Posted by Lending Club :: June 5, 2009 @ 12:33 pm

Adam Baker has been taking the personal finance community by storm. His blog, aptly named Man vs. Debt, has seen an unprecedented growth in popularity in its first two months of existence. His aggressive approach towards eliminating debt, coupled with his outgoing personality, make reading his blog both educational and entertaining.

The birth of his first child led him, along with his wife, to a series of decisions that included: selling their small business, leaving a stable career, declaring war on their debts (read his Declaration of War), selling all of their possessions, and heading off to Australia within 1 year. The plan has all come together and the move to Australia is set to take place this weekend. I had a chance to ask a few questions to better understand the man behind ManVsDebt. Here’s what he had to say just before heading out of the country:

Mike Smith: It seems as though the things that bring us the greatest success make us weak in the knees when we first consider them. Do you feel a healthy fear regarding your impending move?

Adam Baker: Actually, not really. I don't think it has actually set in yet. Plus we have been able to save up a $15k+ emergency fund (a lot for our lifestyle), so this really takes the edge off. Most importantly, we've done as best as we can to set our expectations and to have an open mindset. We are really viewing this as a stress-reliever more than anything! I'm thinking my tune will change after the long flight with the baby.

MS: Has selling your possessions been a sacrifice that feels limiting or a relief that feels liberating?

AB: On a small scale, it's been a sacrifice. There have been a couple things we've really struggled with parting with. However, once we got rolling the sacrifice "feeling" quickly got replaced with an overwhelming sense of liberation. Now it feels AWESOME! It's actually an addicting process. I continually want to eliminate more and more.

MS: Has downgrading your lifestyle been easy or hard? That is, are you making sacrifices that hurt or do the positive benefits make it seem worthwhile?

AB: Once again, the hardest part was really shifting our mindset early on. Luckily, the birth of our daughter gave us a ton of motivation to kick into high-gear. Unfortunately, it often times takes an event like this for us to overcome our "but we deserve it" attitude. Like eliminating our possessions, once we got rolling with a more limiting lifestyle it became easier and easier. It's almost like a game to us, seeing how minimal our lifestyle can be.

MS: Am I correct to assume that you have very few monthly bills, other than debt repayment? How can you live without the things most people consider 'necessary'?

AB: That would be a fairly accurate statement. Right now, I think people are really taking stock of what is necessary. For example, television. With so many online options it seems almost silly for computer-literate people to still pay these high cable bills, especially when they are eliminating debt. I don't want to beat a dead horse, but it comes down to your mindset. It only took me one week to get used to not having a TV. It went from "necessary" to "frivolous" in almost exactly 7 days.

MS: My year abroad brought me much more in life experiences than it did in financial success. Do you expect the same, or are you looking for a balance of the two (or a focus on financial success)?

AB: Well, we are certainly looking for a balance of some sort. Although, I will say we are much more concentrated on the life experience part of the equation. I'd like to eliminate the remainder of our student loan debt within a two-year time frame, which will still include us living on under 50% of our expected income. Frugal traveling is the name of the game for us right now! It's not an oxymoron!

MS: How will you manage your domestic obligations from abroad? Do you believe in automating your finances?

AB: We are almost exclusively online now. We've known the trip was coming up for nearly a year, so we've been minimizing our domestic obligations. Our mail will be going to a family member, which helps. We bank with ING Direct and do electronic payments for our student loan debt. Since we have no other U.S. bills, this system will be easy.

I believe in automation, but only to a point. I think often times people become too automated and thus lose touch with their finances. You should only be automated if you are completely in control and can maintain some intimacy.

In the conclusion of our interview, Adam will discuss the lessons he’s learned from his financial mistakes, his unconventional debt elimination strategy, and what the future holds.