How I Paid Off My $4,452 School Loan in 3 Months

September 16, 2011

Back in June, I posted my very first aggressive debt repayment plan. While the plan included making all of my regular bi-weekly payments, it was mostly focused around paying off the $4,452 my parents loaned me for school.

Today, I made my final payment to them (plus a little extra). After three months of not getting my haircut, not going shopping, and not partying at all, I have handed over $4,700 of cold hard cash to Mom and Dad. The number is shocking, even to me. Here’s a breakdown of my payments:

June 10 – $550
June 24 – $600
June 29 – $700
July 8 – $600
July 22 – $650
August 5 – $600
September 2 – $500
September 16 – $500

Handing over the cash today was surreal. Not only because this debt is finally over and done with but because of what still lies ahead. See, this debt was different than my other debts. I owed it to family, there was no interest, and essentially no due date.

The rest of my debt is what I have struggled with my entire adult life: available credit. Once I start chipping away at my credit card debt, I have to make sure I don’t spend it again. Let’s be honest – I have never done that before! But here’s how I know it’s possible. I’ve been maxed out for the last 3 months. Therefore, I haven’t had credit cards to buy anything with. And I’ve survived… right!?

So long, #7 on my On a Budget list! I think it’s time to write out a second debt repayment plan for September – December… stay tuned.

  • Well Heeled Blog September 16, 2011 at 8:40 pm

    Congratulations! That’s a huge step. Now you can take this momentum and conquer the remaining debt. Your parents must be super proud.

    • LC September 21, 2011 at 2:19 pm

      Aww, thanks. I think they wish I owed them more money… ha!

  • Sadaf September 16, 2011 at 9:09 pm

    Congratulations on this milestone!!! As a recovering credit-card-debt addict, I can tell you that it is VERY possible to live without the cards. I’ve been on a cash-only envelope system since Nov 2010. Once the cash runs out, I stop leaving the house. Just kidding… but really, take it from someone who WAS a proud plastic user, the feeling of knowing exactly how much you have to spend at the beginning of the month and then sticking to that is an awesome feeling.

    • LC September 21, 2011 at 2:20 pm

      Envelope system… I like that. I’ve also been thinking about jars. Anyway, that’s something that can wait until next year… but thanks for the congrats :)

  • singletothepenny September 17, 2011 at 6:47 am

    Good girl!
    Very proud of you!
    A plan is where it is at!

    • LC September 21, 2011 at 2:20 pm

      Thanks, girl :)

  • Andrea @MoneyMastered September 17, 2011 at 7:54 am

    Congrats! I can’t imagine a day when my student loans will be gone for good.

    Now that you aren’t throwing chunks of money at your student loans, keep some cash around so you can stop using credit. That’s the only way to get rid of the credit card debt and keep it gone.Once I got out of the cycle of making my CC payments, then using them because I didn’t have enough cash to make it until payday, it was pretty easy to get them paid off. It’s AMAZING not to have credit card debt!

    • LC September 21, 2011 at 2:22 pm

      I haven’t used my credit cards since May/June. But… that’s because they’ve been basically maxed out. I’m going to pay my first one off next week and I think the answer will just be to cut it up after, lol.

  • cashflowmantra September 17, 2011 at 3:32 pm

    Congratulations on getting that debt paid off. It sounds like you will be planning the next debt to attack. Good luck.

    • LC September 21, 2011 at 2:22 pm


  • Carrie Smith (@applecsmith) September 19, 2011 at 5:40 pm

    That is so awesome! You should be proud of yourself for accomplishing this big goal, especially in such a short amount of time.

    Now that you have been disciplined and paid off one big loan, I don’t think you have any problem accomplishing any other debt goals you want.

    Keep it up!

    • LC September 26, 2011 at 7:10 pm

      Thanks, Carrie!

  • ShoeGal September 19, 2011 at 9:39 pm

    Congratulations! This is so exciting and I am very happy for you. Also very excited to see what you do now!

    • LC September 26, 2011 at 7:10 pm

      Me too! (Excited to see what I do now… /nervous!)

  • Clare - Never Niche September 22, 2011 at 5:30 pm


    • LC September 26, 2011 at 7:10 pm