Welcome to my debt progress page. Here you can observe and share in how I have been paying off our mortgage debt. To see how I have been progressing since 2007/08 scroll down a little bit.

What is the Debt?

The debt is our mortgage debt. We have 2 loans (1 x Variable and 1 x Fixed interest).

Why share my Debt progress?

I am publishing my own experiences so that I stay focused and motivated on what is one of my biggest life goals (Eliminate all my debt). I also hope that this page will inspire others to stay motivated when paying off their own debts.

Working at paying off debt

We split our $315,000 mortgage debt into the following types of loans:

  • 1 x $180,000 Standard Variable Rate Mortgage
  • 1 x $135,000 Fixed Interest Mortgage (Fixed until June 2012)

Why did we split our loan?
Well at the time it seemed like the smart thing to do. With interest rates in Australia heading up towards 10% – it was a no brainer. Then the GFC hit, interest rates tanked, and we were left with a fixed interest rate mortgage of 7.55%. Meanwhile the standard variable dropped to about 3 to 4%.

Would I do it again?
Probably, only because the prospect of paying 10% interest was more than I had budgeted for and it was the prudent thing to do.

What we got for our money

We bought a block of land and a house. I did a 4 part series on building a house which you can read here.

Land

House

Below are tables and charts of both of our loans. I have also included charts showing the interest which is being paid back onto the loan each month.

Note: These values are not 100% accurate as I have moved money around for various life reasons, but they are about 99% the same as you would find in my bank statement. Also, if you hover your mouse over the charts it will give you actual values.

Variable Mortgage

We paid this loan off in January 2014 (all $180,628 of it) less than 6 years after we started. Now it is time to focus down the other loan!

(2008) – Start May 08

– Start of Year Debt: $180,628
– End of Year Debt: $167,230
– Total Repaid: $23,334
– Bank Interest: $9,936
Principal Repaid: $13,398

(2009)

– Start of Year Debt: $167,230
– End of Year Debt: $148,057
– Total Repaid: $27,953
– Bank Interest: $8,780
Principal Repaid: $19,173

(2010)

– Start of Year Debt: $148,057
– End of Year Debt: $125,376
– Total Repaid: $31,973
– Bank Interest: $9,292
Principal Repaid: $22,681

(2011)

– Start of Year Debt: $125,376
– End of Year Debt: $69,544
– Total Repaid: $62,967
– Bank Interest: $7,135
Principal Repaid: $55,832

(2012)

– Start of Year Debt: $69,544
– End of Year Debt:$31,157
– Total Repaid: $41,370
– Bank Interest: $2,983
Principal Repaid: $38,387

(2013)

– Start of Year Debt: $31,157
– End of Year Debt:$1,836
– Total Repaid: $31,362
– Bank Interest: $2,041
Principal Repaid: $29,321

(2014) ***PAID OFF***

– Start of Year Debt: $1,836
– End of Year Debt:$0
– Total Repaid: $1,836
– Bank Interest: $0
Principal Repaid: $1,836

Fixed Mortgage @ 7.55% interest per annum for 5 years

(2007) July 07

– Start of Year Debt: $135,011
– End of Year Debt: $132,385
– Total Repaid: $7,200
– Bank Interest: $4,574
Principal Repaid: $2,626

(2008)

– Start of Year Debt: $132,385
– End of Year Debt: $126,788
– Total Repaid: $15,524
– Bank Interest: $9,927
Principal Repaid: $5,597

(2009)

– Start of Year Debt: $126,788
– End of Year Debt: $122,047
– Total Repaid: $14,252
– Bank Interest: $9,511
Principal Repaid: $4,741

(2010)

– Start of Year Debt: $122,047
– End of Year Debt: $116,712
– Total Repaid: $14,389
– Bank Interest: $9,054
Principal Repaid: $5,335

(2011)

– Start of Year Debt: $116,712
– End of Year Debt: $110,959
– Total Repaid: $14,390
– Bank Interest: $8,637
Principal Repaid: $5,753

(2012)

– Start of Year Debt: $110,959 (*** End of 5 year fixed rate – We started paying this down quickly once if came out of its fixed period)
– End of Year Debt: $79,300
– Total Repaid: $39,288
– Bank Interest: $7,629
Principal Repaid: $31,659

(2013)

– Start of Year Debt: $79,300
– End of Year Debt: $57,020
– Total Repaid: $25,961
– Bank Interest: $3,681
Principal Repaid: $22,280

Thanks for following along. It has been a fairly big journey, but the end is now firmly in sight. Please consider following me on social media here
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