(Mostly venting) I’m on a journey to become debt-free, but I feel like I’m falling behind in life because of it. I’m 33, and my husband and I moved in with my parents because rent was getting too expensive. It’s a small house with just one shower not the ideal setup. Anyway, I’m on track to pay off my credit card debt by October and my student loans by February. Our car has been paid off for a year now. I’ve been aggressively putting all my money towards paying off debt, so I have almost no savings (high-interest credit card debt has been my priority to get rid of ASAP).
I wish we could move out and buy a house, but with the current market and economic situation, I don’t see that happening anytime soon. My husband really wants us to get our own place again, maybe an apartment for a few more years, so we can save up without debt hanging over us. But I worry that we’ll be stuck renting for too long. I can’t help but feel like I’m falling behind compared to my friends who bought homes before 2020 and are starting families. I know I shouldn’t compare myself, but I’m anxious about my age and how far off everything still seems.
What distinguishes you from your friends? You will be debt free in a matter of months, while they probably have a lot more debt than you ever had (wait till you own a house and the furnace needs to be fixed). You are simply going about things in a different order the proper order while still being rather young. Your funds will accumulate considerably faster without those interest payments, and eventually you’ll buy that property. I wish I had realized how important it is to be debt-free at such an early age. All of that money that was squandered on interest payments to banks should have been invested in a savings or brokerage account.
My brother, there are a lot of people who, since they have payments for everything, are always one calamity away from losing everything. They are extremely overleveraged and will never have enough money to get by. The better decisions are being made by you.
In retrospect, it’s okay to have a car payment and 20/20 student loan debt. Everything should be on the CC. After paying that off, place the remaining amount in savings for a home.
Well done for paying off your debt. It is always the wisest course of action. Getting a house would have been difficult or impossible with a lot of debt.
All of the experiences you missed are irreversible. However, debt may always be paid off.
Why are you wasting your time when you’re so close? Complete this. In your 30s, you’ll be something almost no one else is: free of debt. Next, pay off your auto debt, put 15% down on your house, ensure that your mortgage payment does not exceed 25% of your monthly income, and invest $600 a month in index funds. You’ll be rich when you retire.