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, mostly consumer, 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.
This month there was no large in flow of cash, so my guess is that I kind of just chugged along. As it relates to January 1, 2025 my debt is now down 17%. That number is about the same as last month whihc is a bit frustrating. Tier 1 is some how exactly even with a little payback on Tier 2.
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