I frequently get e-mails from people who are in over their heads and looking for advice on how to get out of debt. While I do my best to point these people to relevant articles and provide some general guidance, I never hear back from them as to how things are going.
With that in mind, I thought I’d kick off the week by asking you guys to share your debt reduction stories. Whether you’re still formulating a plan, have made some progress, or have already gotten yourself out of debt, I’d love to hear your story.
Our debt reduction story
My wife and I have a rather boring story, and we like it that way. While we use our credit cards regularly, we’ve never carried a balance. We’ve also always paid cash for our vehicles. In fact, the only thing that we’ve ever borrowed for has been our home purchases…
When we bought our first house, we only had 10% to put down, so we used an 80/10/10 (80% first mortgage, 10% second mortgage, 10% down). We scratched an fought to get rid of that second mortgage, which we killed off within a couple of years. Four years after buying our first house, we had a job-related move and we plowed the profits from our first house into our current house. That was roughly three years ago.
About 18 months ago, we then refinanced into a 15 year mortgage. In the time since then, we’ve been working hard to pay off our mortgage early. We’re still have quite a ways to go, but we’ve made great progress.
Your debt reduction story
Please leave a comment letting us know how far you’ve come and/or how far you have left to go. If you have any tips or tricks to share, I’d love to here those, as well. Go ahead, don’t be shy…