I just did it and surprisingly, it didn't feel good. I just sent off a very large check to pay off my student loans. I spent my security money and now that I own my education, I feel like I am even more at risk. I hated having that loan over my head. I have been hoarding the money I got from my divorce settlement and did it. Now it is nearly all gone, but so is the majority of my debt.
My theory -- whether faulty or not -- is that the money I have been spending each month on student loans could be paid into my savings to build my security back up...and I will be earning interest not paying it. Now, all I have left is my car loan, and that is a significantly smaller loan. Then I am completely debt free.
I had expected to have a feeling a joy, freedom or at least relief. I got none of those. All I had was worry that I was making a mistake by spending the money I used for security. This is was one of those times that I felt truly single and wished that I had someone that would say "Don't worry, we are in this together." But, the burden is on me. I hope the kids don't ask for a pony...the stables are empty.
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Elliott, of course you did the right thing! Congratulations! Security is important, but so is a little risk.
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