Why is it painful to pay off a loan?

The Money Engineer

I have a friend I am helping to restructure his personal finances. One of the goals he has adopted is to clear all his loans within a year.

The other day he told me he made a bold move and deposited some large amount of money to clear the biggest loan. However he felt a lot of pain doing this. It felt like someone had robbed him of his hard earned money.

We had a hearty laugh about this whole incident and pondered why he felt so bad. In any case money you owe is not really yours.

So anyhow for him freedom from debt is a big motivating factor. It didn’t matter that the interest on this loan is quite small. He is quite determined to take action and get out of debt within a year.

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