There's no better time than now.

My impending debt freedom

Three hundred and ninety-five dollars. That’s all I have left to pay towards my education loan. 아싸~!

This means that very soon, I’ll be…DEBT-FREE. I feel like this word deserves sparkles and rainbows around it or something. It’s the ‘magical’ status I’ve been working towards since I started working 7 years ago.

Technically, I won’t be completely out of debt due to the recent taking over of my parents’ remaining mortgage, but that doesn’t count as debt since I’m paying for it out of my CPF with money I’ve saved over the years and will never get to touch until retirement age anyway.

Alhamdulillah, I’m also happy to have ZERO consumer debt at this point. My credit card balances are all zero and I don’t have any other short-term consumer loans.

Now I can concentrate on saving for the long-term – something which wasn’t easy to do when I was trying to pay down my debts in the past 4 years or so. It made more sense to hack away at my debt than to save for retirement or long-term goals. Now that I’m free to save 30-40% of my net income, it feels crazy good!

I don’t mean to say it’s terrible to be in debt. Debt allowed me to achieve my life goals (like getting a higher education) while supporting my family at the same time. When managed well, debt is beneficial. Especially for someone like me with a huge ego (haha) who would never ask my parents to support me financially while I pursue tertiary education. I was never an academic star, so scholarships were out of the question. Education loans were my gateway to a university education and am I ever so glad I had that option!

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