My Debt Journey

You're wondering why the total doesn't equal $260K.

I paid off $24K by closing my 401k just a few months prior to this. 

(Not my finest moment)

Seeing this $16K in annual interest expense was a significant turning point.  I would never get wealthy if I continued paying this interest.

Actions I took:

- Wrote out all my debts and their interest rates

- Calculated the annual interest expense

- Updated this tracker every paycheck

I hadn't made any progress on the debt, but my annual interest expense was down to $13K.

Actions I took to lower the interest expense:

- Refinanced my house to lower interest rate

- Refinanced my car to lower interest rate

- Consolidated high-interest credit cards into lower-interest debt

I sold a duplex for $8K less than I had paid for it 4 years earlier.

Even though I sold it for a loss: 

- it relieved so much stress 

- my total debt reduced significantly

- my annual interest was cut in half

I also started using 0% credit card deals this year.

I was getting good at living lean.

I reduced my expenses and put every extra dollar toward the debt:

- cut down on groceries

- lowered my utilities

- stopped clothes shopping

- reduced eating out

Paid off $30K in one year.

I continued doing what worked:

- Lived lean

- Prioritized expenses

- Took advantage of 0% credit card deals

- Got a raise at work

Paid off $50K in this year.

I was getting so close to paying off my debt at this point.

There was only $10K of regressive debt (bad debt) remaining 

and $53K of progressive debt (debt on appreciating assets) remaining.

Finally paid off all debt with the help of selling my fixer upper home!