Author Topic: Starting the new year debt free... just closed out the Student Loan!  (Read 3054 times)

v8rx7guy

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I am so incredibly excited... it's actually happening!  I just submitted my very last student loan payment to the tune of $4,993.00 which should clear on the 31st.  I originally had my debt-free day marked as 2/28/2016, but an incredibly generous Christmas gift from my grandparents of $2,500 made me start thinking "what if".  After doing the math, the choice was obvious... 2016 was going to be completely debt free!

The student loan started at about $20,800 in 2010.  For some reason, I never really cared to pay it down since it was "only" a payment of $165/mo (for 15 years LMAO), until I took Dave Ramsey's Financial Peace University with my wife in 2013 and started to get serious about eliminating that final debt.  I bumped the payment up to $500/mo for about a year, then started getting crazy (for me) going up to about $1,000/mo for about 7 months or so.  That brings me up to now, and I'm feeling pretty badass dropping $5K and just being done with it finally!

As a disclaimer, this is not he full blown debt-free, as I do have a mortgage... but that day will come soon and this pay down process has definitely given me confidence to start chipping away at the mortgage at an accelerated rate too.

I am going to up my 401K contribution by another 5% now that I no long have that payment which should get our family to about a 20% savings rate.

Cheers to 2016!  :)

former player

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #1 on: December 29, 2015, 02:22:26 AM »
Congratulations. 

For the whole of 2016 you will have the magic of compounding working for you not against you - it hasn't even started yet and it's already a good year!

SwordGuy

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #2 on: December 29, 2015, 05:00:44 AM »
Congrats!!!

Put a bit extra on the mortgage and invest the money you've learned to live without.   Get a side hustle or two over the next few years and you'll see that savings rate soar to 40%.

link_417

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #3 on: December 29, 2015, 05:43:37 AM »
Congratulations!!

Helvegen

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #4 on: December 29, 2015, 01:43:25 PM »
Congrats!

v8rx7guy

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #5 on: December 29, 2015, 04:43:46 PM »
Thanks everyone!  Yes... definitely need to get my current side hustle making more than in previous years.

HairyUpperLip

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #6 on: December 30, 2015, 10:39:59 AM »
Great job!

Do you mind sharing more details about your username? I'd love to know/see more! :) You can PM me if you prefer - thanks!

tarheeldan

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #7 on: December 30, 2015, 10:47:39 AM »
Congratulations!

Fishindude

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #8 on: December 31, 2015, 08:52:26 AM »
Congrats !
That is a good feeling.

Tom Bri

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #9 on: December 31, 2015, 09:50:25 PM »
Good Job!
I never considered paying early. I guess I didn't even know it was possible. Shudder to think how much interest I paid, at 12% (Jimmy Carter era), one month at a time for 5 or 6 years.

ptgearguy

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #10 on: January 01, 2016, 06:46:30 PM »
Congrats! My goal is to pay off my loan this year. On December 31 I had 50522 :P. I hope to be debt free in 1 year time. I need about a 75% savings rate to make my goal so I will be running a tight ship. I hope to get at least one small raise this year to help make things a little bit easier :)

somepissedoffman

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #11 on: January 02, 2016, 05:14:17 PM »
cool beans!
Killing off student loans is an awesome milestone

v8rx7guy

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Re: Starting the new year debt free... just closed out the Student Loan!
« Reply #12 on: January 02, 2016, 06:53:02 PM »
I logged into the account to double check everything and on the account summary it said in red letters: "Status: Paid in full"... that was a pretty awesome moment :D