Oh boy, my particular situation was made for a challenge like this one! All of my debt was fortunately incurred to purchase income producing assets, but there's a whole lot of it. My FI date and my debt payoff date are basically one and the same. My current assets will allow me to technically reach FI far before paying off the last of my debt, but I am imposing upon myself a condition of being completely debt-free before I declare myself truly free. So here it goes:
As of Sept 11, 2019:
Debts:
Interest-Only Loans:
- $2500 @ Prime
- $13500 @ Prime
- $108500 @ Prime+0.3
- $152200 @ Prime
All these are with the same creditor except for the prime + 0.3 one, and were incurred either to purchase dividend stocks, or are the result of transferring other debts to a lower interest option. And yes, I have a very generous creditor who has a lot of faith in me! I could combine these amounts into one, technically, but it's more fun to see the smaller numbers dwindle, and I use them as short term goals. I do put all my payments towards a single loan, then move on to the next though, so interest does build up on the other ones.
Additional Interest-Only Loans:
- $25200 @ Prime
- $51600 @ Prime
These two were incurred to invest in a startup. Risky? Yes, very. Am I willing to lose it all? Absolutely. This particular project is priceless to me, the results could change an entire industry and help society immensely. They could also not pan out. I'm willing to gamble on it.
Interest-Only Mortgages:
- $255600 @ Prime
This is also set up as an interest-only loan rather than a traditional mortgage. The house was a shipwreck when I got it (HCOL, but I got a good deal on it), and I am in the process of fixing it up. Should be ready to rent out parts of it by the end of this year.
- $60500 @ Prime
This is currently sitting in a high interest savings account as a future down-payment, as I have my eye on another house. If I bought it, I could double my income from the first house by renting out the unit I live in, and I could rent out part of this second house to live for free. Plus it's a beautiful house in one of the best neighborhoods in the city. I would want to live in a house like this post-FI. Just need the current owner (who's a friend of mine) to sell, which I think may happen before the end of the year, with any luck. He inherited it and it's currently vacant, just has a lot of memories, which I understand.
Taxable Accounts:
- $207000 in Blue chip dividend stock
The income from dividends pay the interest of the loan that bought the shares, plus a bit, which is why I signed up in the first place. Worked better a few years back when interest rates were lower, but I'm still making money off of them, so no incentive to change.
- $109500 in index ETFs
Combined with my tax sheltered accounts, these ETFs will form the backbone of my retirement. By the time I grind through the debts, I'll be able to live off only them, assuming a reasonable growth rate.
So totals:
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!