Debt Pay Off Part 1 – Car & Mortgage Pay Off

This is part 1 of a series of how I paid off $95,778.5 in less than 3 years.

In this series I will talk about what I did to get rid of my car loan ($15,087.21) and mortgage debt ($80,691.29), as well as some things that I learned through out the whole process of buying my home and paying it off.

The first thing I did was made the decision that I was going to get rid of this debt. Looking at $95,000 worth of debt can make anyone doubt they can pay it off. Without making that decision, I had no chance. There were several people that told me that it was impossible to pay off a mortgage. So I just stopped talking to those people about paying off my debt. I still haven’t told them I paid it off! Why bother!

In 2009 I discovered Dave Ramsey while I was browsing through the radio. I couldn’t believe what I was hearing. People were calling in to tell Dave they paid off hundreds of thousands of dollars in debt. I immediately got hooked and started listening daily! I still listen daily because Dave gives great tips on saving, budgeting and starting a business. Plus it keeps me motivated!

I remember hearing Dave say if you can’t pay off your car loan in 18 months sell it. At the time I had around 18 months left if I made additional payments, so I felt good because I didn’t want to get rid of my car. Dave Ramsey often talks about his baby steps. Baby step 1 is having $1000 in a starter emergency fund, baby step 2 is to get rid of your debt except your mortgage. In February of 2009, I had around $7500 sitting around, so I took $6500 and put it on my then car loan balance of $15,000 and I left $1000 for my starter emergency fund.

After putting $6500 on my car loan, I became seriously intense about paying it off. I made as many additional payments as I could.

  • I cut my spending big time by tracking every dollar I spent
  • I stopped eating out
  • Cut back on buying clothes
  • Any bonuses I got at work went towards my car loan
  • I used my tax refund to pay it down

Once my car loan was paid off I began to attack my mortgage. Check out Part 2 here


  1. Bria Miller says:

    Buying a car is very easy now because banks are providing loans with some formalities. A lot of low income group are getting benefited through such service. But before going to buy a car, one should take help of financial experts for proper guide. One should prefer short-term loan because in short-term loan the interest rates are generally low. Cut down on some expenses by which one will save money to repay the loan
    Mini Cooper Repair Oxnard

  2. Arthur Daniels says:

    First, congratulations for getting rid of your car loan and mortgage debt. Hats off to your enthusiasm because seriously after looking at $95,000 worth of debt no one can think of paying it off. Really appreciate the approach you followed to clear up such a huge debt. But what I really think that everybody else might not be as lucky as you. For instance, there might be possibilities that you owe more on it than what your home or car is worth. In order to minimize the amount of principle at mortgage then you should refinance your mortgage from the experienced Mortgage consultant and will advise you based on your requirements and objectives. Moreover if they think there's a solution to your situation you may not have considered, they'll suggest it.

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Debt Pay Off Part 2 – The Mortgage

This is part 2 of a series of how I paid off $95,778.5 in less than 3 years. I was 20...