Today, I have a guest post featured on The Frugal Farmer. Here’s a snippet, but please click on over to read my Debt Free Story.
How much debt did you start out with and what kind of debt was it?
I was fortunate that the only debt that I carried was from my mortgage. The mortgage debt was $400,000 on a 15-year loan. In order to afford the mortgage, I had to get three other roommates. Even then, it still took over half of my paycheck in order to pay the mortgage bill each month.
What was the “eureka” moment when you knew things had to change?
Initially, I was super excited to own a home. I was 23 and thought I knew everything. In hindsight, I was really fortunate to buy when I did. It was just before the housing market peaked. So even when the housing market cratered, the house was never underwater. I can’t say that was the case with everyone else in my neighborhood as some took bloodbaths.
After about a year, the new home smell wore off. Watching half my paycheck go out the door became a miserable feeling. It was then when I became obsessed with paying off my mortgage. Every bonus that I got and every extra dollar that I had laying around in my bank account started going right towards the mortgage.
I built excel amortization tables to see how adding the extra money towards the mortgage principle would impact the final mortgage due date. There was something so satisfying watching the date creep up each month when I applied new principle. I was running at this new goal with ultimate determination.
Click over to The Frugal Farmer to finish reading my guest post!