#065 | Pay off my personal loan debt

A momentous day today – April 24th, 2008. I paid off my personal loan today.

Doesn’t sound all that ground-breaking, I am sure, but let me put this into context. I initially created this personal loan in the year 2000 when I returned from a year or so in London. While in London, despite not paying any rent the entire time I was there and earning £15 an hour in a great job while my friends slaved away for £4 an hour, I managed to net myself about AU$15,000 worth of credit card debt. Nasty. A personal loan to consolidate this debt was the best way to avoid the scary interest rates on my credit cards, so I approached my bank and they helped me out.

I did manage to whittle this down to about $8-9,000 over a few years, but then at the time I fell pregnant, I had only just purchased a brand new Peugeot 306 Cabriolet via a lease with another bank… clearly I wasn’t planning my pregnancy. Wasn’t immediately a problem, being pregnant didn’t stop me from living it large in my hot little convertible. But once baby arrived, it became problematic. A two door car and a rear-facing child seat do not mix.

I swapped cars with my mum for about 6 months, which she thought was the best thing EVER as she scooted around her little NSW coastal town in my hot little car. I then moved to Melbourne, so mum and I swapped back our cars and I created new and unique ways of putting baby into the backseat of a little convertible with two doors. It was comedy, really.

I gave up on my dream of holding on to my precious little dream car and listed it in the Trading Post. It was a grim reality at that time that I was not going to be able to sell it for the same amount that I owed the leasing company. I was going to have to refinance my personal loan to payout the lease and sell the car unencumbered.

And so, my personal loan took another hit. I borrowed the amount I owed on the previous personal loan, plus what I owed the leasing company, plus $10,000 to buy myself a second hand car to get me from A to B… and had four doors.

So now you can probably see why it’s taken me 8 years to pay off a personal loan of $15,000. I’m not proud of it, by any means. It’s certainly not been terrible financially intelligent in the way the personal loan was structured either. Westpac have profited from me immeasurably over this past 8 years! And that’s not counting the fees I’ve paid on my transaction account for over a decade!!

So what brought me to this momentous day? Well as you know I’ve been saving my arse off to get a deposit for a home with my partner. We’ve just seen a mortgage broker and the outcome was largely depressing. Last night we talked about everything and decided that buying a home right now is just not viable. There are numerous factors that have contributed to our agreement last night to wait another year before we enter the property market, but the upshot is that we agreed that I should use my savings to pay off my remaining personal loan debt. Start from scratch with a debt-free savings plan.

So I have crossed off #065 on my list and feel like I just lost 11 kilos. And for those that know me in real life, that makes me positively anorexic. Yay!!

Let the savings plan begin (again)!!

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5 Comments

  1. That is awesome! Keep up the good work!
    http://beatingdebt.wordpress.com/

  2. who knew that april 24th was national personal loan day? i blogged about loans, too! hahaha. how random. 🙂

  3. Congratulations Jussie. What a momentous day this has been for you. Keep up the great work – Tez and I are proud of all you are and all you do. Mum xx

  4. […] | Write a budget & stick to it 063 | Save a deposit for a house 064 | Buy my first home 065 | Pay off my personal loan debt 066 | See a financial advisor 067 | Create kids education savings account 068 | Update my will […]

  5. […] 065 | Pay off my personal loan debt […]


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