Good morning debt destroyers! I had a different post in mind today, mostly about how I feel so behind in my financial life, but then considered that I didn’t want to start off the day with feelings of inadequacy. What if I am right where I am supposed to be in this moment? So I thought I’d have a positive, celebratory post stating that I am below the 50k mark!
Current Debt: $49,331.13
Graduate loans: $40, 780.39
Undergrad loans: $8, 550.74
Paid off in 2013: $9,030
I am so excited! I thought I was falling behind, but I am exactly where I am supposed to be. Even though I’ve had a severe case of debt fatigue, and some lifestyle inflation since I got my job, it’s nice to know that I’m still not doing that bad. It’s inspiring to know that I could do even more!
For those paying off debt, I can’t stress enough how much of this process is mental. I’ve accumulated a total of 81k in student loan debt getting all smartified. The first four years of debt payment, I was just going through the motions, never paying more than the minimum. Then after I graduated with my M.A. my debt total skyrocketed and I knew I had to focus, try harder and obliterate this financial deathtrap. I didn’t see any significant progress until I mentally committed to overcoming my debt. Over the past two years, I’ve paid off nearly 20k, and as you can see 9k of that was in the past 7 months. For the first 5 months of this year, I made 12/hr. BEFORE TAXES. So if you think you have to make a lot of money to do this, think again. I admit that I have cheap rent, low cost of living and don’t have kids, so I can make this happen.
The math seems impossible, but I know that the reason I’ve been able to make it happen is mostly because of my side-hustles, living a pretty minimal life and having a cushion in savings. I’m hoping my next payment can get my graduate loans under 40k. To see that number in the 30’s would feel so good! Somehow 30k seems a lot less threatening than 40-50k.
I am not doing the debt snowball method, which would dictate that I get rid of my undergrad loans first. Those are sitting pretty at 2.5% interest, while my massive graduate loans have an interest of 7.9% (daily interest is $6.25!). So far it’s working for me.
How is everyone else doing? How do you stay motivated in a long stretch of debt repayment (years)?