At the beginning of this year, I set a goal for myself to pay off around a third of my outstanding student loans in 2013. At that time, I had around 15K euros of outstanding student debt remaining. However, with the interest on my student loans (around 2,4%) being higher than the interest on my savings accounts (currently just over 1%), I thought it would be a good idea to start paying off more aggressively, as I am effectively losing money by not doing so. Also, since our first child is to arrive any day now, and motivated by personal finance websites such as Mr. Money Mustache, I have been able not to pay off a third, but to get rid of my student loans altogether. I made the final payment last week, and even though I haven’t received the official conformation letter yet, it feels great knowing I no longer have to fork out 155 euros for the monthly payment. We’ll probably have to spend it on diapers and daycare instead, but still..
Also, since we are looking to relocate in a couple of years, it also feels great knowing that student loans will no longer have any negative effect on the mortgage we are eligible for. This doesn’t mean we’ll start looking at palace-sized residencies right away, but it sure doesn’t hurt either!
And so, finally, another item on my list finished, and even though it does not involve traveling, sports or any other pleasing activity, I’m no less proud and satisfied ticking it off.