I paid off 31k student loan in 3 years (sorta)

Yikes! After procrastinating since months about jotting down my little debt paying journey, I realised my statement is no longer available. It’s been a little over 2 years since I’ve cleared my PTPTN loan in November 2016, best decision EVER!!!. So, this is how I did it and so can you!

Prelude, aka the awakening moment I had was when I realised I was paying RM77.50 a month for interest, for nothing. This might not sound a lot to most of you but to put it in perspective, that’s an additional of RM930 a year that I have to pay if I do not repay my loan and it will snowball.

With around 31k loan that’s been snowballing since I got my scroll, my initial plan was to settle it within 5 years time (2013 – 2018). At that time I was comfortable with paying RM400 a month, coupled with the 10% discount offered with the 2013 budget, it was a doable plan. But how did I cut short it to 3 years?

First Step: Change your mentality.

Literally me. Just working for money I do not own.

After paying RM400 without fail for a year an a half, I got my break when a bigger company wants me. (Let me cry some rainbow tears, it’s been a dream of mine to join this fancy big company but a few years back I never got the call back when I was a freshie with no experience, just undying passion in Media Planning, and no, I’m not doing media planning now. I’m still with them. Loving my job but now my undying passion is on personal finance.).

Second Step: Set a goal and stick to it.
So at one point in 2015 I made a goal. To pay 10k off my PTPTN loan in a year. It might look like Everest to some but if you break it down, that’s RM834 a month. And I don’t do all that by depriving myself of little luxuries in life, I still eat and shop. But the first thing that I do after getting my pay check is to pay my PTPTN loan. Without fail.

Always break it down to smaller doable part. If 10k is a big chunk of your annual salary, try 5k (417 a month) or 2.4k (200 a month). And stick to it. Set auto deduct if you don’t have the discipline to part with your money. The key to success is to START.

Third Step: (Optional) EPF Account 2
By June 2016, I was so eager to settle my loan to get the 20% discount by the end of the year, I took out 5k from my Account 2 to settle part of my PTPTN and consistently paying 1k off until one faithful day in November that I finally settled my PTPTN loan. Now the money that I make belongs to me!!!

But if that doesn’t motivates you enough to settle this loan that many put in the back burner because it’s just a 3% loan, what’s the rush? Here’s a summary of the amount of money I paid for the 31k loan I took.

Initial amount: RM31,000.00
Total repayment: RM36,830.65 (+18.8%)
That’s RM5,830.65 you can invest, gone just like that.

So please START your plan now.


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