I just posted this in a message board in Wesabe but wanted to share it here too. I’ll probably post more about this within the next week:
When I was in college my dad made an interest-free loan to me so I could get a car when my old one broke down. He didn’t want me to rush to pay it off – especially while I was still in school and not living at home. I made payments whenever I had some extra cash, and paid off about half of the loan over the course of the next 3 or 4 years. I never really considered this “real debt” since my dad is really laid back about it and not charging interest. Since I started taking control of my finances a year ago, though, I have really seen how I should have had this paid off a while ago. I’ve been making regular payments for a year, and I was scheduled to have it paid off in May of this year.
Well, I have a decent emergency fund I’ve built up over the past year. So I decided this week to take some money out and pay off this last debt just so I don’t have to deal with it anymore. Yesterday I wrote a check for $1700, the remaining balance on my car.
So, I am officially debt-free! I use NetworthIQ to track my net worth each month, and seeing all zeros in the liabilities column for February is really cool – I didn’t think it would be a big deal, since like I said it’s never been “real” debt to me. But I was wrong, it feels really good!
And, since I don’t plan to own a house for at least 5 to 10 years, and likely longer, I should be completely debt-free for quite a while now!
I wanted to share here because, well, no one I know in real life would really care or realize that it’s cool. :)