How I Paid Off $45k Student Debt in 3 Years
In this 30 minute tell-all from the Money Mindset Podcast, I get real about how I struggled with and overcame my student debt, managing to pay down over $40k+ in a little over three years. Intro and podcast link below!
“How did you pay off your debt in three years?”
It is the No. 1 question I’ve received since starting Beworth Finance, hands down.
Maybe it’s because “dealing” with debt has become so normal? Maybe it’s because some people knew i was making less than the debt I owed when I first move to DC? Or maybe it’s because I didn’t really talk about it back then — oh, how times have changed!
But for whatever reason, I get the same question all. the. time.
So how did I pay off all of my debt?
The short answer is:
1. I prioritized my debt
Once I found out it would cost me an extra $20k in interest if I waited the full 10 years to pay it off, things got real, REAL quick. I didn’t 100% limit, but I definitely cut down on going out, brunch, nails, etc. and did whatever I could to earn more (negotiated my salary, side jobs, sold things on craigslist, etc.) to make those extra payments.
2. I automated ALL of my finances
The purpose of automating as much as it can when it comes to your finances, is taking the day-to-day decisions out of your money. This will help you meet your money goals, so your savings (or investments) run on autopilot and you don’t have to think about it. Truth is, if I HAD to think about it, back then I, I would have likely chosen brunch, or $30 worth of things at Target from the $1 section and call it a “deal”.
Automating your finances is one money move.
You ready for more?
3. I used the avalanche method
A.K.A. I applied any extra payment to the highest interest debt, and worked my way down. If you can swing it, this will save you the most money overtime. If not , try the "snowball method", by applying any extra payment to the lowest balance debt, regardless of the interest rate. When you knock that debt out, move to the next lowest balance, and so on.
There is no doubt that at the most basic level, paying off my debt boils down to those three things — but I know a lot of you are still looking for more information. Like...
What made me flip the switch to prioritize my debt over anything else?
How did I generate extra income?
Any tips or tricks for making it a little bit easier?
I totally get it, and today I’m sharing!
Want to know more about my student debt journey? Check out my podcast debut on the Money Mindset Podcast! It's a 30 minute tell-all where its host, Ashley Patrick, asks me all your favorite questions (and a few new ones!!) about how I paid down my student debt.
You can also find the podcast here.
