Thank you to /r/personalfinance. Thanks to this sub I managed to pay off $50,000 in debt AND finally attained a 800 credit score.
I managed to pay this off on a teacher's salary, but was very lucky to be given $3,800 from my school district as tuition reimbursement. Here's how I did it.
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I lived at home. It wasn't pretty and it wasn't glamorous. I helped my parents with a few bills here and there, but saved $600 a month as if it were rent ($7200 a year x 2.5= $18,000)
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I organized a spreadsheet with my loans from highest interest to lowest interest. I CHOSE NOT TO CONSOLIDATE MY LOANS BECAUSE YOU COULD LOSE SOME BENEFITS! (i.e. Public service loan forgiveness)
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I milked the benefits that working in the public sector provided me. I received some tuition reimbursement from Perkins (~$2000).
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I rarely went out drinking or eating and if I did I packed my own liquor and drank before. Yeah, cheap-o. Whatever.
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I bought a new car with the bare bones minimum and paid low minimum payments. Built my credit during this time. Hyundai Elantra- super fuel efficient!
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40% of my paycheck (yes 40!) went straight into my savings so I could pay the damn loans off. That was $1200 a month ($30,000 since I only got paid 10/12 months of the year). I wasn't always faithful to this though and some of the money was spent on a boob job and travel. Whoops.
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I worked side jobs bartending and tutoring. I also worked night school. If you have a master's consider becoming a professor at a local community college.
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Shopping trips were limited. I went to second hand stores often and learned how to sew.
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Packed my own lunch, couponed, and ate at the school cafeteria as often as possible.
Words cannot begin to express how grateful I am for this sub for motivating me. For the longest I felt like I was drowning and would never be successful. Here I am at 24, debt free, and saving toward my retirement. I am living MY best life now and cannot be more thankful. If you are in the situation I was, please do not feel helpless. There is a light at the end of the tunnel. I promise!
Edit: Sorry for the typos and shitty syntax. I'm on a plane about to take off. Ciao!
Edit edit: I guess it was more than 45k because of the side jobs. Also, it was 2 years and 9 months. Same difference?
Submitted June 12, 2017 at 05:54PM by icanhazusernaym http://ift.tt/2rk6SP6
