How We are Paying Down Our Debt Since 2019
Time to pay down the debt that we picked up. As always we are tracking this via an Excel sheet with validation from the Empower app. The app is FREE. It used to be known as Personal Capital.
When it comes to wealth-building, half of the equation requires that you pick up assets. The other half requires that you pay off liabilities. Every month, we track our net worth. This includes two mortgages, one auto loan, and credit card debt. We also track your investments via the link, if you click on the photo below.
For me, it’s therapeutic and helps keep my mind sharper. Most people run away from their debt. Confronting it forces you to know that you are the financial villain of your own story at times.
Table of Contents
Things that helped us pay down debt quicker?
I’m not a fan of people sharing their final numbers without a full context. It’s only fair to paint a real picture. For one, although my wife and I didn’t come from money, we ended up in the Washington, DC area.
That’s a massive factor since our gross income exceeds the median of around $80,000 annually by 200 percent. Additionally, we are a dual-income household. That’s double the firepower when confronting debt. We also bank together so there is one main pot where all our income comes into. Beyond that, we invest first and spend second. We throw as much as possible into our 401ks, IRAs, HSA, and after-tax brokerage.
This forces us to live within our means. The rest of the dynamic is all cash flow management. Another big component is that our housing cost is lower than 25% of our gross take-home pay. The last part can change the trajectory of any household.
Aiming for less Debt
I think the best asset to debt ratio is 4 to 1.
For example, if you have $1M in assets, you should have no more than $250,000 in total liabilities. You might start upside down with student loans but that’s why it’s a goal. We started with $150,000 of those easy loans.
One of the sour points is that we have an expensive new car loan. I would not recommend nearly $1,000 monthly auto payments to anyone. So that has to go asap if you can buy used or old to avoid large payments.
Consumer debt is a problem for most households. Opt out of spending, especially when that expense has a health penalty. For example, too much eating out can leave you overweight. Health care is getting more expensive. Any time you spend on credit, in your mind, think of it as paying nearly 3x the price in interest and investment opportunities.
Full Breakdown of our Debts Since 2019
| Month/Year | Credit Cards | Mortgage(s) | Other Liabilities | Total Liabilities | Dollar Change | Percentage Change |
| January 2019 | $4,341 | $215,696 | $107,913 | $327,950 | -$4,232 | +1.29% |
| February 2019 | $1,709 | $215,084 | $107,477 | $324,270 | -$3,680 | +1.13% |
| March 2019 | $1.00 | $214,469 | $111,683 | $326,154 | +$1,883 | -0.58% |
| April 2019 | $347 | $213,853 | $110,622 | $324,821.83 | -$1,332 | +0.41% |
| May 2019 | $124 | $213,234 | $110,131 | $323,490 | -$1,332 | +0.41% |
| June 2019 | $3,466 | $212,614 | $109,632 | $313,843 | +$2,222 | -0.68% |
| July 2019 | $3,559 | $211,991 | $108,996 | $324,546 | -$1,166 | +0.36% |
| August 2019 | $2,713 | $211,366 | $108,148 | $322,227 | -$2,319 | +0.72% |
| September 2019 | $36.99 | $210,739 | $107,363 | $318,139 | -$4,089 | +1.29% |
| October 2019 | $1,370 | $210,110 | $106,519 | $317,999 | -$140 | +0.04% |
| November 2019 | $3,956 | $209,478 | $105,762 | $319,196 | +$1,197 | -0.38% |
| December 2019 | $11,223 | $208,209 | $107,972 | $327,405 | +$8,209 | -2.57% |
| Total | $327,405 | +$1,104 | -0.34% | |||
| January 2020 | $8,654 | $208,209 | $106,942 | $323,806 | -$3,599 | +1.11% |
| February 2020 | $19,557 | $206,109 | $99,089 | $324,755 | +$949.37 | -0.29% |
| March 2020 | $18,552 | $205,463 | $97,820 | $321,835 | -$2,920 | +0.91% |
| April 2020 | $14,729 | $204,815 | $97,374 | $316,918 | -$4,918 | +1.55% |
| May 2020 | $11,405 | $204,165 | $97,066 | $312,635 | -$4,283 | +1.37% |
| June 2020 | $10,022 | $203,512 | $100,309 | $313,843 | +$1,208 | -0.38% |
| July 2020 | $8,457 | $202,857 | $94,441 | $305,755 | -$8,088 | +2.65% |
| August 2020 | $1,994 | $202,168 | $94,061 | $298,224 | -$7,532 | +2.53% |
| September 2020 | $3,337 | $201,302 | $93,808 | $298,447 | +$223.78 | -0.07% |
| October 2020 | $3,442 | $200,605 | $93,555 | $297,602 | -$845.06 | +0.28% |
| November 2020 | $14,524 | $199,935 | $93,300 | $307,759 | +$10,157 | -3.30% |
| December 2020 | $22,020 | $197,759 | $92,919 | $312,698 | +$4,939 | -1.60% |
| Total | $312,698 | -$14,707 | +4.49% | |||
| January 2021 | $23,044 | $197,754 | $92,665 | $313,463 | +$764.80 | -0.24% |
| February 2021 | $21,179 | $197,066 | $92,410 | $310,655 | -$2,807 | +0.90% |
| March 2021 | $15,150 | $196,356 | $92,156 | $303,662 | -$6,993 | +2.30% |
| April 2021 | $34,284 | $195,535 | $92,896 | $321,715 | +$18,053 | -5.61% |
| May 2021 | $30,210 | $194,750 | $91,644 | $316,604 | -$5,111 | +1.61% |
| June 2021 | $28,011 | $193,964 | $91,257 | $313,231 | -$3,373 | +1.08% |
| July 2021 | $24,446 | $193,200 | $91,000 | $308,645 | -$4,586 | +1.46% |
| August 2021 | $17,611 | $192,450 | $90,742 | $300,803 | -$7,842 | +2.61% |
| September 2021 | $17,367 | $190,645 | $90,484 | $298,496 | -$2,307 | +0.77% |
| October 2021 | $13,084 | $189,875 | $90,226 | $293,185 | -$5,311 | +1.81% |
| November 2021 | $17,341 | $189,000 | $89,967 | $296,308 | +$3,123 | -1.05% |
| December 2021 | $10,331 | $187,000 | $89,576 | $286,907 | -$9,400 | +3.17% |
| Total | $286,907 | -$25,791 | +8.25% | |||
| January 2022 | $10,445 | $187,000 | $89,316 | $286,761 | -$966 | +0.34% |
| February 2022 | $7,348 | $186,200 | $89,055 | $282,603 | -$4,158 | +1.47% |
| March 2022 | $7,613 | $185,000 | $88,794 | $281,407 | -$1,196 | +0.42% |
| April 2022 | $7,032 | $184,000 | $88,696 | $279,728 | -$1,680 | +0.60% |
| May 2022 | $1,795 | $183,000 | $88,696 | $273,491 | -$6,236 | +2.28% |
| June 2022 | $1,834 | $182,000 | $88,696 | $272,530 | -$962 | +0.35% |
| July 2022 | $4,373 | $180,950 | $88,696 | $274,019 | +$1,489 | -0.55% |
| August 2022 | $17,902 | $179,950 | $88,696 | $286,548 | +$13,215 | -4.61% |
| September 2022 | $16,469 | $178,750 | $88,696 | $283,915 | -$2,633 | +0.93% |
| October 2022 | $12,917 | $177,750 | $88,696 | $279,363 | -$4,552 | +1.63% |
| November 2022 | $11,544 | $176,750 | $88,696 | $276,990 | -$2,373 | +0.86% |
| December 2022 | $11,209 | $175,000 | $88,696 | $274,905 | -$2,085 | +0.75% |
| Total | $274,905 | -$12,002 | +4.18% | |||
| January 2023 | $5,177 | $174,750 | $88,696 | $268,623 | -$6,282 | +2.34% |
| February 2023 | $6,011 | $173,750 | $88,696 | $268,457 | -$166.26 | +0.06% |
| March 2023 | $0.00 | $172,500 | $88,696 | $261,196 | -$7,261 | +2.78% |
| April 2023 | $9,598 | $171,250 | $143,696 | $324,545 | +$63,348 | -19.52% |
| May 2023 | $7,964 | $170,000 | $143,413 | $321,376 | -$3,167 | +0.99% |
| June 2023 | $12,607 | $168,925 | $142,784 | $324,316 | +$2,940 | -0.91% |
| July 2023 | $16,830 | $167,750 | $142,099 | $326,679 | +$2,363 | -0.73% |
| August 2023 | $17,152 | $166,500 | $52,695 | $236,346 | -$90,333 | +38.22% |
| September 2023 | $12,000 | $165,600 | $52,005 | $229,604 | -$6,741 | +2.94% |
| October 2023 | $8,325 | $164,725 | $51,334 | $224,383 | -$5,221 | +2.33% |
| November 2023 | $5,080 | $163,800 | $50,688 | $219,568 | -$645.44 | +2.19% |
| December 2023 | $8,289 | $162,168 | $50,019 | $220,476 | -$669.56 | +0.41% |
| Total | $220,476 | -$54,429 | +19.80% | |||
| Month/Year | Credit Cards | Mortgage(s) | Other Liabilities | Total Liabilities | Dollar Change | Percentage Change |
| January 2024 | $13,335 | $162,168 | $49,319 | $224,821 | +$4,345 | -1.93% |
| February 2024 | $11,461 | $161,250 | $48,615 | $221,326 | -$3,496 | +1.58% |
| March 2024 | $5,940 | $160,126 | $47,929 | $213,995 | -$7,331 | +3.43% |
| April 2024 | $2,591 | $159,250 | $47,247 | $209,087 | -$4,907 | +2.35% |
| May 2024 | $1,383 | $158,325 | $46,581 | $206,289 | -$2,799 | +1.43% |
| June 2024 | $1,900 | $157,425 | $45,867 | $205,193 | -$1,096 | +0.53% |
| July 2024 | $765.17 | $156,500 | $45,169 | $202,435 | -$2,758 | +1.34% |
| August 2024 | $2,037 | $155,500 | $44,431 | $202,018 | -$416.58 | +0.21% |
| Sept. 2024 | $2,306 | $154,650 | $43,783 | $200,739 | -$1,279 | +1.75% |
| October 2024 | $6,689 | $153,750 | $43,070 | $203,509 | +$2,770 | -1.36% |
| Est. Nov. 2024 | $7,500 | $152,850 | $42,350 | $202,700 | -$808.82 | +0.40% |
| Dec. 2024 | $0.00 | $150,000 | $41,500 | $191,500 | -$11,200 | +5.53% |
| TOTAL | $191,500 | -$28,976 | +13.14% |
Data as of 11.01.24
About Author
