I became debt free in December, 2020

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Living a debt-free life is such an awesome feeling. In today's world living debt-free is very rare because you have one or the other loan to take care, be it student loan, home loan or even personal loan. People living on less than what they earn or having no loan and have a case for emergencies are need of the hour after looking at what had happened in 2020.

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PC: Pixabay.com

Until last week I was not debt-free as I was having a Home Loan. I have taken a home loan 6 years back to buy my first home and gift it to my parents. I have taken it for 10 years but I knew that I have to pay off early so that I don't want to keep any debt. It took 6 years and I have paid off the loan.

Thus as of now, I am debt free and not intended to take any loan further but not really sure about the future. I have also encountered people who actually do not pay off the loan but invest, that is also a good strategy. But for me paying off the loan is much more important than investing as I can be debt-free much earlier.

Now I have extra money each month to invest in any investment I want and thus given me the flexibility to take the risk for some higher returns. Also, one thing I have to make sure that I need to commit to not go into debt again. It means I have to stick to a budget and thus save money for bigger purchases.

Are you debt-free, if not what's your plan to be debt-free.

Posted Using LeoFinance Beta



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16 comments
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Congratulations mate on being debt-free.
I was free in the beginning of 2019 but now I can't say I am free. 😂

But I am striving to.

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Yeah when you are debt-free, you have to remain like that. I have to practice that.

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Congratulations on getting into the black. It's a good place to be.

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(Edited)

Good for you! I will be debt-free in the next few months :) First time in many years. It's a wonderful feeling! I don't want to have even a credit card... I wish to stay debt-free for as long as possible.

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Great that you have a plan in place. For me, it was my first loan so happy that I can close it super early. I do have a credit card, but usually, I keep it for rewards.

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Congratulations.

I have a mortgage still, but the house is worth a lot more and rented, so that pays for itself.

I also took out another loan for $12K recently, at only 3% interest it seemed silly not to - to buy some land, it's relatively easy to pay back over a 5 year term.

Also I'll be paying back less as fiat just devalues and devalues!

The other option was selling my investments which I think will grow faster than that interest rate.

So it's not really 'debt' if you factor in I could just pay it off immediately if necessary.

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That's great to know. Getting a loan at 3% interest is awesome, and I think your strategy is great. If I would have got a loan in that less interest I would have bought some land myself.

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It was kind of odd, I looked at my pre-existing offers with three different banks I'm with - my rates were 16%, 9% and 3%.

They're all UK banks, no idea why the rates varied so much. It's frankly a bit bizarre.

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Congratulations.
It's not easy to become debt free.

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Thanks, yes it was not easy and also would love to stay like this forever if I can.

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Wow, congratulations. This is really a great feeling. I have been into debt for the past 5 years. Last year when I got married, I took a big loan and it would take at least 3 more years for me to complete it.

In addition to the loan I already had, I had to do a top-up on that to bear the covid medical expenses as well for the family. 2020 had been the worst year in that perspective. I still have around 10 lakh to be cleared.

Yeah becoming debt-free is a great feeling. I'm looking forward to having that feeling soon. I think only then I will be able to make some peaceful spending and investments.

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Thanks, man. yes, it is a great feeling but the only thing is I have t be extra careful now to not get into debt again. Yes, I guess I have reduced the spending and investment to be debt-free but along with that I have kept emergency fund so that I don't have to take a loan again.

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