I know how you're feeling. When I began my career I had $180k in student loans, some of which had interest rates of 10-12%. The mountain of debt seemed impossible. I'm now below 70k and I should be able to finish this journey in the next two years. You can do this!!! It will not be a quick journey with numbers like we have, but you are already making progress by taking this challenge head on. I'm proud of you :)
Yeah, I'm definitely aware this is not going to be an easy process. Congrats on getting below $70k and thank you for your encouragement! May I ask: what method did you decide to go with to pay down your debt? I'm really struggling to come to a decision especially as I keep comparing these interest rates.
Yay! I'm your 100th subscriber 🎉. Build momentum and celebrate the small victories. Whenever you feel hopeless consider taking a moment to think about the good things that you have in your life. Think about the fact that you were able to get an education, an advanced one at that. You can do this :)
Hi! Just found your channel on my suggested. First of all, welcome to the budget community! It's so incredibly brave of you to share your debt confession. I'm personally doing the snowball method. It's mathematically not as efficient as the avalanche method but I feel like finances are more than just math but is also a mental thing. I like to celebrate quick wins which motivates me to work harder. I know that your debt seems super daunting, but you made such an awesome step by making a channel you can use to be accountable. You got this! We are rooting for you 🥰
I understand how overwhelming this is but the fact that you’re paying attention to it instead of ignoring it is a step in the right direction! I think it would be helpful to see what the monthly payments are on each of your loans. I’m also looking forward to seeing the breakdown of your budget!! For me personally, some things felt really necessary until I prioritized paying off debt. Once I got serious about it, I was able to sit down and make some cuts in my spending. Keep your head up! Your situation today is not your situation forever, even though it may feel never ending right now.
Thank you so much! It definitely can be difficult to see the light at the end of this very long tunnel! I've filmed a little budget video this morning that will be posted on Monday and look forward to hearing back people's thoughts and ideas. The feedback and support has been amazing!
Oh my goodness girl, my bank account hurts for you! I swear student loan interest (even though it’s “low”) accrues so fast!! The first step to getting it paid off, is starting, and that’s what you’re doing. I can’t wait to see you tackle this!❤️
Great job in taking the first step and writing down everything that you owe. Those lenders should be ashamed of themselves. Loaning you money at 8% for school.
It's difficult to give guidance with the limited information we received. I don't know how many hours per week you currently work. Maybe you could get a part-time job and use that income to pay down your student loans. A part-time job that allowed you to bring home an extra $500 per month would give you $6,000 for the year towards your loans. This would enable you to pay off loans 1-02, 1-04, 1-06, 1-09, and 1-13 which total $5,324.27. You have to start somewhere and you already did the hardest part....acknowledging your total debt! Looking forward to following your journey and seeing your next video. Thanks for sharing ;-)
Hi! Thanks for commenting! I'm currently working 40 hours a week at about $2,881 per month after taxes. I have applied to a few part-time jobs but the schedules they're requiring haven't been very flexible. I finish my workday at 6pm and many of the shops and restaurants in my area close between 8pm and 9pm. Without jinxing my chances, an opportunity is coming up next month to negotiate my salary and I'll be hearing back about some overtime shifts this month. I'm definitely going to continue applying to more part-time positions.
Hi, I just found you. I keep hearing you apologizing for things you can’t control such as the city sound. Girl don’t worry about that :) I didn’t even notice it
Jeez. I graduated with $26k, plus interest was about under $30k. I paid it off a couple of years ago. I can’t even imagine….six figures in student loans? Was it worth it? I hope so.
You wont like this but it is realistic. Join the military (hopefully in the education you received from your use of SL's) You will not have rent, monthly utility bills etc, and your loans will be paid (garnished) as you serve your military enlistment. When you are discharged from the military, you should find yourself in such excellent financial control. Not the best decision but it is one logical decision to consider. You could breath easy for 3 to 4 years serving your country.
This makes me feel entirely seen and heard. I’m 33, and have $250,000 in student loan debt and also feel hopeless. It is incredibly hard to picture a life without debt. What did you study? I’m a PA and have made zero progress in my debt this year
Thank you for commenting! Our debt balances definitely seem impossible to make progress on. My career is one in which I won't see large amounts of money until I gain a lot more experience and get promoted to a much higher role. It will be a few years before I see my degree pay-off, unfortunately. I'm definitely trying not to get disheartened. I didn't study medicine or law but it's definitely an industry I was more passionate about. I think my decision for going to graduate school (while there was logic behind it) was partially an emotional decision. There are portions of my degree that I regret but without this degree, I would have still been living in a negative situation and I wouldn't have even had my current job as part of the reason that I got it was through the networking opportunity my program provided. It's definitely a small community in which everyone in it knows everyone somehow.
New Subscriber here. I am excited to be following your journey. You can do this. I would start out by just trying something and if it doesn't work then create your own plan. I really like the snowball method because it really helps you boost confidence with small wins quickly. Watch some Dave Ramsey videos and his daughter Rachel Cruz, great human beings.
Thanks for your comment! I have seen a few of their videos and I agree that the snowball method helps make the progress feel more tangible. I guess what really makes me overthink it is the comparison between $3 in interest a month vs over $300 in interest on another loan. At least right now, it feels like my payments have very little impact and while I might pay off one of the smaller loans in the next year, what does that mean in the bigger picture? Someone recommended the Undebt.It website to me to compare the two methods and I'm working on inputting all of my debt information this weekend to evaluate my options. I do like your idea of trying one out and seeing how it goes!
Who needs a $2500 laptop for school? I borrowed $10,700 for an entire masters from a state university. Why would anyone take out six figure loans for a degree unless it’s medical school. Even then im doing the avalanche method and attacking the highest interest rate largest loans first which saves money in the long run. Also made payments right after graduation as payments made without 120 days of a disbursement will apply 100 percent to the principal
Thanks for your comment! I think I used the laptop more as a blanket term but it also covered smaller items my dad helped me with while in school. My laptop was definitely not $2,500 but I can see how I misled everyone. In addition to helping me purchase a laptop, my dad helped me cover some of my groceries while I had to cut back on hours at my other job to complete a required internship for my program. I started making payments on my loans the same month that I graduated, however, my loan servicer still applied interest. I've been careful enough to track the interest to figure out how much I need to be paying and while it isn't much I have been putting extra into the loans. Thanks for the advice on the avalanche method. I'm definitely leaning more towards that than the snowball given my interest rates and balances.
Can you get a part time job where you work 4 hours on each of your days off? What about tutoring jr high and hs students? Definitely start with the loan you owe your father and then start with the smallest debt. Can you live at home for free? Can you bring in a roommate? What about overtime at your 9 to 5? Sell everything and live minimally too.
I'm trying to find a second job now. I can't live at home for free. I did originally look at jobs near my parents but I would be looking at having to buy a car, commuting over an hour each way, and my current position was making 30% less there. I do currently live with roommates and my job does offer occasional overtime hours but It's typically 2-4 hours a month. I'm signing up for as many overtime shifts as possible when they get announced.
Smallest amount first. A lot of you always say no to the smaller balance....which is strange to me. Pay it off, it's the smallest amount due. What do you think will happen to the smallest balance if you ignore it, and let it accrue? It becomes bigger than the original number. And then you will ask yourself why you let it get bigger, rather than pay it off when it was smaller. Do not fall into the self sabotage mode. Just start.....and stop analyzing for a "perfect solution".....there is none. Just start. Good luck. And congrats on finishing school :)
No, I'm not. I live in a high-cost-of-living area with roommates to cut down on living expenses. Thankfully, I started a full-time job in my industry just before graduating from grad school. I did apply to jobs in other states and towns especially closer to where my parents live but it didn't financially make sense. My same role now in other states pays about 30% less and there was a lack of opportunities for growth. I live in an area with decent public transportation so I don't own a car but living at my parents' I was looking at over an hour commuting and having to buy a car, and paying car insurance. When I did the math, I wasn't going to be able to survive if I moved. I'm working on summarizing my expenses for the last three months to come up with a more accurate budget for September. I think that might give me a better idea of what exactly I'm looking at.
I think the snowball method really does work for a lot of people. I guess I'm just hesitant because it would still take me a while to pay down the smaller loans and the $15 I would have for a snowball doesn't seem like it would make enough of a difference? I'm still working on putting all of my debt onto undebt.it to figure out what each method would mean for me and what the consequences of my debt will be.
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I know how you're feeling. When I began my career I had $180k in student loans, some of which had interest rates of 10-12%. The mountain of debt seemed impossible. I'm now below 70k and I should be able to finish this journey in the next two years. You can do this!!! It will not be a quick journey with numbers like we have, but you are already making progress by taking this challenge head on. I'm proud of you :)
Yeah, I'm definitely aware this is not going to be an easy process. Congrats on getting below $70k and thank you for your encouragement! May I ask: what method did you decide to go with to pay down your debt? I'm really struggling to come to a decision especially as I keep comparing these interest rates.
Yay! I'm your 100th subscriber 🎉. Build momentum and celebrate the small victories. Whenever you feel hopeless consider taking a moment to think about the good things that you have in your life. Think about the fact that you were able to get an education, an advanced one at that. You can do this :)
Hi! Just found your channel on my suggested. First of all, welcome to the budget community! It's so incredibly brave of you to share your debt confession. I'm personally doing the snowball method. It's mathematically not as efficient as the avalanche method but I feel like finances are more than just math but is also a mental thing. I like to celebrate quick wins which motivates me to work harder. I know that your debt seems super daunting, but you made such an awesome step by making a channel you can use to be accountable. You got this! We are rooting for you 🥰
I started with 23 loans. I have 13 now. You can do this!!! snowball method is motivating!! Don't worry about interest right now.
I understand how overwhelming this is but the fact that you’re paying attention to it instead of ignoring it is a step in the right direction! I think it would be helpful to see what the monthly payments are on each of your loans. I’m also looking forward to seeing the breakdown of your budget!! For me personally, some things felt really necessary until I prioritized paying off debt. Once I got serious about it, I was able to sit down and make some cuts in my spending. Keep your head up! Your situation today is not your situation forever, even though it may feel never ending right now.
Thank you so much! It definitely can be difficult to see the light at the end of this very long tunnel! I've filmed a little budget video this morning that will be posted on Monday and look forward to hearing back people's thoughts and ideas. The feedback and support has been amazing!
Newbie here! Great debt free video. The number way to make change is to acknowledge the problems. Good luck
Oh my goodness girl, my bank account hurts for you! I swear student loan interest (even though it’s “low”) accrues so fast!! The first step to getting it paid off, is starting, and that’s what you’re doing. I can’t wait to see you tackle this!❤️
Great job in taking the first step and writing down everything that you owe. Those lenders should be ashamed of themselves. Loaning you money at 8% for school.
New Subbie! I’m starting from the beginning and catching up! Just take your time. Happy Friday! ❤
It's difficult to give guidance with the limited information we received. I don't know how many hours per week you currently work. Maybe you could get a part-time job and use that income to pay down your student loans. A part-time job that allowed you to bring home an extra $500 per month would give you $6,000 for the year towards your loans. This would enable you to pay off loans 1-02, 1-04, 1-06, 1-09, and 1-13 which total $5,324.27. You have to start somewhere and you already did the hardest part....acknowledging your total debt! Looking forward to following your journey and seeing your next video. Thanks for sharing ;-)
Hi! Thanks for commenting! I'm currently working 40 hours a week at about $2,881 per month after taxes. I have applied to a few part-time jobs but the schedules they're requiring haven't been very flexible. I finish my workday at 6pm and many of the shops and restaurants in my area close between 8pm and 9pm. Without jinxing my chances, an opportunity is coming up next month to negotiate my salary and I'll be hearing back about some overtime shifts this month. I'm definitely going to continue applying to more part-time positions.
u got this !!!
New subscriber
Hi, I just found you. I keep hearing you apologizing for things you can’t control such as the city sound. Girl don’t worry about that :) I didn’t even notice it
Jeez. I graduated with $26k, plus interest was about under $30k. I paid it off a couple of years ago. I can’t even imagine….six figures in student loans? Was it worth it? I hope so.
You wont like this but it is realistic. Join the military (hopefully in the education you received from your use of SL's) You will not have rent, monthly utility bills etc, and your loans will be paid (garnished) as you serve your military enlistment. When you are discharged from the military, you should find yourself in such excellent financial control. Not the best decision but it is one logical decision to consider. You could breath easy for 3 to 4 years serving your country.
This makes me feel entirely seen and heard. I’m 33, and have $250,000 in student loan debt and also feel hopeless. It is incredibly hard to picture a life without debt. What did you study? I’m a PA and have made zero progress in my debt this year
Thank you for commenting! Our debt balances definitely seem impossible to make progress on. My career is one in which I won't see large amounts of money until I gain a lot more experience and get promoted to a much higher role. It will be a few years before I see my degree pay-off, unfortunately. I'm definitely trying not to get disheartened. I didn't study medicine or law but it's definitely an industry I was more passionate about. I think my decision for going to graduate school (while there was logic behind it) was partially an emotional decision. There are portions of my degree that I regret but without this degree, I would have still been living in a negative situation and I wouldn't have even had my current job as part of the reason that I got it was through the networking opportunity my program provided. It's definitely a small community in which everyone in it knows everyone somehow.
Yup same! 125k student loans ;(
New Subscriber here. I am excited to be following your journey. You can do this. I would start out by just trying something and if it doesn't work then create your own plan. I really like the snowball method because it really helps you boost confidence with small wins quickly. Watch some Dave Ramsey videos and his daughter Rachel Cruz, great human beings.
Thanks for your comment! I have seen a few of their videos and I agree that the snowball method helps make the progress feel more tangible. I guess what really makes me overthink it is the comparison between $3 in interest a month vs over $300 in interest on another loan. At least right now, it feels like my payments have very little impact and while I might pay off one of the smaller loans in the next year, what does that mean in the bigger picture? Someone recommended the Undebt.It website to me to compare the two methods and I'm working on inputting all of my debt information this weekend to evaluate my options. I do like your idea of trying one out and seeing how it goes!
What are your degrees in?
Hi, you got this! What are your degrees in?
Who needs a $2500 laptop for school? I borrowed $10,700 for an entire masters from a state university. Why would anyone take out six figure loans for a degree unless it’s medical school. Even then im doing the avalanche method and attacking the highest interest rate largest loans first which saves money in the long run. Also made payments right after graduation as payments made without 120 days of a disbursement will apply 100 percent to the principal
Thanks for your comment! I think I used the laptop more as a blanket term but it also covered smaller items my dad helped me with while in school. My laptop was definitely not $2,500 but I can see how I misled everyone. In addition to helping me purchase a laptop, my dad helped me cover some of my groceries while I had to cut back on hours at my other job to complete a required internship for my program. I started making payments on my loans the same month that I graduated, however, my loan servicer still applied interest. I've been careful enough to track the interest to figure out how much I need to be paying and while it isn't much I have been putting extra into the loans. Thanks for the advice on the avalanche method. I'm definitely leaning more towards that than the snowball given my interest rates and balances.
What is your degree in that cost 200K?
Can you get a part time job where you work 4 hours on each of your days off? What about tutoring jr high and hs students? Definitely start with the loan you owe your father and then start with the smallest debt. Can you live at home for free? Can you bring in a roommate? What about overtime at your 9 to 5? Sell everything and live minimally too.
I'm trying to find a second job now. I can't live at home for free. I did originally look at jobs near my parents but I would be looking at having to buy a car, commuting over an hour each way, and my current position was making 30% less there. I do currently live with roommates and my job does offer occasional overtime hours but It's typically 2-4 hours a month. I'm signing up for as many overtime shifts as possible when they get announced.
Smallest amount first. A lot of you always say no to the smaller balance....which is strange to me. Pay it off, it's the smallest amount due. What do you think will happen to the smallest balance if you ignore it, and let it accrue? It becomes bigger than the original number. And then you will ask yourself why you let it get bigger, rather than pay it off when it was smaller. Do not fall into the self sabotage mode. Just start.....and stop analyzing for a "perfect solution".....there is none. Just start. Good luck. And congrats on finishing school :)
yikes
Are you still living at home?
No, I'm not. I live in a high-cost-of-living area with roommates to cut down on living expenses. Thankfully, I started a full-time job in my industry just before graduating from grad school. I did apply to jobs in other states and towns especially closer to where my parents live but it didn't financially make sense. My same role now in other states pays about 30% less and there was a lack of opportunities for growth. I live in an area with decent public transportation so I don't own a car but living at my parents' I was looking at over an hour commuting and having to buy a car, and paying car insurance. When I did the math, I wasn't going to be able to survive if I moved. I'm working on summarizing my expenses for the last three months to come up with a more accurate budget for September. I think that might give me a better idea of what exactly I'm looking at.
You could pay off some of the lowest interest loans in order to give your snowball a bigger impact on the higher interest loans.
I think the snowball method really does work for a lot of people. I guess I'm just hesitant because it would still take me a while to pay down the smaller loans and the $15 I would have for a snowball doesn't seem like it would make enough of a difference? I'm still working on putting all of my debt onto undebt.it to figure out what each method would mean for me and what the consequences of my debt will be.