In April 2012, I had $35,000 in student loans, and today, I am free! Free as a bird… I just want to dance up and down with joy, but I am going to be an adult about this and be cool. How did I do it, you ask? Well, a lot of things worked out in my favour.
1. I consolidated my student loan into a Home Equity Line with RBC, at a cool interest rate of 2.3% which is what my mortgage is at. It reduced my interest charges monthly from $360 to $160 which really helped me put more money into my student loan.
2. I am lucky enough to still have lived at home (even at 29!) which made it easier to reduce my monthly outgoing expenses and put more money into my credit line.
3. I haven’t bought new clothes in a whole year (a post on that coming soon), besides essentials like leggings, undergarments, and toiletries.
4. I rented out the condo that I purchased 7 years ago, in order to get more money going into repayment.
5. I taught yoga at the same studio that I do yoga at – to save on monthly yoga costs.
6. I do the basics – bring my lunch to work every day, eat out once a week, no drinks when I go out dancing, clothing swaps, reduce the amount of driving I do, my cellphone bill is at the basic level ($30 a month), I get my books from the library, I have a list before I go shopping in order to avoid random spend,
All in all, I managed to funnel $3000 a month average over the past twelve months into my repayment plan – with the resulting zero student loan debt! I wish that everyone is able to free themselves from the shackles of debt like I have, and be able to do the things they love, rather than be trapped in a job that they dislike, because of the fear of losing everything that they have built up in their lives.
Even though I have been waiting for this goal to be complete for so long, I am still apprehensive of what the future holds for me. I haven’t known a life without student loans, a life without the constant demand to pay off my loans. What will I fill up my life with now?