Debt Reduction

Debt Avalanche

By Debt Avalanche

There is an elephant in the room when it comes to debt reduction that nobody seems to want to talk about — that people want to keep their current lifestyle as much as possible while reducing their debt. The fact is that 99% of people that begin the debt reduction process do so while trying to keep their current lifestyle in tact as much as possible. I decided that for me this was the wrong way to approach debt reduction.

My girlfriend (at the time) and I were engagesd when we looked at our debt. It wasn’t a pretty sight. We had $125,000 in debt and we were supposed to get married in 9 months. I made the decision that we had to be debt free before we got married or we would call off the wedding. There was a lot of screaming and shouting, but in the end we decided that we wanted to start our life off debt free.

We did it. We paid off all the debt. It wasn’t like we had huge salaries, but we did what most people aren’t willing to do. We said that we didn’t care about our current lifestyle and we would do whatever it took to reduce the debt. We did some things that I think most people would consider insane, but I don’t regret any of it. Had we gone the normal debt snowball debt reduction route, it would have taken us 5 – 10 years to pay off the debt. Instead, we found ourselves debt free after 9 months with a new appreciation of what is and isn’t important.

We chose to do a debt avalanche. The debt avalanche concept is something that won’t appeal to most people because if requires the complete and thorough rejection of your current lifestyle. It forces you to question everything and your true willingness to get rid of debt. It would scare the hell out of most people, but it comes with rewards.

You get your life back debt free in a fraction of the time it would normally take to pay down your debt. You break free of all the lifestyle boxes that you have built around you and continue to hinder your progress of getting out of debt. You literally reinvent your life.

It’s tough. It’s painful. It’s humbling. I ended up doing things that I never thought I would do. But I got rid of my debt and I came out of it knowing that I will never be in debt again.

Over the next few months I am going to share the minute details of the choices we made to get ourselves out of $125,000 in debt in 9 months. I will lay out the sacrifices that we made, the gut wrenching decisions that we ultimately embraced and what I would have done differently if I had to do it all again. I expect that this will not be of use to most people, but I know that there are others out there who know that their current debt reduction plans will take much too long and are looking for a different solution even if that means going hard core debt avalanche.

Welcome to the reflections of a far from typical debt reduction journey…

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1 thought on “Debt Avalanche

  1. I’m looking forward to those details! To come so far so fast, your debt avalanche must have included getting out from something big (like a house) or cracking your retirement nest egg (although I would guess you and your future wife were very young). I am just guessing, which is all I can do for now.

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