is to be debt free by June 2022 (well, except my student loans of 16k which will get the minimun FOREVER).
 

ProprioBella

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You have to cut up your CCs and start living on your income. I got in the hole maybe 30 years ago and that's what I did.

I had a nice house and a good-paying job but like many of my friends, I would spend on things I didn't need. :)

1) get the balance of allllll your credit cards and line them up in terms of which ones have the highest interest rates. Start paying that one off first.

2) Put a budget together of all your bills. Pay them and live off the rest for food only. So for about 4 years I was just POOR - not buying any more clothes but I had tons already - and definitely not going out with friends to dinner etc.

Just POOR in my nice house, just buying the cheapest food possible until I paid everyone off.

Then, I still lived poor .. because I saved a great deal of my income.

Itś hard but you can do it. Don't tell people though. They will be resentful that you are crawling out of debt ... and they are drowning in debt with no way out that they can see.

Jump ahead ... I took an early retirement a couple of years ago so I paid off my house and since I have no debt and my retirement income is generous I am living my best life .. right now!

I encourage all young women to plan ahead because I had so many friends that also made good money - more than mine even and some of them CAN'T retire. Not ever.

Why? I am not sure (I didn't want to dig) .. except obviously, their money is not right.

Itś one thing to be 25 years old and pinching every penny because you blow your money on crap ... and 65 years year old and STILL living hand to mouth. :/

Because things are not going to get better in retirement in terms of money.

That’s my fear!

Do you mind sharing your retirment income or annual budget as a retiree? I’m about 20 years from retirement and my house will be paid off in 2 years. But I’m struggling to arrive at a realistic retirement target I should be aiming for (the number I use now is my current income, but I have about 25 years until retirement and a lot of runway to increase my income before then). I think my advisor’s suggestion is too conservative.
 

LazyDaisy

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Me too! I’m always googling to figure out tricks how to pay my mortgage down faster. My plan is to be debt free by June 2022 (well, except my student loans of 16k which will get the minimun FOREVER).
Girl I was just talking to Great Lakes the other day stupidly thinking I could get a second grace period and would have until June 2022 to pay it back. Nope. To make matters worse, my school doesn't consider 3 credits "half-time" thus come September of this year, my payments (and thus interest) will start up again. "Pissed" is an understatement. I had restructured my payment plan thinking I had an extra 6 months when I don't even have until graduation to save up and make a lump sum. I'm gonna have to cut back on my spending and figure out how to pull together $6k in less than 5 months. It'll be a stretch since I'm still paying tuition out of pocket until December. -_-

And watch Biden 'nem pass loan forgiveness right when I finish my payments.
 

ProprioBella

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Girl I was just talking to Great Lakes the other day stupidly thinking I could get a second grace period and would have until June 2022 to pay it back. Nope. To make matters worse, my school doesn't consider 3 credits "half-time" thus come September of this year, my payments (and thus interest) will start up again. "Pissed" is an understatement. I had restructured my payment plan thinking I had an extra 6 months when I don't even have until graduation to save up and make a lump sum. I'm gonna have to cut back on my spending and figure out how to pull together $6k in less than 5 months. It'll be a stretch since I'm still paying tuition out of pocket until December. -_-

And watch Biden 'nem pass loan forgiveness right when I finish my payments.
I’m not even eligible since these are MBA private loans.
 

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