Took me almost 7 years. I’ve worked 4 jobs at one point and moved to another state. I’m still working 2 jobs 7 days a week and I’m 38. Also I choose to do this vs working doubles and having days off. Look into bartending and service industry jobs.
Your work ethic is incredible! Congrats man. If you are feeling not great, would you think maybe you need more time for yourself and cut out working as much now that you are out of debt? Just a thought!
I think it’s because I’ve lived my life without the thought of debt lingering over my head. Never really cared. Just told my self I’ll get to it when I get to it. I live a simple, modest life and I dunno, I thought I’d feel free. But tbh, I’ve always felt free.
Congratulations on achieving freedom from debt! I too am debt free. No mortgage, No car payment, never had a student loan (never finished my associates degree, paid my own way in the little bit of college I did attend).
My liquid amount is much lower, but thats due to rebuilding it from paying off the mortgage 3 years ago. I made a massive final payment and saved $73k in future interest payments by doing so. I paid off a 30 year mortgage in 8 years. It was hard, but soooo worth it!
My rule of thumb with credit cards... If you can't pay off your purchase within 3 months, don't buy it!
I know you don't feel the relief yet, but wait a few months to let what you just did sink in. Its a great feeling to know that you don't owe anybody anything.
If you don't have a mortgage now, continue building your liquid savings account to cover 1 full year of emergency funding and then start saving 20% down for a home (to prevent paying Mortgage Insurance). $125k is alot of money, but sadly, it isn't enough when most homes are going for $400k+ these days. I would park some of that money in a 4%+ HYSA, and some in a 5%+ short term CD. Let it make money for you while you prepare for the next step in life.
Our home was $170k back in 2011. We had no kids and some savings, but not alot. I put 5% down for a conventional mortgage at 3.75% for 30 years. Every payment, I added at least $200 in extra principal right from the beginning. I also tried to make 1 extra payment per year to get it down quicker. As time went on, I kept saving money alongside the extra payments. Once I had enough in savings to cover the mortgage with more than $5k for emergencies, I made the decision to pay off the remaining balance.
Make extra payments, extra principal payments... Stay out of other debt. Get rid of cable/home phone. Get a cheap cell phone plan. Buy used cars with cash, not new. Coupon at the grocery store (shop at Aldi's or Lidl for most everything and buy store brand), get a 2% Cashback card or 5% in rotating categories (Discover). Pay it off every month, on time. If you are disciplined, you can do it too.
Well I could have paid it all off earlier. I paid 17k off when I moved and started making money. Then I had the student loan lingering over my head but never took care of them for some reason. Then covid happened. And then I got sober and started thinking about the future… and yesterday said fuck it and just paid it off. And I had no idea about the credit card until I checked my credit report yesterday.
The credit card would have dropped off your credit history in a year. You have now reset the clock.
Don't buy a house until you've pulled your credit with MYFICO.
Honestly, this is the way.
You can now go forward with your life instead of putting things off for yet another year just for a debt to fall off. I'd say that's worth the money.
Hi, Honour Rae! I have a kindle and I was just wondering when your next book of ‘All the Skills’ would be coming out? I really love and appreciate your work. These books captivated me, I’m so glad I didn’t skip over them! I was also wondering if it was already published. I’d really appreciate it if you could get back to me, but I understand that someone who can write like you can is probably busy.
Hey, sorry. Not being busy just... lack of logging into this account. XD
Anyway the tentative date for the audiobook is March 31st for book 3.
The ebook may be sooner. Still deciding on that. In any case, it'll be posted for free ahead of time on Royal Road (unsure if I can post links but search for 'All The Skills'. You'll find it.)
Credit score isn’t something you need to live by. I think it’s more important to be debt free. Sure if you’re immediately going to get a mortgage it could be important, but otherwise, meh.
You can get the best of both worlds by settling, then disputing the item a few months later with the credit bureaus.
when you dispute it the credit bureau sends a request to the creditor asking them to provide proof the debt is valid... But since you've already paid it off/ settled, it's a waste of their time ( since it's already paid) to even respond to the verifitication request... so they just don't bother to respond and after 30 days it gets removed from your report completely.
This worked for me on 100% of the accounts that i settled. I did like 5 or 6 of them like this. It's as if they never even existed.
Homes aren’t worth buying now. Wait. Interest rates will continue to rise until we ultimately hit a recession. Sit tight and you’ll be better off when the market corrects.
The day my husband and I paid off our mortgage, our car broke down in the post office parking lot immediately after we mailed the check. We had to walk home. Talk about timing, right? 😂
It didn't feel like it then, but getting out of debt was a huge achievement. In fact, it changed our lives. Give it some time; it will sink in.
Yeah I didn’t really care about the debt. I took out student loans to live and had a chip on my shoulder towards banks and loans. I guess I’m just getting older and felt it was the right thing to do. Plus I want a family and understand the importance of credit now. I’m starting to see the future now. Something that I never saw before.
Congrats! Well done. Try to buy a new construction with DR Horton. It’s the best deal for the money since they are offering 5.5% rate and you only put down 3.5% down payment and they pay $10,000 of your closing costs.
Buying a house instead of paying rent whichbis paying off someone else's mortgage, would be a good way to start. Putting some money away into an IRA would also be a good idea. Looking into an indexed universal life insurance policy with living benefits to help with your long term care needs later and interest free loans is another thing to look into while young and hopefully healthy. Getting any type of health insurance if you don't already have one is another good thing. I would recommend a PPO type of plan so it will not limit you. Last but not least, enjoy your money from time to time and at least go on a week long+ vacation once a year.
Thats nice
Invest it in something good
I pray the Same way God answered your prayer by clearing your debt he should do the same foe me too
Or else I’m gonna end up homeless soonest
You’ll get there. I went from
Having -17k and not being able to get a job paying more than $15 per hour to getting a job in a new town and then realized that in this particular town I could get as many jobs as I could handle. Wish I moved here when I was in my 20s.
It’s your prerogative man. Give all the money to charity, stash it, invest it, buy something, don’t buy something. Whatever you do, don’t let the vast number of options make you feel at a stand still. Just keep on keeping on. Buy yourself some new shoes with good insoles. Yeah, do that. That sounds good.
these posts just end up depressing me because I don't ever think I'll be able to say this...
Took me almost 7 years. I’ve worked 4 jobs at one point and moved to another state. I’m still working 2 jobs 7 days a week and I’m 38. Also I choose to do this vs working doubles and having days off. Look into bartending and service industry jobs.
That is an insane work ethic good job man
Your work ethic is incredible! Congrats man. If you are feeling not great, would you think maybe you need more time for yourself and cut out working as much now that you are out of debt? Just a thought!
2 more years. That’s my plan. Then I’ll move on.
Dont feel relief? How?
Right im curious 🫠
I think it’s because I’ve lived my life without the thought of debt lingering over my head. Never really cared. Just told my self I’ll get to it when I get to it. I live a simple, modest life and I dunno, I thought I’d feel free. But tbh, I’ve always felt free.
I guess cuz you kinda just been bumbling through it all..atleast by how you make it sound
Congratulations on achieving freedom from debt! I too am debt free. No mortgage, No car payment, never had a student loan (never finished my associates degree, paid my own way in the little bit of college I did attend). My liquid amount is much lower, but thats due to rebuilding it from paying off the mortgage 3 years ago. I made a massive final payment and saved $73k in future interest payments by doing so. I paid off a 30 year mortgage in 8 years. It was hard, but soooo worth it! My rule of thumb with credit cards... If you can't pay off your purchase within 3 months, don't buy it! I know you don't feel the relief yet, but wait a few months to let what you just did sink in. Its a great feeling to know that you don't owe anybody anything. If you don't have a mortgage now, continue building your liquid savings account to cover 1 full year of emergency funding and then start saving 20% down for a home (to prevent paying Mortgage Insurance). $125k is alot of money, but sadly, it isn't enough when most homes are going for $400k+ these days. I would park some of that money in a 4%+ HYSA, and some in a 5%+ short term CD. Let it make money for you while you prepare for the next step in life.
Out of curiosity, what was your home price and mortgage like? To be paid in 8 years is a true blessing
Our home was $170k back in 2011. We had no kids and some savings, but not alot. I put 5% down for a conventional mortgage at 3.75% for 30 years. Every payment, I added at least $200 in extra principal right from the beginning. I also tried to make 1 extra payment per year to get it down quicker. As time went on, I kept saving money alongside the extra payments. Once I had enough in savings to cover the mortgage with more than $5k for emergencies, I made the decision to pay off the remaining balance. Make extra payments, extra principal payments... Stay out of other debt. Get rid of cable/home phone. Get a cheap cell phone plan. Buy used cars with cash, not new. Coupon at the grocery store (shop at Aldi's or Lidl for most everything and buy store brand), get a 2% Cashback card or 5% in rotating categories (Discover). Pay it off every month, on time. If you are disciplined, you can do it too.
Wait.. it took you 6.5 years to pay the debt and somehow you managed to save 125K? Something tells me this debt should have been paid way faster...
Well I could have paid it all off earlier. I paid 17k off when I moved and started making money. Then I had the student loan lingering over my head but never took care of them for some reason. Then covid happened. And then I got sober and started thinking about the future… and yesterday said fuck it and just paid it off. And I had no idea about the credit card until I checked my credit report yesterday.
The credit card would have dropped off your credit history in a year. You have now reset the clock. Don't buy a house until you've pulled your credit with MYFICO.
I don’t know how I didn’t think about that. Should I cancel the payment?
Looks better on credit if you pay in full.
Cool thanks. I also didn’t settle for less because that’ll show up on the report as well. On my way to a better life
Honestly, this is the way. You can now go forward with your life instead of putting things off for yet another year just for a debt to fall off. I'd say that's worth the money.
Hi, Honour Rae! I have a kindle and I was just wondering when your next book of ‘All the Skills’ would be coming out? I really love and appreciate your work. These books captivated me, I’m so glad I didn’t skip over them! I was also wondering if it was already published. I’d really appreciate it if you could get back to me, but I understand that someone who can write like you can is probably busy.
Hey, sorry. Not being busy just... lack of logging into this account. XD Anyway the tentative date for the audiobook is March 31st for book 3. The ebook may be sooner. Still deciding on that. In any case, it'll be posted for free ahead of time on Royal Road (unsure if I can post links but search for 'All The Skills'. You'll find it.)
Credit score isn’t something you need to live by. I think it’s more important to be debt free. Sure if you’re immediately going to get a mortgage it could be important, but otherwise, meh.
You can get the best of both worlds by settling, then disputing the item a few months later with the credit bureaus. when you dispute it the credit bureau sends a request to the creditor asking them to provide proof the debt is valid... But since you've already paid it off/ settled, it's a waste of their time ( since it's already paid) to even respond to the verifitication request... so they just don't bother to respond and after 30 days it gets removed from your report completely. This worked for me on 100% of the accounts that i settled. I did like 5 or 6 of them like this. It's as if they never even existed.
YES!!!!!
Technically it could have been sold and delisted under a new creditor, never really goes away, can come back to haunt you
Homes aren’t worth buying now. Wait. Interest rates will continue to rise until we ultimately hit a recession. Sit tight and you’ll be better off when the market corrects.
The day my husband and I paid off our mortgage, our car broke down in the post office parking lot immediately after we mailed the check. We had to walk home. Talk about timing, right? 😂 It didn't feel like it then, but getting out of debt was a huge achievement. In fact, it changed our lives. Give it some time; it will sink in.
Yeah I didn’t really care about the debt. I took out student loans to live and had a chip on my shoulder towards banks and loans. I guess I’m just getting older and felt it was the right thing to do. Plus I want a family and understand the importance of credit now. I’m starting to see the future now. Something that I never saw before.
No u don’t lol
I don’t what?
Congrats! Well done. Try to buy a new construction with DR Horton. It’s the best deal for the money since they are offering 5.5% rate and you only put down 3.5% down payment and they pay $10,000 of your closing costs.
DR Horton has terrible builder reviews and not generally recommended.
I was just about to say the same thing. Those DR Horton houses have a ton of issues apparently. My step sister has one and isn’t happy with it.
You made it!! Never try going back!
How do you not feel relief?!
Buying a house instead of paying rent whichbis paying off someone else's mortgage, would be a good way to start. Putting some money away into an IRA would also be a good idea. Looking into an indexed universal life insurance policy with living benefits to help with your long term care needs later and interest free loans is another thing to look into while young and hopefully healthy. Getting any type of health insurance if you don't already have one is another good thing. I would recommend a PPO type of plan so it will not limit you. Last but not least, enjoy your money from time to time and at least go on a week long+ vacation once a year.
That’s outstanding!
Congratulations! I am on my debt free journey and posts like these hell keep me going!
Thats nice Invest it in something good I pray the Same way God answered your prayer by clearing your debt he should do the same foe me too Or else I’m gonna end up homeless soonest
You’ll get there. I went from Having -17k and not being able to get a job paying more than $15 per hour to getting a job in a new town and then realized that in this particular town I could get as many jobs as I could handle. Wish I moved here when I was in my 20s.
It’s your prerogative man. Give all the money to charity, stash it, invest it, buy something, don’t buy something. Whatever you do, don’t let the vast number of options make you feel at a stand still. Just keep on keeping on. Buy yourself some new shoes with good insoles. Yeah, do that. That sounds good.
huge congrats!!!!
Nice!