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.

Debt Management

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!