Paid Nearly $100k to Clear $80k in Debt

Before you start reading, please enter your email to follow Slim Fit Wallet. Following helps me to spread awareness about the benefits of living debt free to more people and give you useful content in return. If you are already part of team #slimdowndebt on WordPress, follow on Twitter.

Money can buy stuff. But a wise person uses it to buy options. Money gives you the option to choose the direction of your life.

This Thanksgiving I am grateful that I took control of my finances and became debt free. To quantify the accomplishment, I calculated the real cost (total cost) of becoming debt free. The real cost of a loan includes the original principal balance plus the interest and other fees over the lifetime of the loan.

How much did I end up paying to clear the debt?

In August 2014, when I decided to pay off my loans early instead of just making the minimum payments, the principal was about $80,000. How much did I actually pay to clear it? Including interest, I paid over $94,000 to become debt free.

How much would I have paid if I didn’t pay it off early?

Drrrrrrrrrrrrrrrrrum-roll, please ‒ ba-dum-bum-CHING. I would have paid over $110,000.  Ouch! I saved at least $16,000 by paying it off early.

Final reflection on the accomplishment

Again, I am thankful that I decided to become debt free.  Instead of paying money to “the Bank,” I have the freedom to invest in my family, my friends, and myself.  Now, I can do anything I want.  The options are unlimited.  Hope you had a wonderful Thanksgiving!

By Simone, creator of Slim Fit Wallet

Thanks for reading!