What Would You Do?

I’d appreciate your thoughts* on a matter.

Imagine that in your given circumstances you have $12,415.82 of debt from a home equity line of credit.

And now imagine that your goal is to pay it off in one year…say by the end of 2016.

I’m curious how you’d tackle this debt. What is your mindset? Would you dip into savings? Stop contributing to retirement accounts? Are there certain purchases you’d sacrifice for the year in order to get rid of this debt? Generate extra income on the side?

There are no right or wrong answers here; no golden nuggets. Just hundreds of different ways this debt could get paid off in one year. I’d love to hear what you’d do* in this situation. Leave your thoughts in the comments section below.

*Don’t worry – I’m not taking your thoughts and opinions as financial advice 🙂


7 thoughts on “What Would You Do?

  1. Interesting question. If I were in this situation, I’d take a closer look at the different rates you’re getting.

    Is the home equity line of credit interest rate higher than the return of your retirement accounts? If so I’d pay off the line of credit before you put more money toward your retirement accounts. If your savings are just sitting in the bank earning minimum interest rate, I’d put majority of these savings to get rid of the home equity line of credit as quickly as possible.

    In parallel I’d also take a look at my expenses and what I have in the house. Cut unnecessary expenses. Do you really need cable? Can you reduce your phone and internet bills? What about dining out? Every dollar you can cut will help you reduce the debt quicker. Also selling things that you are not using will help too.


    1. Hey Tawcan. Thanks for stopping by and throwing the new guy a bone 🙂 Right now I’m focusing on cutting unnecessary expenses. Interesting thought on comparing the HELOC rate with the return of my retirement account…I never thought of looking at it that way. I just started following your blog – I’m looking forward to more of your stuff.


  2. We are also trying to be 100% debt free by the end of 2016. Our vehicles? Cutting our spending and increasing our side hustles. More and more, I really think side hustling is a great idea for those who can and want to give it a try! Good luck! I look forward to following your progress in 2016.


    1. I’ve never given side hustles serious consideration because of time restraints…but maybe if I could get creative with my side hustles. Hmmmmm…that’s something to think about. Thanks for the thoughts!

      Liked by 1 person

  3. 100% the Dave Ramsey way. I’ve paid off 16k so far in 3 months making 45k a year. Dropped down to min. Savings, stopped retirement (I’ll be fully debt free before May 2016 20k total) it really changed my life. And the way I think about money. His podcast is super informative. (He’s a little over the top, but it gets you pumped) or you can check out his book “The Total Money Makeover” I listened to it on audible while I was cooking/driving/etc. But my post that you checked out earlier highlights his methods with his 7 Baby Steps

    Good luck!



    1. Hey Lisa. I read TTMM a number of years ago and LOVED it! It completely transformed the way I handle money. I’m getting back to being “gazelle intense” to knock out my last two debts. Wow, $16k in 3 months?! That’s awesome – way to go!

      Liked by 1 person

      1. You got it! 2016 has a lot in store for those who put in the effort.

        Yes! It has been crazy I’ve always been a saver so I had a stacked savings account but it didn’t mean anything if I’ve been giving it away to Sally Mae and USAA! I drained all the way down to 1k and have a fraction of the debt left. Using tax refund, next months pay and a moving reimbursement to hopefully have it paid off well before my goal.

        Keep that intensity!

        Liked by 1 person

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