A Shockingly Simple But Overlooked Method for Getting Rid of Debt

Mr. Enchumbao

I work for a large investment management company helping people save for traditional retirement. During my spare time I help others save for financial independence and early retirement by writing for Enchumbao. My journey to FI began in 2012. I was in a lot of debt back then but I turned things around and became debt free a few years later. My wife and I reached financial independence in 2017 and are preparing to retire by 2020.

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6 Responses

  1. LM says:

    I’m a big fan of the Dave Ramsey system of the debt snowball and forgoing credit altogether. Many people will attack me because I’ve decided to never borrow money again, for any reason. What they are missing is the list of people I’ve seen whose lives have been destroyed by debt. Even those people that “pay their balance in full” every month. Debt gives you a false sense of security, and given the perfect storm it is a loaded gun waiting to harm somebody. If I can’t afford it, I don’t buy it. If I can buy it, I pay cash or debit.

    I agree with you: live below your means, get laser focused, and eliminate debt. But if you want to make sure you never go back, you have to leave the room and toss out the keys after you are done cleaning it.

    • MrEnchumbao says:

      Yes, I am big fan of any system that it’s well designed to get you to become debt free. I think people just don’t learn the lesson of why they got in trouble in the first place and that keeps them trapped, making the same mistake over and over again. Not borrowing again it’s a great decision on your behalf and if you have an FI mindset, I’m sure you’d get attacks on other fronts as well. People only see what they want to see. If they want to follow a certain path they tend to lean on the positive side of things and vice versa, if they don’t want to go in a certain direction, they’ll concentrate on the negative. They’ll give you all kinds of excuses on why you need to borrow and what you’re missing out on from not borrowing. And just like you said, they set themselves up for failure when the perfect storm comes. Great comment and congrats on living a debt free life!

    • No man’s credit is as good as his money. Take that from someone who repairs credit for a living. Most who will attack you are defending themselves because it takes exceptional discipline not to borrow, specially when you have access credit and loans. Keep it up.

  2. Mrs. Goodlife says:

    Great article! I think the biggest challenge for people to become debt free is changing their behavior of buying things just because you want it. I have been there and still fight the urges now and again to buy something I don’t need, but really want.
    My advice to become debt free when it comes to credit cards is to consolidate to a low interest credit card (if you have a transfer offer of 0% or 3%, that works much better than 20%+), put all your cards away ( I ‘ve gone as far as shredding them) and pay the debt off as soon as possible. Any extra income should be going towards that debt. Once you pay it off, don’t loose the habit. Invest instead in a retirement account of investment/savings. We have eliminated over $30K in credit card debt and saved over 6 figures just by doing this.

    • MrEnchumbao says:

      Hi Mrs. Goodlife, happy travels! I checked your site the other day and noticed that you’re living the life in Hawaii. Very nice. Great advice on how to reduce credit card debt. I even heard of freezing the credit card in ice cubes to resist the temptation… Very good point on moving on to investing the proceeds after paying off the debt to keep the habit. Congrats on your 6 figures savings! It’s awesome to hear inspirational stories like yours. Thanks for reading.

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