This isn't as great as an achievement as some, but I did manage to pay off all my debt at age 28 and I wanted to share what helped me the most.
A bit of background, my only debt was $20,000 in student loans and $21,500 on a car.
My car had a 0.9% interest rate and was for the course of 60 months. I paid it off in 58 months - so not a great accomplishment, but nonetheless it's 100% mine now.
The greater accomplishment I felt was the student loans. There were 4 loans with interest anywhere from roughly 4-6% interest. These were over the course of 10 years, and my monthly payment was reasonable at only $160 for 10 years. I'll admit, in the beginning once I got my job, I didn't care as much about paying off debt as I did about having fun, freedom, and money. I paid off a decent amount (maybe about 10k) until I started getting serious. I started making more money through regular raises so I pushed myself to tackle these loans and I went by the Snowball Method. My largest loans were about 3k, so I tackled the smaller loans (About 2k) first because they had a higher interest rate and they were the smaller figures. Once I had paid off the higher interest loans, the final two were the same interest rate, but one was a little bit smaller than the other - and so I tackled the smaller amount first.
Long story short, I just made my final payment 4 years earlier than planned. I hope this helps and encourages anybody! Thank you for all the great advice R/PF
Submitted August 29, 2018 at 10:42AM by jaspermum https://ift.tt/2BUAb0o
