Today marks a very significant milestone in my financial life. I paid all the remaining amount of my mortgage loan in the amount of Php126, 000 ($2, 423). I feel very ecstatic over the thought that I am finally debt free. It is a very liberating feeling to know that my primary home is now safe from foreclosure because it is now fully paid. Hooray! I am now debt free.
The commitment to Get Out of Debt
It was 4 years ago that I started focusing on paying off my debts. I listed all my debts and I paid off the smallest amount until what was left was only my mortgage which of course is the biggest one. Although my debts were tolerable, it was a source of feeling of uncertainty because I do not know what the future holds. I did not have several income streams back then and I only relied on my salary (face palm).
How did I became debt free?
- I made a commitment to be debt free. I listed all my debts and put a time line on when I should be able to fully paid each of them.
- Started paying debts with smaller amount. It is my way of motivating myself through the progress that I made since smaller debts are easy to crush.
- Track my every payment progress. I committed to funnel all windfall money to paying off my debt.
Those are the simple ways I did to be able to crush off my debt. There is so much joy in having debt freedom.
Now that I am debt free, the question is, will I ever enter into debt again? You might gasp with my answer but yeah, it is a resounding yes.
I will be using debt as a leverage. However, I will be very conservative and will use debt only in cash flowing / self-liquidating assets like real estate.
There you have it folks, have a great day and happy debt-crushing!
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Congratulations! Great plan for future debt leveraging for investment property. Yes it would be even faster if you had extra income from side hustles but its ok you made it!
Thanks for your comment Najibah. Yes, use of debt as leverage is considered good debt.
Good job Mrs MFB!!