I hit another milestone this month. The 4 wheels I drive around town are no longer partially owned by the bank! Yes, that’s right. Car loan is gone!
I am extremely excited about paying off this particular debt as it is the only debt I owe a bank that is not related to my education.
I have been working on eliminating my car loan from the moment I had to replace my 1998 Chevy Malibu that successful got me through high school and college but had become unreliable and problem ridden.
My First and Last Car Loan
I wasn’t a fan of taking out a big car loan but I felt it was necessary when I started working full time. I bought used, small, reliable, and very fuel efficient. Over the last two years it has proven to be just that. (Its small size has come in handy with New Orleans parking and car insurance too.)
Do I already lust after small SUVs with more cargo space and 4-wheel drive to handle the crazy bumping New Orleans roads? Absolutely!
Do I climb into other cars and realize they are like super computers where my car just gets me from “A to B?” You Bet!
But despite having those feelings, I’m not upgrading my wheels just yet. I bought my car with the intention that I would drive it into the ground with 200,000 plus miles. If I do want to upgrade before that time I will save up and pay in cash.
Snowball on to Other Debt!
It is so nice to know that I don’t have this monthly payment to budget for moving forward. I can take the same monthly payment to pay off my other debt. As I have paid off more debt over the last year I can see and feel my overall repayment speed up thanks to disappearing monthly payments.
I want to eliminate as many of my personal monthly payments as possible, because they make me feel trapped. Its a not-so-small goal of mine.For now, i’m happy to hit the road with one less.