Long weekend and loan payments are over

Last week, I got great news. I had finished paying off my personal loan five months early. I felt great.

I have been making payments every two weeks for just over the last three years. I like freeing up those payments to put towards my other debt.

It's the long Victoria Day weekend here. I have been catching up on a few things while trying to relax. It has been nice so far. 

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.

Visa debit and loan update

Yesterday, I paid off my loan in full. It is the first time that I have done it within two days of opening the loan account up. It feels weird, but I'm glad that I am not paying it off in 48 months.

My bank is setting up its bank cards with Visa debit. I have requested a new bank card. I was invited to make the request. I'm not sure if everyone who has a bank card gets invited and it's just a formality, or the bank is rolling this update out to customers in waves. It's be great, as I can use my debit card as a credit card should I making online transactions.

I'm waiting for the equity from my secured loan to get deposited into my account. It takes up to five business days. This loan is officially closed. I'm pleased.

Loans and my debt

Here's an update on my financial situation. It'll be a medium post in length.

A couple of years ago, to repair my credit rating, I decided to take out a secured loan. Looking back, I shouldn't have done it. This loan company alleges that when you make regular payments to a secured loan, it helps your credit rating. Although somewhat true, repairing your credit rating takes time and dedication. It's not a quick fix like this company had implied. I didn't need to take this loan out.

Luckily, its term is only three years. I was closing in on two years of my loan. On Monday, I received a text message from the loan place saying that I could take out a cash loan thanks to my positive payments on my secured loan.

Now, I didn't want a cash loan. However, it allows the equity for the secured loan to get deposited back into my account and close that loan account. He said that I could pay off the new loan immediately. I decided to do it, as I just want out of both this secured loan and this cash loan that I never wanted.

The guy that I was dealing with was a pain as the process unravelled. I wanted the smallest loan amount possible, which is $2500. His confirmation text said $7500. Huh?

I also didn't want insurance protection, as I was going to pay the loan off immediately. At least he got that detail correct.

I have to call a special department to have my loan completely paid off. Fun! I wanted a specific day to have automatic payments come out of my chequing account to coincide with my payday. Nope, that didn't happen. It's the same special department that I need to get that changed. Even though I am not making regular payments, I'd rather be safe than have money taken out of my account that I have not budgeted for.

He asked for my bank statement overs the last three months. Since we were texting, I sent them that way. He then asked for them sent to his e-mail account. Why not say that to begin with? I actually had to download the statements from my laptop and transfer them over to my phone. I could have avoided the extra work.

During this process, I felt like this guy wasn't clear and upfront. He wanted a pre-authorized form filled out with my banking information. I put the company name in. When he got it, he wanted it blank. Well, why not tell me that upfront? I'm sending you a document with my banking information through the Internet. How safe is that it have any person take that information and authorize taking money out of it when the company name is blank?

Yeah, I had it. I told him off that I didn't appreciate these missing details, including the loan term. He frankly wasn't understanding my point of view. I told him so and said that we need to move on. I was tired of texting him who had the listening skills of a brick wall. I'm sure that I hit 100 text messages just to this guy by the end of this loan setup.

In the end, the loan money has been deposited to my bank account. My secured loan has been closed. I am waiting for the equity to get deposited. I'll call this special department to pay off this loan and close this account later on today.

What I am not thrilled with is the fact that having this loan company do a credit check on me will temporarily make my credit rating go down. It's sad that I simply couldn't pay off the secured loan without opening another loan. Then again, the secured loan was at a higher rate of interest and it's really not worth going through the loan for another thirteen months.

Other than this weird loan situation, I am thrilled that I can make more payments towards paying off my debt and improving my financial situation.

Sick day, Raptors parade, crying, and loan

I decided to take a sick day on Monday. I am still getting rid of a cold and a mild cough. I also needed time for myself. Call it a healing day.

I went out to a movie and saw John Wick: Chapter 3 - Parabellum. I have seen every John Wick movie. This one was okay. It wasn't my favourite. If you like tons of sword-slaying and gun-shooting action, this movie is for you.

Monday was also the Toronto Raptors parade. I decided not to partake, as I would be miserable all congested with a bunch of people for hours. I watched the entire parade and other coverage on TV. I cried. It was tears of joy and pride. I also felt good that I could let out a good cry. I haven't been able to since my guy broke up with me.

One final milestone on Monday was that I paid off my loan that I have had for years. My loan account no longer exists when I log in to my bank app. I am proud of myself for paying it off. I have more flexibility to allocate what I used to pay towards my loan to paying off other debt. I also want to save again and bulk up my emergency fund.

Two more loan payments to go and I'm done!

I am two payments away from completely paying off a major loan. I am so pleased that I can see the finish line.

I have envisioned reaching this stage for a while, knowing that it's a huge milestone for me. It feels good. I will be able to allocate some money towards savings while continuing to get my credit cards paid off.

Things are looking great. Sticking to a budget has been tough, but it does work with a ton of hard work and support.

Tax return and financial health

On Sunday, I filed my tax return. It's nice to get it out of the way. I am roughly 1.5 months early filing it.

I am pleased with how things are going with paying off my debt and getting back on track. This year has some exciting changes:

• Number of credit cards paid off: 2
• Number of loans paid off: 1

I will also be focusing more on saving money. It's sad that I have had to abandon this practice for a while to pay off debt. It's important to have a decent reserve for emergencies. These days, it's my retirement savings and I don't want to dip into it.

I'll need to build up my retirement savings, which I am looking forward to. I'm optimistic and excited! It's nice to feel good about how far I have come.

Bonus pay coming soon to my chequing account

On Monday, it was confirmed that my bonus pay will be deposited at the end of the month. I am excited!

I have a loan that will be completely paid off at either the end of May or early June. I am putting this bonus pay towards paying off a credit card. I will be in decent financial shape come the summer.

It's nice to look ahead and see how bright my financial situation will be. Yay!

Optimistic outlook on my finances

It's a long weekend for folks here. Let me tell you that it's much needed.

I am optimistic about my finances this year. A loan that I have had for nearly five years ago will be paid off at either the end of May or early June. This loan was to consolidate a large amount of debt. It frees up money to put towards other debt, which won't be a whole lot when I get there.

The toughest part is getting through the next three months. Last year, my debt situation required that I dip into my retirement savings. For years, I did not touch it. I had no choice last year. You get dinged for taking this money out before you retire, which will be reflected in my income tax return. My thinking is that I had to deal with being behind with my debt payments that it was worth the risk taking money out of my retirement savings.

With the loan payments being over in early summer, I will be able to put money back into my retirement savings and build it up. This plan makes me happy.

I have come a long way. It will be nice to get back to having my finances back in check.