Over the past two years, my husband and I have managed to clear over $14,000 in debt. We still have about $20,000 in student loan debt, yet we have recently chosen to move from a small studio loft to a spacious two-bedroom townhouse. So, it leads me to the question: Is it okay to splurge while we still carry debt? The extra funds will be used to cover the higher rent in our new larger home.
I strongly believe that, like many aspects of life, maintaining balance is essential. We might have cleared our credit card and car loan debts, but our student loans are yet to be paid off. This could take us an extra two to three years. We are both in our late 20s and have been living in a tiny 500 sq. ft. guesthouse. Are we expected to continue in such a confined space for a few more years, as we work towards clearing our loans?
It seems reasonable for us to grow and make mature decisions. Our expenses are not on trivial luxuries, such as clothes or electronics. Although moving to a larger place will certainly be costlier, the drastic improvement in our living conditions seems worth it.
In life, the key lies in striking a good balance, whether it’s managing finances or dieting. Overindulgence can thwart any attempts to lose weight or save money. However, occasional treats, if managed well within your allocations, can prevent you from wrecking your diet or savings plan altogether.
Some people consider debts like credit cards and car loans as ‘bad’ and student loans and mortgages as ‘good’. Others think all debts should be eliminated simultaneously. Needless to say, every individual is unique and as long as there is a strategic plan to repay the debts, progress is being made in the right direction.
As far as our student loans go, we are making steady strides. Paying off the debt might take more time than some, but we have made significant headway and are moving closer to becoming debt-free.
So, can we spend whilst still in debt?
It might not be the best scenario, but if such actions help in keeping us motivated and disciplined towards loan repayment, it might not be all that bad.
