Financial debt can sometimes be considered a necessary evil, like when buying a home or paying for college. It is easy to quickly feel consumed by interest rates and debt. There is hope, however, as demonstrated by these four people who made it their goal to become debt-free.
Accountability and Simplicity
Joe from Austin had a great job and an MBA but he also had $270,000 worth of debt. To tackle this debt, he decided to cut out or sell frivolous purchases and rent out a room in his home to supplement his income. To keep himself accountable and demonstrate his journey, he began a lifestyle blog. Joe kept his commitment to living minimally and was eventually able to pay off his student loans and live debt free.
Freedom in Downsizing
Robin and her husband from Georgia were overpaying for their mortgage and had too many personal debts. The couple first paid off loans for couches, a boat, and car loans. Their next step was to downsize to a smaller home with a smaller mortgage. After living on only 50 percent of their income, the couple was debt free within three and half years. While downsizing might not always be an option to a lot of Americans, that doesn’t mean that you can’t look for lower rates on your home. Interest rates change daily so you’ll need to see where the interest rates are for your situation and see if you can refinance. This can lower your mortgage payment and help you tackle other personal debts.”
Dedication and Determination Pays Off in the End
Paying off $74,000 in two years is no small feat but Matthew from New York proved it can be done. By living frugally, Matthew was able to break up his loan payments into multiple payments a month, which cut down on interest. Eventually, Matthew wrote a book that detailed how he became debt free in only two years.
Paying it Forward
Ty’Lisha and her husband found themselves drowning in $100,000 of debt. After eight years of implementing the snowball debt reduction method they became completely debt-free. An example of the snowball debt reduction method is where a person will list all of their debts, ranked from highest to lowest in amount, and then begin aggressively paying off the smallest debt first while making minimum payments on the higher debts. This method worked for the Houston couple and now they have developed an app that helps others reduce their debts as well.
Paying off debt requires a lot of dedication and planning but these four individuals show you that it can be done. By cutting out unnecessary spending and implementing debt reduction methods, you can join the ranks of those who can proudly say that they are debt-free.
If you enjoyed this article, check out some of the other inspiring stories on our blog!