29 October 2010

No Longer Indebted

I am happy to report that, as of today, October 29, 2010, I am debt free.

Supertramp Loan Servicing:

First
Disbursement Date
Loan
Program
Current
Balance
2003-07-02 SUBSIDIZED CONSOLIDATION LOAN $0.00
2003-05-13 UNSUB CONSOLIDATION LOAN $0.00

Total Current Balance: $0.00

The payment scheme I adopted for my student loans has varied over the past few years. When I worked in Chicago, I paid more than the minimum payment. But I put a lot more of my money into investment accounts, since the interest rates back then meant that I was earning more money than I was paying on my loans.

After coming to Japan, that changed. Interest rates crashed, investments were losing money, and in a practical sense, investing from abroad became harder to do. So I shifted my priority to paying off my debt. I slowly ramped up the payment amounts, looking for ways to squeeze my budget to make it happen.

When I passed below the $10,000 debt mark, I made a concerted effort to pay the loan off as quickly as possible. I was helped by the rise of Japan's yen against the dollar, meaning that a transfer for 100,000 yen, typically understood to be about $1,000, would turn into something closer to $1,200 or $1,250. These little "bonuses" helped the loan drop more quickly than expected.

And so last week, I submitted my loan payoff payment of $1,233.55 and eliminated my debt.

There were no fireworks. No special feeling, really. Just the realization that from now on all the money I was paying to a lender I can now pay to myself. And the savings are going to be fantastic.

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