Debt Repayment
In July 2009, I was a success graduate with 2 college diplomas and 1 university degree however I was $42K in debt.
How did I get $42K into debt? Here’s the break down.
- $8,000 was a Student Line Of Credit (for university)
- $19,995.17 belonged to OSAP (university/college)
- $561.27 in OSAP Interest
- $13,766.99 is part miscellaneous (bills my parents covered that I have to pay back) and part car debt
The first piece of debt I tackled was my Student Line of Credit. Since I was on interest relief with OSAP, it made the most sense. I started payments July 2009 and it was officially paid off on April 30th 2010.
On April 15th 2010 I borrowed $19,995.17 from my parents Line of Credit and paid off my OSAP debt in one lump sum, then I started making payments to their Line of Credit. By doing this I reduced the amount of interest I would be paying per month and I had more control over the monthly payments. By October 6th, 2011 my OSAP debt which totaled $20,556.44 (OSAP + Interest) was completely paid off.
On November 1st, 2011 I plan to start to pay off my miscellaneous and car debt and I hope to have it paid off relatively soon.
by ENTER DATE it was totally paid off.
Being able to pay off my entire $40K+ of debt in under 4 years was possible because I made the decision to give up a lot of things and stick to a budget. I also had the luxury of living at home and having minimal expensive.
I did treat myself every once in a while, like my Europe Vacation; and I allowed myself to spend money when I wanted to. Since I had a plan, I knew I could afford the items.
I’m so proud of the dedication I made and being able to pay off my debt in 4 years is a real accomplish, I think, anyways.
