In January of this year I decided to really focus in on the elimination of debt. Since all debt is not equal I created tiers for my debt:
- Tier 1 – Consumer debt – the shittiest of all debts. Some of this is rolled in debt at a low interest rate, but it is for purchased items.
- Tier 2 – Includes 3 long term debt items that aren’t dire but should be taken care of eventually. They include the debt on my solar panels, debt associated with my boat and debt on my permanent life insurance policies.
- Tier 3 – Not on my radar just yet but these are mortgage obligations.
I wanted about a week after the 15th to do this update because I received my bonus and ripped through a lot of the tier one debt! I was and am really excited as it alleviates a ton of pressure off of me.
As it relates to January 1, 2025 my debt is now down 19%. Not bad for a little over 3 months.
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