The Challenge Begins
Our journey to financial freedom reached a significant milestone yesterday. After years of saving and facing challenges, we finally paid off our cars. It all started a few years back when our car was stolen right in front of our house. Financially, we were not in the best place, but the need for a replacement was inevitable. With plans to start a family, we opted for a safe, used SUV, pouring most of our savings into the down payment and securing a loan at a 3.5% interest rate.
Facing Adversity
Life, however, had more in store for us. Amid the stress of a tough economy and lockdowns, my wife and I went through a brief separation. With only one car between us, I had to dig into the remainder of my savings to purchase another vehicle on finance. These car payments became a monthly reminder of those difficult times, hitting our bank account at the end and middle of each month. A constant and expensive reminder of hard times.
The Burden of Debt
You know that old saying, ‘The borrower is slave to the lender?’ Well, our car loans (plus the mortgage and student loans) made that feel a bit too real. The interest, the confusion, the “what am I actually paying for?” – it was like a mystery novel, but not the fun kind. The complexity and obscurity of loan terms only added to the burden, making the actual cost of the cars over time seem elusive.
Overcoming the Past
I’ve had a painful history with car loans. In the past, missing payments led to relentless calls from bill collectors, who threatened not only to repossess the car but also to contact my employer. Determined not to relive this experience, I made sure to pay on time this time around, often paying more than the due amount month after month, often sacrificing things I wanted to buy. Thanks to a stock-based pay system at work, which paid out last week, I was able to pay off the rest of both loans.
The Feeling of Freedom
And just like that, we did it! The moment we made that last payment was exhilarating. The sense of ownership and the lifting of this financial burden is indescribable. There’s a unique kind of freedom in owning your ride outright. It’s more than just having a car; it’s about moving forward, lighter and more in control. It’s a step closer to being free from our other debts, and it brings a newfound sense of security.
Lessons Learned
Here’s the deal: If you can, avoid loans. There’s a certain peace in owning something outright, no strings attached. But if you do finance, chip away at it – every extra payment helps, and there’s a real satisfaction in beating the system, even if it’s just by a little. Imagine that 36 month loan you have now being cut down to 30. That’s six months of freedom that you could be buying back!
Focusing on the Future
With the car loans out of the way, our next target is the student loan. The idea of reducing our debts to just the mortgage is exhilarating. It will not only offer peace of mind but also allow us to explore investment options, setting a foundation for a more secure financial future.
Conclusion
Paying off our cars has been more than just a financial victory; it’s a liberation from a part of our past that was fraught with stress and uncertainty. It’s a reminder that with perseverance and strategic planning, we can overcome financial burdens and move towards a life of financial freedom and security.
Cruisin’
-Ryan
