Paying off my debt was one of the hardest things I’ve ever done. But did it make me regret taking out loans? Nope! Find out why I don’t regret getting into student loan debt.
Student loan debt sucks. Any debt sucks really.
Debt can cause you to feel so much stress, anger, fear, and regret. All of these feeling are very understandable.
However, when I graduated with student loan debt, I tried to be positive about it. I tried to avoid wallowing in my financial situation…a situation that I had brought on myself.
Instead, I thought about all the amazing things I was able to experience and achieve thanks to my loans.
I don’t regret my $125,181 of student loan debt. Not a dollar of it. Here’s why:
1. It allowed me to go to the college of my dreams
I wanted to go to the University of Michigan ever since I was 10 years old. And while I fulfilled my childhood dream, it also happened to be the perfect college for me. The school was large and the opportunities endless. I’m so grateful for my time at college because those experiences shaped my life.
2. It helped me get internships
My debt helped me attend U of M which helped me get incredible internships each summer. Those internships helped me pick my college major.
3. It helped me get a really awesome job
Without college, I wouldn’t have had the opportunity to intern, and I wouldn’t have a job (yup, I got a job where I did my very first internship). Without a job, I’d have no money (and probably be pretty bored).
4. In a weird way, it helped me meet my husband
I met my husband in college. So, thanks debt.
5. My parents didn’t have to pay tons of money for me to get an education
It’s kind of nice knowing that my parents didn’t have to pay that much towards my education. I’d rather they spend their hard earned money on themselves rather than me.
6. I know SO.MUCH.MORE. about money
My immense debt taught me to be responsible with money. The process of paying off my loans taught me how to better manage my money.
I really don’t know what my relationship with money would be if I didn’t have these loans. I had to learn how to budget, plan, sacrifice, and work hard because of these loans. Honestly, those are just some life skills that my debt forced me to learn.
7. It renewed my love of money and personal finance
I wanted to work at McDonalds as a kid. My 5-year old self was so envious of the cashiers who got to touch and count money all day long (I was pretty jealous of all fries they got to eat too). I’ve loved money every since I can remember.
When I was in debt and trying to figure out how to pay it off, I read countless money blogs, listened to many financial podcasts, and had great money conversations because of these loans. My journey out of debt made me passionate about money again.
8. It helped me learn compassion for others in bad financial situations
I know I had six figures of debt, but I genuinely would consider myself extremely lucky. I grew up never wanting anything. It’s hard to be compassionate for others when you’ve never walked in their shoes. However, with this debt, I know how hard it is to be broke. I know what it’s like to have pennies in your bank account. I know what it’s like to feel utterly hopeless. I know that my experience with debt has made me a more compassionate, caring, and better person.
Related Content:
- What NOT to Say to Someone in Debt
- My Debt Story: How I paid off $125,181 of student loan debt
9. It led me to starting this blog
Starting this blog has been such a fun experiment. It’s turned into a hobby that I hope one day will turn into a money making side hustle.
10. It made me confident
If I can pay off six figures of student loan debt, I can do anything. I didn’t have mommy or daddy bail me out. I did this myself. And dam, I’m proud. I’m confident.
But would I do it all over again?
Oh yes, without a doubt.
I would pay $125k all over again for the opportunities I’ve had. My life would be so different if I hadn’t been able to take out loans to pay for a college education.
I’m grateful, not regretful.
Do you regret your debt? Did anything good come out of it?
FAQs
1. Lack of sufficient income to do so. A lot of people are making less money than they were just a few years ago. They were making more money when they incurred their debt, but now the lower income level has them in a trap where they have barely enough money to pay living expenses, let alone pay off debt.
What is the number one reason people don't get out of debt? ›
1. Lack of sufficient income to do so. A lot of people are making less money than they were just a few years ago. They were making more money when they incurred their debt, but now the lower income level has them in a trap where they have barely enough money to pay living expenses, let alone pay off debt.
Why is debt not a bad thing? ›
Debt can be considered “good” if it has the potential to increase your net worth or significantly enhance your life. A student loan may be considered good debt if it helps you on your career track. Bad debt is money borrowed to purchase rapidly depreciating assets or assets for consumption.
Why should you stay away from debt? ›
There are several benefits of not getting too deep into debt. Debt can drain your cash. Once you free yourself of debt, chances are you will have more money to spend on things you want or enjoy without having to worry about interest payments. Mishandling debt can lead to a bad credit history.
Why don't people pay their debts? ›
According to the specialists, the most significant reasons for not repaying a debt are the deliberate avoidance of either the problem (maybe the debt will somehow disappear) or contact with a debt collection agency, waiting for a debt to become time-barred and the lack of conviction that one can manage a debt.
Why do people go broke? ›
Common reasons that people file for bankruptcy include loss of income, high medical expenses, an unaffordable mortgage, spending beyond their means, or lending money to loved ones. Often, bankruptcy is a result of several of these factors combined.
Who has the worst debt? ›
United States. The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%.
How much debt is healthy? ›
Ideally, financial experts like to see a DTI of no more than 15 to 20 percent of your net income. For example, a family with a $250 car payment and $100 of monthly credit card payments, and $2,500 net income per month would have a DTI of 14 percent ($350/$2,500 = 0.14 or 14%).
What does the Bible say about debt? ›
Matthew 18:27, 30, 32, 34 - Forgive because your debts have been forgiven. Luke 7:42-43 - He who is forgiven much (debt) loves much; he who is forgiven little (debt) loves little. Romans 4:4 - Wages, like a debt owed, must be paid. Colossians 2:14 Jesus canceled the record of debt we owed by nailing it to the cross.
How debt can ruin your life? ›
Bad debt can lead to stress by limiting your ability to enjoy life. Without a system to manage your loans and pay off credit card debt your stress can increase and take years off your life. Not to mention the constant stress debt collectors can place on you to pay off your debts.
However, one of the most important benefits of this rule is that you can keep more of your income and save. The 20/10 rule follows the logic that no more than 20% of your annual net income should be spent on consumer debt and no more than 10% of your monthly net income should be used to pay debt repayments.
How many people are debt free? ›
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.
Is it OK to be debt-free? ›
Being debt-free is a financial milestone we often hear about people striving for. Without debt, you can focus on building more savings, investing those extra funds and just simply having more peace of mind about your finances.
Is everyone struggling financially? ›
After inflation, high interest rates, unattainable housing prices and other economic factors, 50 percent of U.S. adults say their overall personal financial situation is worse than it was in November 2020, according to October 2023 Bankrate polling.
Can you ever be debt-free? ›
So, when you hear about people who have absolutely no debt, live on less than they make, and have a stash of cash for emergencies, you might think they're . . . weird. But living a debt-free life isn't only for a special group of people. It's something anyone can do with hard work and some special characteristics.
How many people never get out of debt? ›
You're not alone. According to a 2019 survey by CreditCards.com, 25% of Americans with debt say they'll never be able to pay off all of the money they owe.
What is the number one way to get out of debt? ›
Make a Budget
This one is at the top of the list because it's that important. If you don't intentionally tell your money where to go, you'll have a real hard time paying off your debt. A budget is simply a plan for your money that you make before the month begins.
Why are some people always in debt? ›
Not having a budget is one of the simplest causes of debt. By not being aware of how much money you have, you could be more likely to spend more than you have access to.
What is the number one reason Americans are in debt? ›
The largest percentages of the average consumer debt balance are mortgages.
