Thursday, October 01, 2020

Loans update

Yes, loans is plural. 

For the last two years, I have been paying off a secured loan. The idea is to pay money towards this loan and build equity. The regular payments, in turn, contribute to building your credit history and score.

I realized that I truly didn't need this loan. I was doing fine steadily paying my my debt of regularly. I wanted to simply pay off this loan. It was a huge lesson learned.

Well, I had the opportunity to get out of this loan by taking out a regular loan. I don't get why I needed the second loan, but I did it.

I have officially closed the first loan. I got my equity back, which I immediately put in my RRSP  (Registered Retirement Savings Plan) account. 

I paid off the new loan immediately. Yesterday, I called the loan folks and got confirmation that it is both paid off in full and closed.

As for paying off my debt, it's still going well. I look forward to seeing the amount that I owe go down. It's satisfying to see my progress. It's like night and day between my financial situation a year ago versus what it currently is.

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