Author Topic: When did you become debt free?  (Read 23711 times)

Gray Matter

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Re: When did you become debt free?
« Reply #50 on: June 26, 2014, 05:47:23 AM »
We paid off the HELOC, car loan, and student loan in 2010 (I was 39).  The mortgage is at 2.95%, so we're in no hurry to be done with that, and will be 56 and 59 when it's done.  We're kind of late to the party.

Emilyngh

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Re: When did you become debt free?
« Reply #51 on: June 26, 2014, 07:36:30 AM »
We were completely debt free about 8 years ago.   That first year I was out of grad school, we both got high paying jobs, lived off only my income and used DH's to pay off DH's school loans, our combined cc debt (approx $15k)...and bought 2 cars paying cash (less mustachian).
 We then continued to live off of my income and save all of DH's and that was the start of our stache!

Doing this enabled us to move to our dream location where I took a lower paying job, have a daughter that dh then quit to SAH with, and put a large chunk down on....getting into debt again by buying our house.  So, getting out of debt started a sequence that enabled an end goal of us getting into debt again.    Don't regret this sequence of events at all and don't plan to payoff the mortgage over the next 30 years (unless we downsize and rates are much higher when we buy again).   

arebelspy

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Re: When did you become debt free?
« Reply #52 on: June 26, 2014, 07:56:33 AM »
It also depends on which country you are in, and what the tax incentives are there.

Good point. All of those sorts of things will play into comparing the opportunity cost, and then you look at your personality/investor profile/age/risk tolerance on top of it. It' snot a simple cut and dry question.

I do encourage Mustachians to try and get past the psychology and go with the math, have with a decent percent of stocks in their AA, and leave a sub-5% mortgage in place, but if they feel strongly about "debt free," cool.
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lackofstache

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Re: When did you become debt free?
« Reply #53 on: June 26, 2014, 09:54:43 AM »
Nearly out of stupid debt (car, family loan & high interest student loans), should be done in 8 months at age 30, my wife'll be 27. We'll continue with our mortgage and my student loans, at 4.5% & 3.2% respectively. I may never completely be out of debt as Real Estate is part of the plan once we're done with high interest student loans.

Mississippi Mudstache

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Re: When did you become debt free?
« Reply #54 on: June 26, 2014, 05:37:51 PM »
My wife and I eliminated all debt except the mortgage last year (I was 29). We went back and forth about whether to throw extra money at the mortgage or the market, but in the end, the tax-advantages of 401ks, HSAs, and IRA made the decision easy. We max them all out and keep the mortgage.

andrea-stache

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Re: When did you become debt free?
« Reply #55 on: June 26, 2014, 06:03:15 PM »
March 15, 2013 at the age of 39.  Paid off the mortgage in full.  Never had student loan debt or credit card debt.   Will never have any debt again....owing nothing is a wonderful feeling.

My favorite saying:

Only one letter separates owing and owning…but they are two very different concepts!

agent_clone

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Re: When did you become debt free?
« Reply #56 on: June 27, 2014, 04:44:57 PM »
At the age of 30, I have never had any debt (unless you count a credit card that has been paid off each month since I got it).

I will be going into debt for the first time in a few weeks though as I am buying a house...

EricL

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Re: When did you become debt free?
« Reply #57 on: June 27, 2014, 09:59:40 PM »
2003.  I had some college loans and credit card loans in the tens of thousands.  Not too bad but initially my income wasn't too great.  I was chucking half my take home pay and a windfall at it until it was gone.  It wasn't easy but it was and remains TOTALLY worth it.

HairyUpperLip

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Re: When did you become debt free?
« Reply #58 on: June 29, 2014, 09:17:14 AM »
debt free at 29 in early 2013.

greenmimama

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Re: When did you become debt free?
« Reply #59 on: June 29, 2014, 12:44:44 PM »
We have only ever had a mortgage, but we plan to be mortgage free this year, as soon as our house sells, because we will downsize to a place we can pay cash for, we are 38 and 39. We are very excited about the prospect!

Villanelle

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Re: When did you become debt free?
« Reply #60 on: June 29, 2014, 12:59:38 PM »
Never had any debt except mortgage.  That should be paid off next spring, when we plan to sell our rental after the current lease is up. 

We will likely buy a home again someday, however, and likely it would be financed since the places we hope to end up are expensive.  And there may be financed rental properties in the future as well. 

Spartana

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Re: When did you become debt free?
« Reply #61 on: June 29, 2014, 04:00:40 PM »
I never had any debt until I bought my first house. Had a big down payment and paid it off in 4 years (with the help of getting a couple of roommates and lots of overtime at work).  So debt-free until 1996 - and then debt-free again since around 2000.

YK-Phil

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Re: When did you become debt free?
« Reply #62 on: June 29, 2014, 08:35:25 PM »
I became debt-free by accident, at 48. Although I was at the time making a nice 6-figure salary and was almost at the top of my career as the CEO of a federal environmental agency, I still had a sizeable mortgage and was a total spending clown. Unexpectedly, I was asked by the puppeteers to resign over the outcome of a very important resource development project that I had rejected, but to avoid negative media exposure, I ended up getting a nice severance pay. On the financial side, this allowed me to pay my mortgage and various consumer debts. On the non-financial side, losing my job was a very emotional event for me, but it forced me rethink my priorities in life and work. Not wanting to go back to any job even remotely connected to my field, I took a few years off, worked for minimum wage as a baggage handler for an airline then as a customer rep for another for even less money, met a wonderful and frugal woman who eventually became my wife, and finally took a low-paying but low-stress job as a flight attendant for a major airline for four fantastic years. Seven and a half years later and now 56, I am FI but decided last October to accept a nice job offer in my field. However, this time around, my outlook on life and career is very different which makes my job much more enjoyable and stress-free. Secretly, I'm hoping to be fired again :D While getting fired was at first a very difficult event, it is in hindsight the best thing that ever happened to me.

G-dog

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Re: When did you become debt free?
« Reply #63 on: June 30, 2014, 06:22:31 PM »
My wife and I eliminated all debt except the mortgage last year (I was 29). We went back and forth about whether to throw extra money at the mortgage or the market, but in the end, the tax-advantages of 401ks, HSAs, and IRA made the decision easy. We max them all out and keep the mortgage.

A wise investment decision!

G-dog

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Re: When did you become debt free?
« Reply #64 on: June 30, 2014, 06:24:18 PM »
At the age of 30, I have never had any debt (unless you count a credit card that has been paid off each month since I got it).

I will be going into debt for the first time in a few weeks though as I am buying a house...

I woulldn't count credit cards you pay off each month!
Congratulations on your house!

G-dog

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Re: When did you become debt free?
« Reply #65 on: June 30, 2014, 06:27:23 PM »
2003.  I had some college loans and credit card loans in the tens of thousands.  Not too bad but initially my income wasn't too great.  I was chucking half my take home pay and a windfall at it until it was gone.  It wasn't easy but it was and remains TOTALLY worth it.

Impressive and very disciplined!  I imagine you are saving/investing like crazy since then!

G-dog

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Re: When did you become debt free?
« Reply #66 on: June 30, 2014, 06:29:01 PM »
We have only ever had a mortgage, but we plan to be mortgage free this year, as soon as our house sells, because we will downsize to a place we can pay cash for, we are 38 and 39. We are very excited about the prospect!

Very cool! 

G-dog

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Re: When did you become debt free?
« Reply #67 on: June 30, 2014, 06:31:13 PM »
I never had any debt until I bought my first house. Had a big down payment and paid it off in 4 years (with the help of getting a couple of roommates and lots of overtime at work).  So debt-free until 1996 - and then debt-free again since around 2000.

Wow! Awesome!

G-dog

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Re: When did you become debt free?
« Reply #68 on: June 30, 2014, 06:37:40 PM »
I became debt-free by accident, at 48. Although I was at the time making a nice 6-figure salary and was almost at the top of my career as the CEO of a federal environmental agency, I still had a sizeable mortgage and was a total spending clown. Unexpectedly, I was asked by the puppeteers to resign over the outcome of a very important resource development project that I had rejected, but to avoid negative media exposure, I ended up getting a nice severance pay. On the financial side, this allowed me to pay my mortgage and various consumer debts. On the non-financial side, losing my job was a very emotional event for me, but it forced me rethink my priorities in life and work. Not wanting to go back to any job even remotely connected to my field, I took a few years off, worked for minimum wage as a baggage handler for an airline then as a customer rep for another for even less money, met a wonderful and frugal woman who eventually became my wife, and finally took a low-paying but low-stress job as a flight attendant for a major airline for four fantastic years. Seven and a half years later and now 56, I am FI but decided last October to accept a nice job offer in my field. However, this time around, my outlook on life and career is very different which makes my job much more enjoyable and stress-free. Secretly, I'm hoping to be fired again :D While getting fired was at first a very difficult event, it is in hindsight the best thing that ever happened to me.

Adversity never keeps a good person down! You should write a book. You learned a lot about yourself and came out stronger and happier!  I am sorry for what you had to go through, but happy for what youv'e done for yourself.

G-dog

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Re: When did you become debt free?
« Reply #69 on: June 30, 2014, 06:39:51 PM »
It's been really interesting to read about everyone's journey and experiences. Especially those who use debt as an investment tool, not a liability.

veypor

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Re: When did you become debt free?
« Reply #70 on: June 30, 2014, 06:41:22 PM »
My wife and I just blasted through $44,000 of mostly my student debt and a touch of her personal credit card debt (~$4,000) in 19 months! Getting a later start in life--I graduated from college at 27--I realized that I need to kick some serious ass if I'm ever going to retire!

Been officially debt free for 2 months now and every day I wake up without that wad of debt feels like Christmas morning.

Cheddar Stacker

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Re: When did you become debt free?
« Reply #71 on: June 30, 2014, 06:44:48 PM »
I became debt-free by accident, at 48. Although I was at the time making a nice 6-figure salary and was almost at the top of my career as the CEO of a federal environmental agency, I still had a sizeable mortgage and was a total spending clown. Unexpectedly, I was asked by the puppeteers to resign over the outcome of a very important resource development project that I had rejected, but to avoid negative media exposure, I ended up getting a nice severance pay. On the financial side, this allowed me to pay my mortgage and various consumer debts. On the non-financial side, losing my job was a very emotional event for me, but it forced me rethink my priorities in life and work. Not wanting to go back to any job even remotely connected to my field, I took a few years off, worked for minimum wage as a baggage handler for an airline then as a customer rep for another for even less money, met a wonderful and frugal woman who eventually became my wife, and finally took a low-paying but low-stress job as a flight attendant for a major airline for four fantastic years. Seven and a half years later and now 56, I am FI but decided last October to accept a nice job offer in my field. However, this time around, my outlook on life and career is very different which makes my job much more enjoyable and stress-free. Secretly, I'm hoping to be fired again :D While getting fired was at first a very difficult event, it is in hindsight the best thing that ever happened to me.

Adversity never keeps a good person down! You should write a book. You learned a lot about yourself and came out stronger and happier!  I am sorry for what you had to go through, but happy for what youv'e done for yourself.

+1. Cool story ykphil. Thanks for sharing.

commodore perry

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Re: When did you become debt free?
« Reply #72 on: July 01, 2014, 12:42:18 PM »
3/31/16 at 37...but who's counting :)

my stretch goal is 2/28/15 at 36. I paid of student loans about 2 years ago and owe $108k on 15 year mortgage (making extra payments each month). I calculated that I will save $37.5k by paying off early.

$15k on auto (going to pay off this summer with some cash I have set aside). Never carried any other debt.

I just discovered this site but it's right up my alley - definitely matches my philosophy. Hate debt and hate interest...what a waste of money. I knew someone who refinanced their house and saved $600/month in interest. Holy crap, they must have been paying a ton in interest before to be able to make a $600/month delta after refinance!

happyfeet

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Re: When did you become debt free?
« Reply #73 on: July 02, 2014, 07:26:01 AM »
4 years ago at age 51.  Sold a $400,000 house and paid $200,000 cash for the next one.  Also hit the $1M mark about the same time.  We should have more money - bought into the buying stuff along the way.  Live and learn!
« Last Edit: July 02, 2014, 07:29:16 AM by happyfeet »

MrsPotts

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Re: When did you become debt free?
« Reply #74 on: July 03, 2014, 01:54:33 PM »
I owe 34k on my mortgage, and have 35k in cash, so i guess it depends on the definition of debt free.   I am 52.

sleepyguy

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Re: When did you become debt free?
« Reply #75 on: July 04, 2014, 02:16:35 PM »
Don't really care too much about be 100% debt free.  We're carrying over $300k mortgage still on 2 properties, but they have positive cash flow, we also leveraged about 150k on investments.  We 'could' be debt free today if we wanted, but it's unneeded.

Rather maximize now, once our FIRE numbers are in place, we'll scale back.  We're both 35 currently and have no worries of hitting our numbers (well, of course unless there is an economic collapse or something).

Fonzico

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Re: When did you become debt free?
« Reply #76 on: July 04, 2014, 02:29:23 PM »
This week! Just finished paying off my husband's student loans (they were only $6500 to start with, so not too bad).

We did have a (damnable!) car loan from 7 years ago, which was paid off about two years ago, and we carried about $2000 in credit card debt off and on while we were in school. Credit card gets paid off weekly now though, and I am very debt adverse, and don't see us taking on any new debt, except a mortgage in a couple more years here!

So looking forward to 'stashing the money that was getting shovelled away into the student loans. They were a floating rate, but were only at 3%, but for my own sanity I just wanted them gone.

G-dog

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Re: When did you become debt free?
« Reply #77 on: July 05, 2014, 09:35:10 AM »
3/31/16 at 37...but who's counting :)

my stretch goal is 2/28/15 at 36. I paid of student loans about 2 years ago and owe $108k on 15 year mortgage (making extra payments each month). I calculated that I will save $37.5k by paying off early.

$15k on auto (going to pay off this summer with some cash I have set aside). Never carried any other debt.

I just discovered this site but it's right up my alley - definitely matches my philosophy. Hate debt and hate interest...what a waste of money. I knew someone who refinanced their house and saved $600/month in interest. Holy crap, they must have been paying a ton in interest before to be able to make a $600/month delta after refinance!

You've got the target in sight, you have a plan, and the will to execute. My guess is you'll get there even sooner, unless you change your plan (e.g., use low interest debt for high return investment). 

G-dog

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Re: When did you become debt free?
« Reply #78 on: July 05, 2014, 09:37:24 AM »
This week! Just finished paying off my husband's student loans (they were only $6500 to start with, so not too bad).

We did have a (damnable!) car loan from 7 years ago, which was paid off about two years ago, and we carried about $2000 in credit card debt off and on while we were in school. Credit card gets paid off weekly now though, and I am very debt adverse, and don't see us taking on any new debt, except a mortgage in a couple more years here!

So looking forward to 'stashing the money that was getting shovelled away into the student loans. They were a floating rate, but were only at 3%, but for my own sanity I just wanted them gone.

Independence Day has a whole new meaning for you (assumes you are in the US)! Congratulations!

ysette9

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Re: When did you become debt free?
« Reply #79 on: July 05, 2014, 10:34:50 AM »
My husband finally had the same realization I had a while back: "we only owe $2K on the car? Why haven't we paid the &*$% thing off already?"
Paid off last week. Only thing left is our mortgage on the townhouse we currently rent out, but the plan is to sell later this year. We will be totally debt-free then, but it will be temporary as we will eventually buy another house and have that mortgage until we can pay it off. My hope is that future mortgage will last no more than 15 years.

Hotstreak

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Re: When did you become debt free?
« Reply #80 on: July 05, 2014, 12:38:03 PM »
I will be debt free in the middle of next year, at age 29.  It would have happened already, but my car broke down and I purchased a new one last summer, transferred to the Chase Slate card at 0%.  I have a separate account building funds to pay that off before it expires next April, and will likely pay my student loan off at the same time.  It's at 7% with a low balance, and I could pay it now, but I want to make sure that I have enough built to zero the card first!

arebelspy

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Re: When did you become debt free?
« Reply #81 on: July 05, 2014, 01:39:55 PM »
MOD NOTE: Split off discussion about investing versus paying off student loan to its own thread here: http://forum.mrmoneymustache.com/ask-a-mustachian/investing-vs-paying-down-student-loan/
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.