The day I thought would never come. Goodbye studentloan!

I feel like a kid on Christmas… actually I have no idea how that feels because I never believed in Santa. Anyway, I’ll keep it short and sweet. Informative and serious articling will resume next week. (maybe)

St Nicholas and Black Pete

I paid my $5,000 creditcard off in August 2010 once and for all but struggled with getting out of the credit habit for a few months. In November of 2010 I picked up Dave Ramsey’s TMM book, devoured it and somehow found renewed inspiration to just keep going. (While I’m still a big fan, I’ve since somewhat abandoned Dave’s 7 baby-step plan and I’m figuring out my own way up and out)

It’s been quite the journey

On September 3, 2009 I owed $15,939.28 and on December 21st, 2011, 15 months later I STILL owed about $15,500… and then it started dropping…

$13,108.94 on February 3, 2011
$9,417.90 on April 3rd, 2011
$7,825.95 on June 3d, 2011…

As of this morning, January 4th 2012 I owed $540.15. I tweeted that I was going to do this tomorrow, but screw it. I went back out into town tonight to move the cash from one bank to another, I wiped my checking out completely to use the money to pay off my studentloan by transferring it online after depositing it at another bank… So I’m broke.

But it’s ok because I can now post this…..


A few extra for emphasys:


In about 12 months and 2 weeks time I paid off my $15,500 student loan, an average repayment of $1,262.96 per month. (interest not included!) That’s almost 10 awesome vacations worth of cash right there.

If you include my regular mortgage, mortgage prepayments and studentloan payments my total debt-repayment for 2011 comprised 62.5% of my NET income. Ouch. Granted I did that myself, I didn’t have to… I could have spread it over the next 10 years but I want freedom, financial freedom.

It’s over now. Because I’M DONE.  My mandatory debtpayments on my housedebt now make up about 16% of my net income, anything beyond that is up to me.

I’m debt-free baby, debt-free except my house.

It’s only up from here! I’ll shut up now because I promised to keep it short, but I really didn’t. I also feel the need to insert bad youtube vids of bad songs because I’m giddy inside.

Sorry, I had to! (Hey at least it doesn’t auto-play) Please feel free to add additional BADness in the comments and join in the celebration. 🙂



PS: IMG source here and here. For more on the story of St Nicholas and Black Pete read this.

  1. Congratulations! This is such an exciting accomplishment. And what a great way to start off 2012.

  2. Wow! The 62.5% is a BIG number, but hey, you did what you had to do and now you have one BIG worry off your list! That's awesome and I'm jealous! I can't wait to see more progress on the Littlest House too!

    • Auth said:

      You are an excellent iertwr even if I have thought your writing seems sad sometimes! I am so glad you are honest! The truth will set you free, is true! I love you and I am so blessed to be your Mom!

  3. Wow this is great news. Do you know what one does at 3:24 in the am? Get inspired. Thanks.

    • Renée said:

      Hahaha oh that sounds all too familiar, glad I could help 🙂

  4. Alex said:

    I'm Jennie Baird's dad, and she sent me your news. Don't know you, but appreciate the feeling! It is indeed a happy day, and I'm very happy with you.

  5. Monica said:

    What a great accomplishment – Congratulations! Kudos for being so determined and disciplined when paying off such a large debt, and I'm sure this post will inspire others to action. My teenagers had me watch the same video you posted, and I admit that it made me laugh:)

  6. Hunter said:

    Well done. I can feel the huge sense of relief and accomplishment in every sentence.

  7. lbcteacher said:

    WOW!! That's so awesome, good for you!

  8. Yay! Go you!! I know how good that feels. I paid off my undergrad loan in 5 years (including one year I was unemployed and the loan was in forbearance)… and even though I turned right around and applied for grad school two weeks after making the last payment, I have a plan to pay off all my grad school loans before they start accruing interest 6 months after graduation. I just kept putting the same amount that I'd been paying toward my undergrad loan each month into a savings account for grad school. I'm sure I'll do my own share of Homer-ing when I finally pay that off!

  9. Dez said:

    Congratulations! You should be dancing!

  10. Niki said:

    Yay, this is so exciting! You worked really hard and congratulations to you. You deserve to be dancing. You're sexy and you know it.

  11. Top effort! What are you planning to do with all that money you were putting into your loan? Hope you treat yourself to something appropriate to celebrate.

    • Renée said:

      Well, I set up a bunch of goals for the new year that involve prepaying my mortgage, I intend to almost triple my monthly payments there… I've also got a bit of travel planned and it's very exciting that I can now freely do that without feeling 'guilty' because I could have put it on debt… I'm planning for Italy, Netherlands and FINCON12 at the least. 😀 I've also got some savings and investment goals for this year… either way I'll find a way to get the very most out of the money I don'thave to spend on that darn student loan anymore.

  12. Jana said:

    Congratulations! What a way to start the year!!!

    • Renée said:

      I know huh 😀 best new years gift to myself – ever!

  13. Awesome job Renée! It's been great watching your journey and I'm very excited for you! Wahooo!

    • Renée said:

      thank you! Are you still writing? Haven't seen you around in a while, how is yoru financial progress?

      • Giisel said:

        Posted on Do you people have a foceboak fan page? I looked for one on twitter but could not discover one, I would really like to become a fan!

  14. Great work Renée! We paid mine off last summer and it is such a nice feeling to get rid of that debt!

    • Renée said:

      Yes it is, a belated congrats to you as well!

    • Renée said:

      Aw thank you so much! Happy I could do that for you 🙂

  15. spendersbroke said:

    Congrats! That's amazing that 62% of your income went to your debt. It really makes me want to kick my own butt into gear.

  16. Miss T said:

    Wohoo is right. Congratulations. I am sure this is a great feeling. I know I felt amazing when I paid off my debt a few years ago.

      • Cindy said:

        I’m so glad I’m not the only one who puts up frames ebofre I have pictures printed for them! I had picture-less frames up in Gigi’s room for at least 6 months ebofre I finally did anything with them! That was my big project last week editing and printing pictures for all the the frames in our house

  17. Lena said:

    Awesome news!! Congratulations!!! What a great way to start the New Year. Probably, almost feels like a new life 🙂 Great job!!

    • Renée said:

      Yeah it does, it feels a little weird too 😀 thanks, happy new year to you!

  18. The Happy Homeowner said:

    Congratulations!!! Amazing work!

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  20. YFS said:

    Great job.. you really poured it on with the payments. What are you going to do with the money now?

    • Renée said:

      save save save for the coming few months, I've also started looking at some ways to invest… mainly though the next month or two are going to consist of hoarding cash… probably. LOL. It's been so long I don't know what it feels like to just have money sitting in my bank account… going to savour the moment!

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  22. I still owe around $8K on my student loan. I seriously cannot wait until that bad boy is finally paid off.

    62%…awesome job!

    • Renée said:

      you'll get there in no time!

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  24. Edelmira said:

    yes! you did an awesome job! the blog looks great. and a belated congratulations

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