Why we chose to pay off our debt FAST
You did what?
When I tell people that we are debt-free, they almost always react in the same way. They give these unsure congratulations. When I explain that we paid off $115,000, they usually add a “wow” into the conversation. Finally, if we are having a real conversation where I have time to go through it, I tell them we did it all in 31 months. That is when they ask me “how?”.
How did you do it?
I am planning on answering that in-depth, but that is not the most important factor in getting financially fit. The “why” is way more crucial than the “how”.
Where did the debt come from?
$103,000 of student loan debt with $12,000 of car debt.
The wake-up call
In the fall of 2015, I was in my final semester of college. I went to school for Environmental Studies/ Urban Planning. While other people were studying for natural resources class, I was doing math trying to find some monetary resources. Sounds pretty relaxing, huh? There were times I ditched class to go to job fairs and interviews. I graduated in January of 2016 and I landed a full-time job in May of 2016. That is when the plan on paper became the blueprint for real life.
Why were you in such a hurry?
The short answer is: freedom
If you know anything about college, degrees, and the workforce then you know that some degrees are more profitable than others. While I felt my degree was worthwhile, I was terrified that it would never be as profitable as I needed it to be. Getting out of debt would ensure that the money I made, which at the time felt limited, could be used for me.
Another reason why I decided to lead us on the debt crusade was a Parent Plus Loan. I wish I could tell you that my motivation was completely positive but that would be a lie. I wanted to get out of debt because I made a deal with someone who would surely hassle me more than the federal government- my mother. During my first year at a big university, my mom took out a Parent Plus Loan for me.
A Parent Plus is a loan in the parent’s name that allows their child to use the funds for the school. She assumed the liability and I got the tuition. This would not have been so bad under normal circumstances but my relationship with my mother is not normal. I knew that the loan she took out for me would be held over my head for eternity, but the sooner I paid my share, the sooner I could release myself for that situation.
Lastly, I am risk-averse...sort of. I have not been known to shy away from many risks in my lifetime. I am kind of a “leap before she looks” kind of gal. For some reason, the idea of 115k in student loan debt didn’t feel like a risk worth taking.
The Takeaway
I wanted to work in a career I liked rather than be forced into a job for financial reasons. I needed to free myself from the toxic relationship I had with my mother surrounding money. Finally, I wanted to reduce the risk for me and my family.
