Breaking Free from Debt: A Personal Journey
The Debt Trap
I’m sure you’ve heard it before: debt is a prison, and paying it off as soon as possible is the key to freedom. With my bachelor’s degree and a whopping $30,000 in loans, I knew I had to take drastic measures. I moved back in with my parents and started working at my local hospital, determined to pay off my debt.
Hustling for Freedom
I worked hard, averaging over 40 hours a week, and took advantage of every overtime opportunity that came my way. I used a hybrid of the snowball and tsunami repayment methods, focusing on the lowest loan balance that also felt mentally draining. Between December 2014 and October 2015, I paid off an impressive $18,000 of my loans.
The Dark Side of Debt Repayment
But as time went on, I began to feel drained. The overtime took a toll on my body, and the mental pressure to stay ahead overwhelmed my mind. I started to feel guilty about every necessary purchase, even gas for my vehicle. I realized that I needed to rethink my strategy.
A New Perspective
A conversation with a friend, who was about to start a job as a rural public school teacher, opened my eyes. She told me about a program that would cancel 35% of her federal loans if she stayed committed for two years. I was jealous, but then I realized that I too could benefit from such a program once I complete my professional school in the healthcare field.
Finding Balance
I stopped throwing all my disposable income at the government and started directing money into savings for emergency fund growth, my IRA, and a travel fund. I also allow myself to purchase one fun thing each month, like boxing gloves or a new cactus. This new outlook has brought me mental relief and a sense of logic, knowing that I’ll need to take on more debt for graduate school.
What’s Right for You?
Everyone’s journey to debt freedom is different. Some people thrive on shopping bans, while others need a detailed budget. You have to decide what works best for you. For me, building my credit score and saving for my dream trip to Machu Picchu inspires me more than the number on my loans decreasing.
Loan Forgiveness Programs
If you’re interested in learning more about loan forgiveness programs, there are several options to explore. Some require government service and consistent loan payments for a minimum of 10 years, while others offer immediate cancellation after service. Do your research and start with the official government website.
About the Author
Emily is a post-grad pursuing her passion for healthcare and kickboxing. She hails from Minnesota and enjoys hotdish on a weekly basis.
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