Case Study Complete – I’ve Knocked Out $5000 In Debt !

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Fresh off my last case study of knocking out $5000 in Debt, I took a bit of a hiatus on posting the progress and instead decided to work on knocking out the debt as an even higher priority.  Well, needless to say it’s paid off because I have now knocked out the original $5000 worth of debt!

 

I just really want to thank those that followed me on this journey of ridding myself of this debt and hope that I’ve been a good case study of what you can accomplish when you put your mind to  focus.

 

The thing that I now enjoy the most of getting out of that debt is the feeling of being debt free in that a burden has been lifted.  Not only that, but now I get to ‘put away’ what I originally was paying on the debt to building real wealth.  Don’t get me wrong, it does take a bit of self discipline, but the reward can be great.  It’s also really pays to reward yourself for the effort!  I know I am and I’ll let you know in another post how I decided to go with my reward.

 

How I Ended the Debt Once and For All

Ok, so just how did I go about it you ask?  Well, from my last post on knocking out debt – case study, part 3 – I actually had a running balance of  $2,256.77 left to pay off.  The first payment since then was around $600, leaving a balance of $1,656.77.  Notice, my normal payment would have called for about $400 plus to cover principal and interest, but I paid around $200 more to cut interest /principal.

 

Around 20 days later, I paid another $600 towards the debt, leaving a paltry sum of $1,056.77 left to pay off.  That’s two tires on some people’s vehicles, so not a big deal.

 

Here’s where it gets interesting…

 

I was able to free up cash flow on a small investment that gave me an additional $3,500 injection into my bank account.  Most people would have went ahead and had a good ‘ol time with that money, but we’re not most people, right?  So, instead, I bit the bullet and took $1,000 of that money and some from savings to pay off the complete balance of the $1,056.77 of the original $5000 loan. Not only that, but I banked the rest of the money freed up into another investment that pays a decent dividend – annually.  Read my 70 / 30 rule post and follow it to grow rich.

What’s Next?

Glad you asked.  I’m actually going to be looking at my debt – head on for my mortgage on the house.  If you ask most financial ‘gooorooz’, you’ll know that the house and car usually make up the lion’s share of people’s debt.  Being debt-free, car wise, the natural next step is to tackle the mortgage.

 

If you want to retire early or someday become wealthy, I’m helping to give you the tools to succeed.  Why?  You see when I help others with their financial life, it also helps me immensely.  I see life from another angle, not only that, but I gain results even quicker.

 

I really hope you got a lot out of following my case study on knocking out $5000 worth of debt and that it can become a good resource in helping you with your own debt.

 

Pay it down Debt Balance

$3,549.11

$2,991.77

$2,256.77

  • NEW Balance >> $ 0.00
  •  Percentage of Debt written off >> 100% of Original $5000 Loan
  • Total Principal payments towards loan >> $5000 (plus a puny bit of interest 🙂  )
  • Feeling of knocking out $5000 in Debt – Priceless!

You may also want to read my earlier case study posts if you missed them:

 

How do you handle debts?  Are you building a better financial future for you and your family?  I’d be interested in seeing your comments below.

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Category: Case Studies, Debt Freedom

  • Dwight ,

     I got inspired by your actions man and  paid off a $3000 credit card bill myself.

     By selling  a  fancy mazda  and buyng a cheap used toyota that drives super. Then, 
     took that savings from there and paid off that credit card debt in 2 months man.
    I am HAPPY and LIGHT now

  • Dwight Anthony

    Awesome stuff, congrats on getting out of that level of debt!

  • Dwight Anthony

    Sure, Thanks for your support. Readers like yourself make it worth it.

  • Lisa O

    Congratulations! Any thoughts on paying off student loans while in graduate school (aka taking out more student loans)?

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