I have been struggling with a huge amount of debt since I finished my degree seven years ago, did some travelling and bought my own condo four years ago. On September 1, 2010, I owed $43,678 in total (not including my mortgage)! I have been bringing that amount down and today on January 15, 2012, I owe $26,201 (not including my mortgage). Still a big amount! I have been following other personal finance blogs over the last year to learn how to become more frugal and continue being motivated to pay the debt and build up some savings as well. Since many have shown that having their own blog has helped, I decided to create one as well which will show my journey into having freedom from debt. I have learned to understand what mistakes I have made to get myself in this position and what to do to prevent it from happening again.
My goal for 2012 is to pay $15 000 towards my debt and to look at creating opportunities for more income apart from my full time job. I also want to continue building up my savings to have $2000 more to have a total of $4000.
Eventually I want to be able to know that the money I make is mine and not that I owe money from each paycheque to debt.
How long will it take/has it taken you to pay down your debt?
Hello. Saw your blog from a comment you posted on another blog. Good luck with your goals! Whatever how much your debt is, the good thing is you are taking actions and it will go down :-)
ReplyDeleteI also think you should always keep an emergency fund so you don't go into more debt if something happens. And if you also manage to earn more then you will really kill that debt fast! :-)
I am working on both. I have a small amount so far ($500) in an emergency fund apart on my savings and trying to see about earning extra income. I began a course on how to do income taxes so that maybe by the 2013 tax season I can begin to prepare income tax returns.
DeleteAnd congratulations about reducing your debt nearly by half! That is impressive!!
ReplyDeleteThank you! Still feel like it is quite large but will feel better when the total drops below $20000 (hopefully by this summer).
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