She Strengthens

Breaking Free from Student Loan Debt: One Couple’s Journey

Student loan debt is a harsh reality for many millennials. With over 70% of college graduates burdened by these loans, it’s no wonder it’s a major concern for young adults. My wife and I were no exception, graduating with a combined debt of around $40,000. We knew we had to take action to pay off our loans quickly, but it wasn’t until we adopted a few key strategies that we started to see real progress.

Our Journey Begins

After graduating in May 2013, we took advantage of the six-month grace period on our loans, not realizing that interest was accruing during that time. For the next 21 months, we made slightly above-minimum payments, while focusing on building up our savings and paying for a wedding and honeymoon. It wasn’t until August 2015, when I started learning about effective financial management, that we began to take our debt repayment seriously.

Gaining Momentum

We started by building up a healthy emergency fund, which gave us a sense of security and allowed us to focus on paying off our loans aggressively. As of November 2016, our balance had decreased to around $12,000 – a significant drop from the original $40,000. We’re proud of the progress we’ve made, but we know there’s still work to be done.

Strategies for Success

So, how did we do it? Here are some of the strategies that helped us pay off our debt faster:

• Building an Emergency Fund: We saved up more than the recommended $1,000 to protect ourselves from future financial hardships.
• Gazelle Intensity: Attending Financial Peace University and adopting Dave Ramsey’s methods helped us view our debt with a sense of urgency and intensity.
• Tracking Spending: Using Mint to track our expenses and set up a monthly budget allowed us to identify areas where we could cut back and allocate more funds towards debt repayment.
• Challenging Expenses: We reviewed our regular expenses and found ways to cut back on unnecessary spending, freeing up more money to put towards our debt.
• Side Hustle: I took on a second job with a minor league baseball team, which provided extra income that we could put directly towards our debt.
• Automating Payments: We set up automatic payments to ensure we stayed on track with our debt repayment plan.
• Celebrating Progress: We made sure to recognize and celebrate our milestones along the way, which helped keep us motivated and focused.
• Patience and Teamwork: We remained patient and supportive of each other throughout the process, which was crucial in staying on track.

Final Thoughts

Paying off student loan debt is a long and challenging journey, but with the right strategies and mindset, it’s possible to make significant progress. By gaining awareness of your finances, staying motivated, and adopting a few key principles, you can start to break free from the burden of student loan debt.