Browsing Tag

debt payoff

Ways_to_Keep_Motivated_During_Debt_Payoff
Student Loans

Ways to Keep Motivated during Debt Payoff

Recently I have had some serious low blows in terms of keeping motivated during debt payoff. Things just don’t seem to be going my way and it’s making it hard to stay motivated. I’m extremely stressed at work this year, which is making me extremely tired. This then makes it hard to get myself to all of my side jobs in the evenings. I recently tried refinancing my student loans only to be told I have too much debt. Why thank you sir, I’m aware I’m drowning in $156,000 in student loan debt, but do you see that I’ve paid off $44,000 in 14 months?! I feel like my life revolves around my student loans and it’s been incredibly hard for me to keep pushing myself recently, especially after being told I can’t refinance because I have too much debt. However, there are some ways I do motivate myself when I feel like giving up.

 

Ways_to_Keep_Motivated_During_Debt_Payoff

Focus on your accomplishments.

The first thing I always do when I feel unmotivated is look at how far I’ve come in my debt payoff and remind myself I’m doing everything I can. I look at my monthly payments that I’ve made and see how much they have increased over the last 14 months. It’s important to acknowledge and celebrate the big and little victories in this long journey. I celebrated paying off my first loan this past year and celebrated breaking into 5 figures for my private loans. It’s important to do that to make this journey a little less overwhelming.

Recognize the sacrifices you’re making.

When I’m feeling unmotivated I remind myself about all the sacrifices I’m already making for my debt payoff. I remind myself that I’m already doing so much, I don’t need to do more than I’m doing right now. I work 4 jobs currently, live with my parents, and budget my spending each month. For my sanity, I need to remind myself that it’s enough, I can’t do more than that.

Find others who are going through debt payoff.

By far the most motivating thing for me to do is to head over to Instagram and Pinterest and find others who are working on their debt free journey. I find it so motivating to hear other people’s debt free stories and how they got to debt freedom. It can be hard to find people around me that can relate to my situation and want to pay off their debt, which is why the Internet can be a wonderful thing.

I hope these few things can help you when you’re feeling down on yourself about your debt payoff. I know it has helped me when I feel like I’m never going to finish paying this debt off. What are some ways you keep motivated when you feel like giving up?

Debt_Payoff_on_a_10_Month_Salary
Student Loans

Debt Payoff on a 10 Month Salary

Debt_Payoff_on_a_10_Month_Salary

Debt payoff can be tricky, especially when you’re on a pay schedule that doesn’t provide you with a paycheck every month. However, with some planning and budgeting, it can be easy to get around this problem. I’m a teacher and am on a 10 month salary, meaning I don’t get a paycheck during the summer months. But I was still able to make extra payments on my student loans in the month of July, with no paycheck from school. Continue reading to find out what I did to lower my debt by over $4k in the month of July.

Plan for the Months Ahead

It’s so important to plan and budget in order to make your debt payoff plan work for you. My monthly minimum payment is roughly $1,500 for my student loans, so I knew I needed to set aside $3,000 for my loan payments in July and August. This way I knew I had enough budgeted for at least my student loan payments in case I wasn’t able to find a job over the summer. So, $3,000 spread across 10 months is $300/month, it really wasn’t bad at all.

Find Side Hustles

Side hustles are the best thing ever. It’s always exciting to make extra money to put towards your debt. I know, that sounds crazy, but I seriously get a rush of excitement every time I make an extra payment and lower my daily interest I’m paying. I’m pretty sure these loans have made me a little crazy ha! But, I do after school tutoring at school during the school year and tutor local kids over the summer. I have also found a wonderful family to babysit for this summer.

July_Loan_Payment_IG

Debt Payoff

I ended up not even needing that extra money I saved throughout the school year, as you can see from my July loan payment. I easily made my minimum payment of $1,500 and was able to payoff much more than that. It’s amazing what you can do with a little planning ahead 🙂 What have you done for your debt payoff on an unpredictable pay schedule?

Why_Im_Not_Hiding_From_My_Student_Loans
Student Loans

Why I’m Not Hiding From My Student Loans

Why_Im_Not_Hiding_From_My_Student_Loans

When I was in grad school and finally came to terms with the fact that I was going to be roughly $200k in debt when I graduated, I began researching. I spent hours finding tips and tricks to get out of debt and to do it fast. One of the biggest things I took from my research was that I shouldn’t be embarrassed by my debt. So many people hide from their debt, ignoring it exists. I didn’t want to do that. I began telling my friends and family about my debt, when it came up in conversation. They couldn’t believe it. They didn’t understand how I could have possibly racked up that much student loan debt. But, it’s possible. For some reason our society thinks we shouldn’t talk about debts because it’s normal to have debt. So often I hear people brush of debt like everyone has it and it’s the only way to live. Oh, but student loans are “good debt”, no debt is good debt! I don’t want that life, forever needing to give my hard earned money over to the company I borrowed it from years earlier. I want to keep my money!! Which is why I decided not to hide from my student loans.

I know many people who are simply ignoring that their student loans exist. I’m serious, they are letting their credit score absolutely tank and not worrying about it. They figure in seven years it will be wiped away and then I can start over. But, then you need to rebuild your credit and doing that after destroying your credit is incredibly difficult. It will take years and extreme diligence to bring it back up. Not to mention that having a bad credit score makes it incredibly difficult or impossible to rent an apartment, get a car, so many things that a 20 something would typically be doing. For right now, I live at home, but eventually I plan to move out. When that happens, I want to have the freedom of renting a place, if that’s what I choose to do. I don’t want my student loan debt to hold me back, even more than they already are.

I understand when you graduate from college you’re most likely in your 20s and think that it is an absurd amount of money. I get it. I was there, sitting in my college apartment staring at my computer screen in complete shock at the massive amount of debt I owed. How did I possibly rack up such a high number?! But you need to accept your debt, and make a plan to tackle it as soon as possible. Get angry, and get motivated and be sure to make a realistic plan for yourself. So, what’s your student loan plan, are you going to pay them off or ignore their existence?

3-Things-I-Spend-Money-On-Each-Month-Blog
Money Management

3 Things I Spend my Money On Each Month

3-Things-I-Spend-Money-On-Each-Month-BlogI know, you’re probably thinking, this girl is trying to pay down a MOUNTAIN of student loan debt, why is she spending money on things?! Until about a year ago, this was exactly how I thought. When I finally realized just how crazy my student loan debt was in September 2014, I made my budget completely bare bones. I cut out everything, I mean everything. I was living off of eggs and ramen, never doing anything that involved spending money, and wasn’t really thinking about my health. Until I realized I needed to make a lifestyle change in order to save money in the areas I thought I couldn’t save in, like doctor’s office visits, medication, etc. I have some pretty horrible sinuses that have caused me a lot of problems throughout my life, one of the biggest being how much money it costs to help me live day to day. These are the things that I splurge on each month, and in return I am living a much happier, healthier life:

#1 Organic Food

This was a huge decision for me. Organic food is expensive and at first I couldn’t justify spending that much money on food. But, I started searching the Internet for ways to deal with horrible sinus problems, and most of them repeated the same things. A diet that consists of organic, healthy foods and minimal dairy. I made the switch to see if there was any difference, and I haven’t gone back since.

#2 Gym Membership

Working out and being more active was part of my new lifestyle I was trying. When I was still in grad school in September 2014, this wasn’t an issue for me. As a full time student, I was able to get into all of the university gyms. However, when I finished my degree and moved back home to pay down my loans in July 2015, this became I huge issue. I told myself that I would work out at home and run outside, but that never happened. I decided to try out a gym because I thought paying for it would motivate me. It definitely has. If I’m paying for it, you can guarantee I get my butt to the gym whenever possible.

#3 Being Social

Now, I’m not saying I go crazy and spend a ton of money each month doing things. However, when I was in grad school, I didn’t do anything because I wanted to push as much money as possible to my debt. I was miserable and missed out on a lot of fun times with my friends because of it. I realize now that it’s more important to spend a little more money doing things with the people you care about, than to be alone.

These are three of the things that I have chosen to splurge on while paying down my debt because it allows me to be happier and healthier. Since switching my diet and being more active, I rarely get sick and have been able to stop taking almost all of my daily sinus medications. Even though I needed to spend a little more money, I’m saving money in other ways because of it. What are some things that you splurge on?

My Student Loan Binder
Student Loans

My Student Loan Binder

My Student Loan Binder

UPDATE: I have made all my student loan binder sheets available for you to download to make your very own student loan binder!

Recently I posted about some tips for making a debt payoff plan, one of my tips was to get organized. I organize all of my loan information in my student loan binder. I’m a binder girl, I just really like how easy it is to find everything I need in a binder. And it keeps things nicely organized. By having a binder just for student loans, it reminds me just how big a part of my life they are currently. I’m excited for the day when I wont have to have a student loan binder, but for the time being, it helps me stay organized and tackle this massive amount of debt.

When I first decided that I needed a student loan binder, I wanted to make sure it was pretty. That sounds kind of ridiculous as I type it, but student loans can be pretty depressing, why not make it a little more exciting! That made me pick lime green for my binder, it’s just such a nice pop of color to brighten my mood when I sit down to track my debt. And, I happened to find it while I was in the process of moving home (hah! Free baby 🙂 ). And of course I had to make a nice cover sheet for my binder, another way to brighten my mood.




Now, onto the inside of this bad boy. I broke my student loan binder into 4 sections: Debt, Private Loans, Federal Loans, and TEACH Grant. Debt is where I keep my payoff plan and a student loan payoff page that allows me to see the “big picture” of my student loan debt. This has all my loans on the page with how much I paid that particular month, the balance remaining at the end of the 6 months, and total payment for each month. This section is where I can see how I’m doing in my payoff plan, and how much more I have to go. The following 3 sections are places to keep things organized for my specific private and federal loans, and my TEACH grant that I have. I keep a log for each individual loan that helps me see how much I paid each month on that particular loan. For my TEACH grant, I don’t keep a log for each individual grant because I don’t need to pay these back, assuming I meet all the requirements in the next 8 years.

A binder system for organization is what works for me, the most important thing is to make sure your system works for you. Find a system that works and stick with it! I find it so motivating to input all the numbers and see how much I have paid off. I try really hard not to look at what I have left because it makes this payoff seem impossible, by focusing on how much I have already done, it motivates me so much more. How do you organize and keep track of your student loans and other debts?

5 Tips for Making a Debt Payoff Plan
Student Loans

5 Tips for Making a Debt Payoff Plan

5 Tips for Making a Debt Payoff PlanNow that I’m finished with my grad degree, my loan payments are about to begin. This might sound crazy, but I’m actually really excited to start this journey. As I shared in my student loan story I have about $200k in student loan debt, mostly from my undergraduate studies. When it all really hit me how much I owed, I quickly began searching the internet and Pintrest to find out as much information as possible about debt payoff. This was almost a year ago now (Fall 2014) and I can’t wait to put my plan into action. Through the process I found these helpful tips that I have been using throughout grad school, and will really start using next month when my first bill comes in the mail!

1. Budget

Find a budgeting system that works for you, and stick with it! I was shocked to find how much I was carelessly spending each month, mostly on going out to eat. The easiest way I have found to budget is to use Mint to track all my spending. I have all my banking accounts linked up to my Mint account and created a budget for the things I spend money on each month, like gas and groceries. Also, it reminds you of the bills you have to pay and you can get a free credit check with advice on ways to improve your score! They even have an app to make it super easy to check and edit your budgets whenever you want.

2. Manage your Loans

For me, this meant using ReadyForZero to manage my loans. This tool allows you to enter in all of your loans and create a plan to pay off your debt. It even has this nifty tool that lets you see how much faster you would pay off your debt and how much your would save by making larger payments. Also, it shows you how much your daily interest is, talk about motivation!!! I have to say I am not planning to follow my plan completely that they mapped out for me because I don’t love the order that they pay loans off in. They go by the smallest loan with the highest interest rate, and that just isn’t something I want to do. However, this tool is wonderful to see your progress and easily calculate daily interest rate, how much is left, etc.

3. The Snowball or Avalanche Method 

Look into Dave Ramsey, the man is a financial genius. He has some great tips about managing your finances in general, but has a debt repayment plan called, the snowball method. This method has you focus paying down one specific loan by putting all of your extra money towards this loan. All your other loans you should make a minimum payment on. When your focus loan is paid off, you apply that payment to your next focus loan. How you pick your focus loan should have some reasoning, either you are focusing on loan amount, interest rate or a combination of both. If you’re focusing on the smaller loans first, this would be the snowball method. This method plays more to emotions because you get small victories in the beginning to motivate you through the end. If you focus on your highest interest loans, this is the avalanche method. This method is purely mathematics and allows you to pay less in interest. Personally, I am focusing on my highest interest rate loans first, if I have more than one loan at a certain interest rate, I focus on the larger one.




4. Get Organized

This is going to look different for everyone, but it is important to find an organization method that works for you. Personally, I use a combination of ReadyForZero and a binder. ReadyForZero allows me to keep track of the bigger picture of my plan, how much I’ve paid off, my daily interest amount, etc. While a binder keeps all those pesky bills organized because they tend to go missing if they don’t have a home, and it helps me keep track of each individual loan I have.

5. Have Fun

During grad school I said no to doing a lot of fun things because it would cost me money. At the beginning, I was in hardcore debt payoff mode, and wanted to put as much money as possible to my loans. But I sacrificed having fun with my friends, and eventually the stresses of going to grad school full time and working full time weighed down on me. I realized I needed to enjoy myself and quickly found ways to do that without spending a lot or any money. My personal favorite is having a potluck with friends. What’s better than great food, great friends, and wine. It’s a lot of fun, and pretty cheap, too.

The goal of paying off student loans is pretty hefty, with a plan it makes it much more manageable. I hope these 5 tips help you as much as they have helped me to plan my debt payoff. What are some tips you have for making a debt payoff plan?