A3 - The Day We Faced Our Debt Reality

Joe Debt
Oct 15
2 min read

Updated: Oct 21

The day we stopped guessing - and faced our debt reality

We thought we were managing fine… until we added up every credit card, every loan, and every overdraft. The truth hit us hard - and changed how we saw our financial situation.

The Wake-Up Call

When we built the Debt Reality-Checker, it wasn’t meant to impress anyone.

It was meant to shock us into action.

We wanted to know:

How much we really owed
How much interest we were actually paying
How much of every payment was going toward the interest instead of the principal debt

The results were uncomfortable - but that’s exactly the point. We discovered that more than 59.80% of our payments were disappearing into interest. That meant almost three in every five rand wasn’t helping us escape debt - it was feeding it.

That’s the day we stopped guessing and started planning.

What the Debt Reality-Checker Shows

Your total debt across all accounts
Your weighted average interest rate
The split between interest vs. principal payments
The percentage of every payment wasted on interest

You need to see it to believe it! This sounds corny - I know, but it only hits you once it's "in your face".

I can honestly say that this defined the moment that we were truly motivated to crush our debt once and for all.

What's Next

The Debt Reality-Checker is the first tool in our Debt2Wealth Journey Series.

What we plan on developing next:

The Debt Scorecard - a motivational dashboard showing how your balances shrink and your progress grows.
The Snowball vs. the Avalanche method - a tool that will show us how long it will take us to crush our debt using either method.