I mailed a huge check to the US Department of Education Friday, paying off my last student loan. Which means that I am completely debt free. No loans. No credit card debt. Nothing.
I paid for 8 of the 9 semesters it took me to graduate myself with loans. My mom and grandparents helped me out a long the way, and my mom paid the interest on my loans while I was in school, but the majority of that cost was all on me.
I worked in corporate real estate right out of college and made a huge salary I hardly spent. At the time I wanted to save up as much money as I could so I could open a yarn shop, and over the 2 years I worked there I saved around $36,000. I invested a lot of it, I put the rest in a money market account, and before the recession I was making more money off that money than the cost of my loan payments.
But when interest rates went down and you couldn’t find a good short term CD to save your life, and when I realized opening a yarn store wasn’t part of my life’s goals anymore, I started paying off my loans.
$12,000 last year. And $17,000 on Friday.
So here I am, at 26, owing no one in the world any money. Not my landlord, not my mom, not the US Department of Education, not any credit card company, not AT&T. I went to college and paid for the majority of it myself. I’ve had at least one job since I was 15 years old. I work hard at what I love, and I’m really proud of myself for all I’ve accomplished so far in my life.
But it’s kind of terrifying! Like I don’t exist. It’s so unnatural for someone to not be in debt that I feel uncomfortable. I should be expecting a call from Obama asking me to buy a car or something. But shouldn’t everyone’s goal to be debt free? Shouldn’t I be pumped instead of feeling like I’m going to be in trouble? Has American excess been embedded so deeply into my brain at even without practicing it it’s part of my life?

















Holy crap!!! Congratulations! That is so amazing. I financed all of my education myself as well and worked full-time all through my undergrad. Unfortunately, my full-time working was in retail and barely paid my living expenses, meaning I still owe tens of thousands (but no credit card balances, at least). Being debt free sounds like a dream, but you’re right – it does also sound weirdly scary. What would I do without my $400 loan payments and my $250 car payment? Sounds kind of like floating without an anchor. But…you know…good.
Congrats again! You’ve inspired me to try even harder to accelerate my own payments and see what I can do to get out faster.
xoxoxo,
Kelly, formerly of Kelly Gets Off the Couch
Comment by Kelly G. — May 6, 2010 @ 9:18 am
AMAZING.
I am so happy for you.
We too are debt free. And we’ve struggled with our credit. (divorce, husbands vicious ex, court debt…etc)
was a mess.
WAS
It was when husbands credit went south that we learned to live truly within our means and it has been quite the journey. HOWEVER I can honestly say, even though there are things I want RIGHT NOW…that I wouldn’t go back to being on the “grid” for nothing. I am sure someday we will need to replace our car or my Teen will be ready for college (I have a few years) but it IS such an odd feeling. BUT FREEING.
good for you chica! GOOD FOR YOU!
.-= Cindy´s last blog ..Blogger Math =-.
Comment by Cindy — May 6, 2010 @ 9:37 am
That is GREAT!!! Doesn’t it feel awesome to be completely free of debt? Congrats!
Comment by Rachael — May 6, 2010 @ 9:41 am
It is absolutely the best feeling in the world, isn’t it?!?! Now you can start saving for a rainy day or a big emergency, because you never know! And if and when you need it, you’ll have it and not have to go back into debt unexpectedly. Congrats to you! Wise choice to live debt free!
Comment by Julie — May 6, 2010 @ 9:50 am
Oh my gosh! Congrats! Way to be Allyson…that is such an accomplishment. You have really motivated me to get better and get out of debt forever! Ugh, it’s such a stress in most peoples lives that we could all really live without!
Good for you girl!
Comment by Cindy K — May 6, 2010 @ 10:48 am
May I borrow like 7 bucks?
Comment by Jamie — May 6, 2010 @ 11:00 am
OMG! If only I was in your shoes, I would be the happy woman in the world.
Congratulations!!! Go celebrate!
Comment by Diane — May 6, 2010 @ 11:44 am
oh wow, that’s amazing!!! congratulations!! what a huge achievement. Don’t be scared, you are living the dream of probably a few billion people- being debt-free!
.-= Julie´s last blog ..Seven Random Things, and Lilacs Galore =-.
Comment by Julie — May 6, 2010 @ 1:03 pm
Seriously, though… about that 7 dollars?
Comment by Jamie — May 6, 2010 @ 4:04 pm
Congratulations! We have achieved something similar, and every time I think about it I want to do the polka. You won’t feel invisible long, because the pre-approved platinum card notices will show up in the mail soon.
Beer, pierogis, and polka for everybody!
Comment by JulieT — May 7, 2010 @ 8:21 am
Big ole congrats to you!! It is quite liberating to know you are debt free!
I can relate to that odd feeling though, as if you don’t exist. My husband and I are debt free as well (well, we did just buy a house, but that’s the only big purchase!) and sometimes I get that eerie feeling too.
But! Debt free! You should treat yourself to a fab vacation!
Comment by Jeanna — May 12, 2010 @ 8:18 am