Towards being debt free: Update 2013

21. juli 2013

This is an update to my story of getting out of debt. It has also proven to be a story of my life, or at least the events that have taken place since my decision to get out of debt.
Main events that took place since my last update:
Since my last post my life has changed quite a bit.

A year ago my wife decided to leave me, and I now live with my two teenagers. in a rented house. I work in a hotel.

My eagerness to get out of debt is still strong, but being divorced is expensive because a lot of the cost of living is the same, but the household income is half of what it was. 

I owe money to the IRS and the bank, but we have just managed to sell the summer cabin and my new debt situation is listed below. 

Some of the loans were taken over by my ex-wife and some are now half for me and half for her.
Debt Pricipal
May 2009 October 2011 July 2013
Mortgage 1 286,667 Payed off Payed off
Mortgage 2 178,333 Payed off Payed off
Mortgage 3 159667 159,667 Payed off
Bank loan 1 101,000 119,500 60,869
Bank loan 2 64,333 Payed off Payed off
Bank loan 3 58,333 Payed off Payed off
Private loan 1 1,833 5,000 Payed off
Private loan 2 64,333 Payed off Payed off
IRS tax debt 0.00 0.00 11,000
Total debt 883,499 286,667 71,869
As you can my debt has been reduced substantially. My net equity equals my debt, a minus 72,000.
My loan to the IRS will be payed off in a year or two. After that I will put maximum effort into paying down the bank loan.

I hope to be debt free in no more than 5 years.
My plan going forward:
  • I have started a separate bank account for fixed expenses, to which I make a monthly transfer.
  • I have also started an emergency account where the goal is around USD 2,000.
  • I will stay a renter at least until my tax debt is payed off.

I will appreciate your comments.


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