girlnextdoor

financial discussions with the girl next door

Debt-Free February 1, 2009

Filed under: Uncategorized — girlnextdoorfinance @ 1:15 pm

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. :)

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3 Responses to “Debt-Free”

  1. Hollie Says:

    You didn’t tell me this!!! I’m a real life friend and I would’ve thought this was great to hear! How long do you think it will take you to replace that amount?

  2. girlnextdoorfinance Says:

    Sorry Hollie :)
    With the other stuff we talked about, this became about the least of my concerns.

    But to answer your question, I’ve been putting $350 into my savings from each paycheck (twice/month). However, now that I won’t be putting money from my check toward a car payment, I’ll probably increase my savings to about $500 per check. So within 2 months I should have my savings back where it was. Unless Valentine’s Day and upcoming birthdays decide to wreck havoc on my savings plan, that is.

  3. Beth Says:

    Congratulations! That’s awesome…I always love it when folks become debt free.


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