How Did You Become Debt Free?

[bennkar]

I think I used just about every trick in the book to become debt free. You name it, I probably did it at some point. Buy at yard sales (clothes, furniture, housewares, hobbies), learned to build my own furniture, installed extra insulation, installed power strips and florescent (& LED!) bulbs, replaced the roof and windows myself, I kept temps lower in the winter and higher in the summer, I attempted to fix anyting that needed it instead of replacing them, did credit card arbitrage during 2007-2009 when that was workable, I am doing credit card bonuses now (made ~$1,000 this year), resell items on ebay and locally (I have maybe $500 in profits this year), buy food inexpensively at Aldi's (a good & cheap grocery store), I workout in an employer subsidized gym (I have better health and don't need to shower at home), I eat less processed foods (better for you and less exspensive), make my own food (made lots of jams from the fruit trees out back), and lots more things, but I think you get the idea.

I took my extra money and usually split it near 50/50 (varied from month to month) to extra principle payments and extra investments. I think this worked out the best for me.

[orlandowilliams]

For becoming debt free you need to follow few things which i did

1. Don’t ignore the problem
2. Make a debt-escape plan
3. Pay on time
4. Re-jig your debts (Credit cards, Loans, Mortgages)
5. Don't borrow more
6. Put your savings towards your debts
7. Stick with it

[Nsmith508]

Listening to Dave Ramsey and following his advice!

[MakeAStash]

It's all about LBYM. The realization that buying "more stuff" doesn't lead to happiness helped.

[UnknownXV]

I became debt free by never going into debt to begin with.

[Joan.of.the.Arch]

Ah, Bucky Badger, I posted as debt free in the other thread. We only just paid off out mortgage this autumn. I think you would have made the same decision in our situation:

We are in our 19th year of ownership on a thirty year loan, and had begun paying it down at an accelerated rate only last year. Everything else in the way of savings was taken care of first. After 19 years, there was little left to pay off. Plus, it was more of an investement to pay it off because it was a 6.25% loan, not the 3ish% many have bought at or refinanced to. Refinancing fees would not pay off for us since the total owed was so low. But getting rid of that 6.25% savings looked like a fair "investment."

We had bought out house for less monthly payment than we rented a one bedroom apartment 19 years ago. So our house has always been only a small expense. People financing an economy car might have a bigger monthly payment than our mortgage! I would say our very humble house purchased long ago is one reason that we have been able to avoid taking on other debt, too.

I'm in my 50's. I don't think it is a big deal to have a paid off mortgage and be debt free by this point. I think in this forum we sometimes forget that a large percentage of USAmericans actually are debt-free.

[QuarterMillionMan]

It takes discipline at saving & not spending more than you take in. It is that simple, yet so hard for some to accomplish. At a young age I learned to always save and I believe that stuck with me thru life and I find it satisfying to save. I guess some people find it satisfying to spend (shrug), to each their own.

[elfen lied]

Pay them off and don't get anything else that requires you to get credit. Pay the most money to the highest interest rate.