Part 3: Watch Me Knock Out $5000 In Debt (Case Study)

Part 3 of Case Study Series

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It’s been a little while since I’ve updated this case study of me knocking out $5000 of Debt.  That’s the bad news, the good news is that I’ve been pushing on and wiping the debt out and have made two additional lump sum payments since the last update.

 

I’m way ahead of the Debt

If I stayed on the course that my original lending institution wanted, I would be in debt for around another 8 – 9 months out before wiping it out.  At the level I’m going at a few more months or less should clear it out.  That’s the lesson here, don’t make financial institutions dictate when you should be done with a loan or how to pay it down.  You can save yourself a lot of interest and time on the loan by just following my way of paying down debt.

 

You might be asking just how far ahead of the debt am I?

Well, let’s put it this way, I talked to a teller on my last payment made and asked him if it mattered that I showed up 15 days later than scheduled to make the payment.  His answer was that it didn’t matter as the bulk payments I’ve been making on the loan were such that it really doesn’t matter if I made late payments based on how I was paying.

 

I could skip a month here or there if I wanted, but I’ll keep paying to wipe out the debt instead.  That provides less financial stress which is an important component of wiping out debts.

 

 So, since the last updated case study of knocking out $5000 worth of debt, I have made two additional principal busting payments and the balance is looking good. 

 

How I feel about the progress

Well, let me just say that it really feels great to know that I’m ahead of schedule and know that the lending institution will make almost no interest on the debt based on the payback attack. I’ve started rewarding myself every time I make a payment which is important as it allows me to feel better about the debt and also gives me peace of mind that the debt will be gone soon.

 

In any case, another lesson here is the quicker you can get rid of debt, the faster you build real wealth – which is important to your bottom line. Living within means is and should be balanced with a lifestyle that you enjoy, but still doesn’t allow you to go overboard with your Finances. 

 

So, just how does my debt busting on the loan look now?   Here’s a snapshot below:

 

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$2,256.77 Balance after last payment of $735

Pay it down Debt Balance

 $3,549.11

$2,991.77

NEW Balance >> $ 2,256.77

 

Percentage of Debt written off    >> 55% of Original $5000 Loan

 

Total Principal payments towards loan   >> $2,743.23

 

Feeling of knocking out DebtPriceless!

 

Hopefully, you enjoyed this third case study of me vs. $5000 in Debt.   Will I make the goal of knocking off this debt in the time I want and save massive interest?  Stay tuned and never miss another blog post by joining the RSS Feed by email.  

 

If you haven’t already,  pickup your FREE copy of my original Financial Blueprint to Wealth:  ‘Golden Nuggets – 25 Absolute Steps You Need for Financial Freedom that can help put you on the road to becoming Financially Independent. 

 

 One more thing before I go, know someone or others that this post could help?

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Category: Case Studies, Debt Freedom