How I Paid Off My $4,452 School Loan in 3 Months
Back in June, I posted my very first aggressive debt repayment plan. While the plan included making all of my regular bi-weekly payments, it was mostly focused around paying off the $4,452 my parents loaned me for school.
Today, I made my final payment to them (plus a little extra). After three months of not getting my haircut, not going shopping, and not partying at all, I have handed over $4,700 of cold hard cash to Mom and Dad. The number is shocking, even to me. Here’s a breakdown of my payments:
June 10 – $550
June 24 – $600
June 29 – $700
July 8 – $600
July 22 – $650
August 5 – $600
September 2 – $500
September 16 – $500
Handing over the cash today was surreal. Not only because this debt is finally over and done with but because of what still lies ahead. See, this debt was different than my other debts. I owed it to family, there was no interest, and essentially no due date.
The rest of my debt is what I have struggled with my entire adult life: available credit. Once I start chipping away at my credit card debt, I have to make sure I don’t spend it again. Let’s be honest – I have never done that before! But here’s how I know it’s possible. I’ve been maxed out for the last 3 months. Therefore, I haven’t had credit cards to buy anything with. And I’ve survived… right!?
So long, #7 on my On a Budget list! I think it’s time to write out a second debt repayment plan for September – December… stay tuned.