Author Topic: We're debt free!  (Read 11340 times)

Zoe

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We're debt free!
« on: May 04, 2013, 09:22:01 AM »
We're debt free!

I posted a while ago about receiving a little bit of inheritance and was deciding what to do with it. We initially put 6 months of expenses into savings, paid off the one remaining vehicle loan, a medical bill, and one of my fairly large student loans. The more I thought about it, the more I wanted to pay off the other large student loan. The interest rate was about 6%. My husband and I talked it over and he said go for it. It was hilarious calling them up, asking what the pay off was (~$20K ish), and then saying I wanted to pay it off. The surprise from the woman on the other end was so funny! "Oh, uh, ok" LOL.

So, we've been debt free for a few months now, and it's fantastic! We did dip into that 6 month fund a little, but we still have several months of savings (and now no debt) and adding to it each paycheck. I have a bunch of dental work that we're going to cash flow over the next couple of years (fillings, wisdom teeth out, pre-molars out, and then braces) which sucks financially, but I'm very excited to finally get started on having straight teeth.

Now, it's onto the next steps...funding IRA's and saving for a house down payment.

SMMcP

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Re: We're debt free!
« Reply #1 on: May 04, 2013, 09:50:13 AM »
Doesn't feel wonderful! Congratulations.

Self-employed-swami

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Re: We're debt free!
« Reply #2 on: May 04, 2013, 10:08:42 AM »
Congratulations!

I remember phoning the bank when I wanted to pay off our ~$90,000 LOC (it was part of our house financing) and the woman asked me twice, if I wanted them to try and transfer the whole amount out of our chequing account, at once.  She said there would be fees, if the transaction 'bounced' and I told her not to worry, because I had $130,000 in there.  I'd never made more than a minimum payment in the year previous, because I knew I had this  part of my Mom's inheritance coming, which is why we went with a LOC instead of all of borrowed funds in a mortgage.
« Last Edit: May 04, 2013, 10:12:03 AM by Self-employed-swami »

arebelspy

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Re: We're debt free!
« Reply #3 on: May 04, 2013, 10:22:12 AM »
Congratulations!

That's HUGE.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Zoe

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Re: We're debt free!
« Reply #4 on: May 04, 2013, 10:34:03 AM »
Thanks everyone!

We're also trying to reduce monthly expenses to up our savings rate as well! Everything is nearly bare bones already, lol. Housing costs are something I'm trying to reduce. Our rent is low on our 4 bedroom house, BUT the utilities are more expensive than I'd like. And the house is just too big. We're also looking to move closer to my husband's work, which will significantly lower our gas expense.

matchewed

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Re: We're debt free!
« Reply #5 on: May 04, 2013, 11:28:55 AM »
Congratulations. It is always nice to see what being debt free can inspire in people. :)

Self-employed-swami

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Re: We're debt free!
« Reply #6 on: May 04, 2013, 12:00:32 PM »
Thanks everyone!

We're also trying to reduce monthly expenses to up our savings rate as well! Everything is nearly bare bones already, lol. Housing costs are something I'm trying to reduce. Our rent is low on our 4 bedroom house, BUT the utilities are more expensive than I'd like. And the house is just too big. We're also looking to move closer to my husband's work, which will significantly lower our gas expense.

Good idea to look at the housing and commute costs. 

Now that you've freed up some of your cashflow from debt repayments, you can funnel it all into savings!

LivingOnLess

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Re: We're debt free!
« Reply #7 on: May 04, 2013, 04:24:21 PM »
Awww that is just awesome!  Congratulations.  I can just picture the customer service rep on the other end of the line when you said that you wanted to pay off your loan....she is probably used to folks asking for an extension.

Enjoy your new debt free life, and I'm sure you are going to smiling a lot more after the dental work.  Congrats again!

LivingOn(a lot)Less

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Re: We're debt free!
« Reply #8 on: May 04, 2013, 11:44:28 PM »
congrats! that is amazing and wonderful.

braces, though? are you sure? are they 1000% necessary? I only ask because I got them as an adult and they hurt really effing bad. For years. I wouldnt do it again. I wish I had my 4K back. my teeth werent that bad, really (even the orthodontist said that!). just make really sure you really need them. :)

happy

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Re: We're debt free!
« Reply #9 on: May 05, 2013, 12:58:37 AM »
Woo-hoo, thats fantastic. Congratulations

pac_NW

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Re: We're debt free!
« Reply #10 on: May 05, 2013, 07:04:13 AM »
Outstanding - way to go!

Zoe

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Re: We're debt free!
« Reply #11 on: May 05, 2013, 09:29:26 AM »
congrats! that is amazing and wonderful.

braces, though? are you sure? are they 1000% necessary? I only ask because I got them as an adult and they hurt really effing bad. For years. I wouldnt do it again. I wish I had my 4K back. my teeth werent that bad, really (even the orthodontist said that!). just make really sure you really need them. :)

Thanks!

The braces probably aren't "medically" necessary or anything, but it's for my own personal self esteem. They're pretty jacked. I don't like smiling for pictures. I had a cosmetic procedure done years ago that I paid for out of pocket (well, took out a LOAN, blah) that wasn't necessary, but definitely made me happier and had better self esteem and confidence.  :)

Zoe

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Re: We're debt free!
« Reply #12 on: May 05, 2013, 09:30:37 AM »
Congratulations!

I remember phoning the bank when I wanted to pay off our ~$90,000 LOC (it was part of our house financing) and the woman asked me twice, if I wanted them to try and transfer the whole amount out of our chequing account, at once.  She said there would be fees, if the transaction 'bounced' and I told her not to worry, because I had $130,000 in there.  I'd never made more than a minimum payment in the year previous, because I knew I had this  part of my Mom's inheritance coming, which is why we went with a LOC instead of all of borrowed funds in a mortgage.

$90K! I'm surprise she actually went through with it. I'm sure she was just stunned LOL!

Self-employed-swami

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Re: We're debt free!
« Reply #13 on: May 05, 2013, 09:56:40 AM »
Yep.  I don't think many people call to pay off a whole loan that size, when they've only ever made minimum payments.

icefr

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Re: We're debt free!
« Reply #14 on: May 05, 2013, 09:12:46 PM »
Congrats!! I remember answering some of your questions in your first post. Enjoy being debt free!!

olivia

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Re: We're debt free!
« Reply #15 on: May 05, 2013, 10:24:05 PM »
AWESOME!  Congratulations!!!

jamccain

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Re: We're debt free!
« Reply #16 on: May 05, 2013, 10:41:50 PM »
Congrats!  Pat yourself on the back....

Now get back to work and become FI!

Mazzinator

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Re: We're debt free!
« Reply #17 on: May 09, 2013, 01:23:33 PM »
Sweet!!!

I'm sooo jealous..in a good way ;-)

Johnny Aloha

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Re: We're debt free!
« Reply #18 on: May 09, 2013, 05:21:54 PM »
Great job - keep the momentum going!!

earlyFI

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Re: We're debt free!
« Reply #19 on: May 10, 2013, 08:49:54 AM »
WAHOO!!!! Congrats to you!

What a wonderful feeling! I am so happy for you!

Zoe

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Re: We're debt free!
« Reply #20 on: May 10, 2013, 09:06:24 AM »
Thanks everyone!!

It's so weird though. Now that we don't have any debt payments, there still doesn't seem like there's any money left. (There IS, but we're still getting out of the "impulse" habit.) With lower incomes it just feel like it's going to take FOREVER to save up for XYZ.

earlyFI

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Re: We're debt free!
« Reply #21 on: May 10, 2013, 11:25:54 AM »
Thanks everyone!!

It's so weird though. Now that we don't have any debt payments, there still doesn't seem like there's any money left. (There IS, but we're still getting out of the "impulse" habit.) With lower incomes it just feel like it's going to take FOREVER to save up for XYZ.

You can do it! It does take some time to adjust to the new normal. I have found that saving becomes exciting and  somewhat addictive and it ends up NOT taking as much time as you originally thought... although you may have to be patient and learn new skills a long the way.

Way excited for you!

Zoe

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Re: We're debt free!
« Reply #22 on: May 12, 2013, 12:32:11 PM »
Thanks everyone!!

It's so weird though. Now that we don't have any debt payments, there still doesn't seem like there's any money left. (There IS, but we're still getting out of the "impulse" habit.) With lower incomes it just feel like it's going to take FOREVER to save up for XYZ.

You can do it! It does take some time to adjust to the new normal. I have found that saving becomes exciting and  somewhat addictive and it ends up NOT taking as much time as you originally thought... although you may have to be patient and learn new skills a long the way.

Way excited for you!

Oh, saving is super exciting for me! We're testing out living only on my husband's paycheck this month (and we should have a couple hundred left over actually!) and putting all of mine into savings. I'm adjusting our meals to reduce the grocery bill a little and bought a Honda to reduce gas costs.

Patience is not my strong point. :/

little stache

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Re: We're debt free!
« Reply #23 on: May 15, 2013, 10:30:11 PM »
Whoot. And now comes the hard part. Staying on track for your long-term goals. Reigning in the impulse that now that there is extra we can.....you name it! Stay connected and get the feedback that helps u make sure that the impulse is not just that but something that makes sense long term for your family. I know my house has to balance this allot (and we are not debt free!).


cerberusss

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Re: We're debt free!
« Reply #24 on: May 17, 2013, 01:38:12 AM »
We're testing out living only on my husband's paycheck this month
Wow, that's awesome! Really curious how that works out.

Zoe

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Re: We're debt free!
« Reply #25 on: May 19, 2013, 10:07:24 AM »
We're testing out living only on my husband's paycheck this month
Wow, that's awesome! Really curious how that works out.

So far so good! All of mine is going into savings.

Self-employed-swami

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Re: We're debt free!
« Reply #26 on: May 19, 2013, 10:10:45 AM »
So far so good! All of mine is going into savings.

Yay!

olivia

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Re: We're debt free!
« Reply #27 on: May 25, 2013, 11:17:00 AM »
We're testing out living only on my husband's paycheck this month
Wow, that's awesome! Really curious how that works out.

So far so good! All of mine is going into savings.

Awesome!  I want to do this once our debt is paid off, too.

Rollin

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Re: We're debt free!
« Reply #28 on: May 25, 2013, 07:40:07 PM »
Thanks everyone!!

It's so weird though. Now that we don't have any debt payments, there still doesn't seem like there's any money left. (There IS, but we're still getting out of the "impulse" habit.) With lower incomes it just feel like it's going to take FOREVER to save up for XYZ.

I think that is interesting that you point this out.  Once you are debt free there is silence.  No bells, no whistles, no music playing.  It's not sexy.  I wonder if that is why people don't become debt free sometimes.  It's not as exciting as buying a new car for example.

It has to come from within.  You have to want it, and definitely not want the crap that comes with overspending and being in debt.  Freedom comes next - financial independence.  You now have choices.  You may choose to do the same job for the same pay, but now it is your choice!

Congratulations!  And join the club...

Zoe

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Re: We're debt free!
« Reply #29 on: May 26, 2013, 09:23:43 AM »
Thanks everyone!!

It's so weird though. Now that we don't have any debt payments, there still doesn't seem like there's any money left. (There IS, but we're still getting out of the "impulse" habit.) With lower incomes it just feel like it's going to take FOREVER to save up for XYZ.

I think that is interesting that you point this out.  Once you are debt free there is silence.  No bells, no whistles, no music playing.  It's not sexy.  I wonder if that is why people don't become debt free sometimes.  It's not as exciting as buying a new car for example.

It has to come from within.  You have to want it, and definitely not want the crap that comes with overspending and being in debt.  Freedom comes next - financial independence.  You now have choices.  You may choose to do the same job for the same pay, but now it is your choice!

Congratulations!  And join the club...

You are exactly right Rollin. No excitement, for the most part. BUT, there is excitement when I will be able to pay for my oral surgery (in less than 2 weeks!) in full, in cash.

Living off one paycheck is still going well. A few things have come up: got a flat on the way to work the other day. Luckily I was only 14 miles away from home. My roadside assistance covers up to 15 miles! Hah! Had to buy a few things at the auto store to plug the tire on that car and to change out the master cylinder on the other car. Having brakes will be nice, lol. (They work, just not that well.)

MakingSenseofCents

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Re: We're debt free!
« Reply #30 on: June 02, 2013, 10:58:41 AM »
Wow this is awesome! Great job!

Rollin

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Re: We're debt free!
« Reply #31 on: June 02, 2013, 12:43:16 PM »
 are exactly right Rollin. No excitement, for the most part. BUT, there is excitement when I will be able to pay for my oral surgery (in less than 2 weeks!) in full, in cash.

Living off one paycheck is still going well. A few things have come up: got a flat on the way to work the other day. Luckily I was only 14 miles away from home. My roadside assistance covers up to 15 miles! Hah! Had to buy a few things at the auto store to plug the tire on that car and to change out the master cylinder on the other car. Having brakes will be nice, lol. (They work, just not that well.)
[/quote]

I would agree that is exciting!  It is also your newfound freedom setting in.  You now have the freedom to pay for your oral surgery as opposed to not, or as opposed to later, but with a higher price.

Great job!

thefrugaltwo

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Re: We're debt free!
« Reply #32 on: June 05, 2013, 08:31:56 AM »
Congratulations!!!!! You must feel so free!