Over at Girl with the Red Balloon, she announced that she just recently paid off the rest of her loans, and she’s now completely debt free! Go over there and congratulate her. I honestly can’t stop thinking about this, because I bet this is such a great feeling. I am extremely jealous, but I know I am close (ok I am not close when it comes to my mortgage though).
She talks about how she did some extreme things to save money and pay off debt faster, such as eating very cheaply. But she was also super determined in paying off all of her loans. I’ve always admired how determined she was with the whole process, and I wish I would buckle down more and do this.
I do wish I would’ve graduated without debt. I worked full-time in high school and while in college I worked full-time the entire time as well. I also had to live on my own due to my dad passing and this ate up a significant amount of the money that I made. I also had to (and I still am) support my mom and help her with bills. I did manage to pay off around half of my tuition bill each semester, so of course I would have more loans. The university I went to was around $30K a year (without room and board) and I also am attending an MBA program right now, so I’m not too down about being around $33K in debt for student loans when I have 2 business undergraduate degrees and I’m about to have my MBA as well.
I’ve talked about my goals related to my student loans a lot lately. I also talked about how I want my student loans to be decreased to around $20,000 by the end of this year. And I’ve talked about in my 5 year plan how I want them COMPLETELY gone by 2013.
- I’m guessing that my student loans will be gone by the end of 2013, or the beginning of 2014. I do not want to be one of those people that pay their loans for 20 years.”
- Student Loan Debt: $27,147.76
- Car Loan: $2,200
- Mortgage: $114,136 (this is an estimate)
- Credit Card: $0
Total Debt: $143,483.76
However, I have added around $4,000 more in loans to my student loan debt total. No one hurt me please! It doesn’t gain interest until 6 months after I get my MBA, so I’m not too upset by that because I plan on paying off my debt relatively fast, so too much interest should not build up. I could’ve used cash but I want to pay off my car first so that I could get rid of something that’s gaining interest at the moment.
I’m not sure how realistic having all of my student loans paid off by 2013 is, but I am about 80% positive that I can do this. It will be about $1,500 a month until the end of 2013, but in 2013 I am pretty sure that I can contribute higher amounts towards my loans.
My grace period of no interest won’t begin until the beginning of 2013, or if for some sad reason I cannot graduate until December of 2012, then I won’t have to start paying interest until June of 2013. So I do not expect too much interest to be building up.
Right now I have one student loan that gains interest. The interest rate is around 4.5% and this is the only student loan I am paying off right now, and I’m hoping that it will be gone relatively soon.
I would like to do more frugal things to pay off my debt faster. But there are certain things in life that I can’t help but spend my money on. Now I could do all of these things, but I honestly think that if I crossed the line of frugality and into cheapo land, that I would go insane. I’m not saying certain things don’t work for everyone, different routines for different people! I know some of you are probably still thinking about my traveling budget and how I could eliminate this. But I don’t think traveling is something I can give up.
- Eat more cheaply. I could definitely limit this and then probably contribute around a couple hundred more towards my debt.
- Restrict my clothing shopping. My shopping is definitely a lot better than what it used to be. I don’t spend a ton. But I would like to start selling stuff in my closet and hopefully breaking even with my clothing spending for at least most of the months in 2012. I know I have enough in my closet to do this, so here’s to hoping!
- Decrease my entertainment budget. My budget for this is still a little high, but it’s definitely not as bad before I started my blog. I didn’t realize how much I was spending on having fun until I started telling all of you and when I put the numbers in front of me, it terrified me.
I can’t wait until my student loans and all of my loans are gone. I’ll be able to spend money on the things that I want and hopefully retire super young. I can’t wait until I have that free feeling.
What things are you doing so that you can pay off your loans faster? How much in student loans do you have?
Related Posts
How I Paid Off $38,000 In Student Loan Debt In 7 Months- Consolidating And Refinancing Student Loans – What You Should Know
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- What I Would Change About My College Experience
- Should I Ruin My Retirement By Helping My Child Through College?
- How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500
Lane R says
It sounds like you have a lot figured out with paying off your loans. You don't want to be miserable just to pay off your debt. I would stay on the track you are on and maybe as your extra income grows you will be able to put more towards your loans.
Lisa says
I have not been doing as much as I should! You are going to rock it Michelle!
Live Simply- Live We says
I was fortunate, I only had a loan for my masters program. I did everything I could to pay off that debt. We worked extra jobs, worked overtime, quit eating out, and reduced our entertainment budget to about 30.00 a month. Honestly, it feels so good to be out of debt. I think you could get it paid off by. 2013 if you put your mind to it. We did the whole snowball idea, and it was really surprising how quickly we were able to pay it off. You do such a great job saving, budgeting, and planning that I know you will do great!
Tim @ Faith and Fina says
I've got a very similar goal and plan on dedicating extra side hustle money towards it. Our budget it pretty tight as it is, so it'll take a little creativity with side jobs.
- Lesley says
We have about $90,000 in student loans. Ugh, that makes me want to crawl in a hole….so, yeah it sickens me to see that number. I have no idea how long it will take us to pay that off.
Bryallen says
I have £24,000 ish in student loans (don't know for sure as can't start repaying it until April). The UK has a different system to the US.
Edward Antrobus says
I have about $32k in loans. I have a medical bill I'm making payments on and an old credit card I'm still paying off. But those will be gone either this year or next. Then I'll be throwing about $500/month at the loans and will have them paid off by the end of the decade at absolute latest.
Bethany says
Seriously.. I want to marry Jenna Marbles. She is hilarious! AND AMEN SISTA. We took out an equity line to pay off my schools loans (lower interest and payments)… at least that way when we sell our house theyre gone!
Newlyweds on a Budge says
After April 1st, the only debt we will have is my student loans. We've paid off more than $10,000 in debt the past 2 years, so I'm in no rush to get gazelle intense with my student loans, but I would like them paid off in a few years rather than 20. I think I'll create some sort of payment plan but won't be totally gazelle intense until next year. We need a break and some fun.
CC [AKA Frugalista] says
It took me 10 years to pay off my student loans and it did feel great. But I only had about 16k. Your college was so expensive!! Mine was not and I'm not doing grad school partly 'cause of the money and partly 'cause I don't know what I'd want to do. I paid cash for my car so I am debt free except for a mortgage and a time share that has about 2k left on it. I don't use Credit cards. I love being debt free. You are so determined I know you will get there and you will never go back!
Ashley says
These are great plans to follow! Keep up the good work and good luck!
frugalportland says
I said no haircuts until my credit card debt is gone. No shopping, either.
shoppingtosaving says
I don't have any student loans yet thanks to my parents but I plan on racking up over $100k if I go on to get my law degree. I'm not too excited about it.
Jax says
I have over 100K thanks to my law degree.. and that's MUCH less than some people I went to school with. Like you, my father passed away and my mom couldn't really help out. And in law school, they take away some govt funding if you work more than X hours a week (or they used to.. not sure if they still do). Anyway, it.blows. Especially b/c Oklahoma isn't known for crazy-high salaries haha… Total common misconception that lawyers rake in the dough. ha! I make more doing what I do now than I did practicing law. But, I have some loans in private and some in govt. I want them both gone, but the private ones are where I'm focusing a lot right now b/c the interest rate is much higher and the balance is lower. I just pay more when I can, put any bonuses (however meager) towards them, and try not to think about the big balance. I notice it getting chipped away and it feels good to finally be hitting principle instead of just interest. 🙂 My tips: Don't deprive yourself. I've tried that and it doesn't work well. You get angry and resentful of friends who buy things for themselves. But don't go crazy either. You're on the right track with the eating more cheaply, etc. Every little bit helps. Set a limit for your "fun" money. KNowing how much I can spend on fun/frivilous stuff each month really helps me not go overboard. 🙂
Nichole says
Girl I can relate! I've always had to support myself while going to school (well at 18, not before lol) and it is/was hard. But it sounds like you are on the right track to getting it paid down
Anonymous says
Anyone who is trying to get serious about paying off student loans needs to read this blog: <a href="http://www.nomoreharvarddebt.com” target=”_blank”>www.nomoreharvarddebt.com It's about a guy who is trying to pay off 90K in loans in 10 months. He only has 30K to go.
Anonymous says
Thanks! Great blog!
Michelle P says
Thanks everyone! It's also nice to know that so many people are similar to me.
Meagan Murtagh says
i've basically stopped eating to save money and put it towards debt. but hey! you lose weight too….ha, kidding, kidding! that's really unhealthy and dumb but going out to eat is way more expensive than eating in. my parents and i were just having the conversation last night about how student loans are going to turn our economy into a recession, just like the housing market. damn loans!xo the egg out west.
McVal says
If I could get the other 6 people in my house to eat Ramen for a few months exclusively, I'd do really well towards major debt reduction… But as it stands, they won't stand for it…dang.
Michelle P says
Haha eating Ramen would make life so much cheaper!
Malea says
So, maybe not Ramen eating exclusively, but check out Pinterest for ways to jazz up Ramen! I found several recipes that my son and I both like. Now I stock up on Ramen when it goes on sale and make super cheap, super filling, super yummy meals with the stuff (most recipes use the noodles, but not the seasoning).
Ella says
I have cut out all unnecessary expenses like take-away, eating out, lattes, clothes, spa etc… I don't feel deprived cause I still socialise with my friends inviting them for dinner at my home instead of going out. I do all spa myself at home and learned to do stuff at least as well as the salon etc… This saves me about US$200-300 and it all goes to my CC debt in addition to the payments I already have been doing… 🙂
Michelle P says
Good job!
Lena says
I hate how expensive school is! My Hubby finished his bachelor's in December, and even though we finished with no debt but it took him 6 years to finish, and all of our extra income, tax returns etc.went towards his tuition. We haven't had a vacation in 5 years. And it's VERY unhealthy for our marriage, and I'm so glad school is over for us. At least for a few years!
Michelle P says
I'm sorry, sounds like you guys need a vacation! Hope you guys enjoy the extra time!
Callie Lynch says
My husband and I are down to mortgage and student loans. It seems like student loans will never go away, they're daunting! We could definitely cut down on eating out, shopping and entertainment also. Hoping to have mine paid off this year though! Bennett Love
Ashley {hudson' says
Student Loans stink!! How wonderful it would be to be debt free. 😛
Fashion Meets Food says
Student loans are the worst aren't they. I have one loan that I have a little over $2,000 left on before that is paid off and then I have a massive loan that I have only been able to pay the minimum on and the interest is outrageous. The hubby and I are looking into getting a home so that will be even more debt. I love your post on things like this because it really helps me focus on myself and my things that need to be paid off. Best of luck to you! xo
Ella says
Here in Norway things are very different. Your student loan is the last loan you should pay off. It doesn't affect your credit worth, the interest rate is very low and it has very good conditions. Like if you get unemployed you get a break from paying interests until you have a new job!
Nick says
I have over $80,000 in student loans! I also have more than that saved in cash, but I'm thinking of buying a house and my student loan interest rate is only 2.5% (and if I die, so does the student loan) so instead of paying off the student loans and getting an $80,000 higher mortgage I'm going to put that money on the house, then POUND DOWN on my loan. Silly? Maybe. But there's a method to my madness 🙂
Bridget says
It's nice to hear I'm not the only one in this boat. My student loan debt is twice what my mortgage debt is. I'm working on increasing my savings and paying off my car loan before I really attack the other two. I have tracked my spending since mid-2010 and it really helped me to see where could I cut back on my regular spending. I have a budget that I'm pretty good about sticking to, but it does have wiggle room for things like entertainment. I only eat out 2-3 times per month, and have found otherways to decrease spending and make money on side projects. I do online surveys, sell clothes to consignment stores, and have become a fitness instructor in addition to my full-time job to bring in extra income and get my gym memberships for free. I also want to get into blogging. If you are thinking about selling your clothes, do it. If you're not wearing them they are just growing older in your closet when they could be bringing in a little side income. I buy almost all my clothes from Goodwill or consignment stores and most of the time am able to sell them back to consignment stores. (If not I can give them to Goodwill or Salvation Army for a tax write-off.) I've had better luck with selling to consignment stores than Craigslist or Ebay–they can charge more and even though you only get a percentage of what the item sells for you still don't have to track down the buyer, you can just go in and pick up a check. There have been times I have rustled through the gross bins at the Goodwill outlet (where you buy by the pound) just to turn around and sell them at a consignment store–easy money. It won't make you rich but every little bit helps pay off your debt, and I think of it as helping the environment by recycling.Good luck, everyone!
Laina says
Having a big student loan is not really easy to pay,It is really take a lot of time.Well good luck to you i hope this 2013 will decrease your student loan payment.
Malea says
I have nearly $100k in student loans – EEP! I don’t regret any of it, but I do regret not making a plan at the outset for how to pay those loans off. I’ve been slowly putting every extra penny towards them, but lately have had a lot of sudden and unexpected expenses come up, throwing me completely off track. I found your site through Pinterest and find it very inspiring. Thanks for re-energizing me in my quest to be debt free and have not only a sustainable income, but an income that will allow us to *breath* in the future.