I used $ 23,000 from renter insurance to pay off my student loan


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In May 2018, I received my BA from the University of Albany (SUNY) and was ready to find a job. My first thought after the peak of my bachelor’s degree was: “How will I pay off my student loans? “, which I am sure is true of many recent graduates.

When I started working, I made $ 35,000 and lived at home with my grandparents. I lived my life as if none of the money I made or saved was mine, investing every extra penny on my student loan debt

I know some people say there is such a thing as good debt, including student loans, but I have no financial safety net. My family is loving, but has been in financial difficulties for many years. I didn’t want to risk having this debt over my head forever.

The accident that changed my life

At that time, my boyfriend, who had worked for three years, moved to Manhattan and, along with a few friends, rented a small apartment with three bedrooms and two bathrooms. I was going to come every two weekends and enjoy the city on a tight budget, while being very careful about the money I was spending.

On Sunday September 2019, my boyfriend and I returned to his apartment to clean up. For several weeks my boyfriend’s shower door was a little tight and you had to push hard to get it open and closed. I held the shower door with both hands as I closed it when the bottom wheel popped out and the shower door shattered.

I cut both hands wide open.

After stitches and X-rays, a visit to a neurologist, an appointment with an occupational therapist, and several follow-up visits, I left with nerve damage to my right thumb and persistent scars.

Lucky for me, my boyfriend tenant insurance across Lemonade… As soon as we got back from the hospital, I pushed my boyfriend to file a lawsuit – without that, my medical bills would be huge. In the end, after months of doctor visits and negotiations, I paid Lemonade $ 23,250 in addition to what they paid for my medical expenses.

Twenty-three thousand two hundred and fifty dollars. Just a couple hundred dollars less than what I owe on the remainder of my student loan. This money changed my life.

Since then I have been building up my capital

I immediately used my checking money to pay off my student loans in full. After that, I started putting all my spare money into savings and investments to increase my net worth.

Since then, I’ve managed to save about $ 50,000. I opened 401 (k) and Roth IRAand now I can save money for the future – which I haven’t seen for the next 10 years or more. My goal is to increase my Roth IRA to the maximum each year so that I really have a chance to retire.

Since I have no debt, the idea of ​​buying a house in the future is no longer just a dream. I can save on my dream honeymoon. I don’t need to worry about credit card debt. My credit rating is now 793 and is only growing.

In the end, thanks to this settlement, I was able to get out of debt at 25 years old. But for this I had to get a nerve injury. If I could go back in time and avoid this traumatic event, I wouldn’t. I would go back and let it happen over and over. All the pain and suffering, as well as irreversible scarring and nerve damage, deserve to be out of debt on a student loan.

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