Reflections on a Year of Debt Repayment
As I flip through the pages of my trusty planner, I’m reminded of the importance of taking stock of my progress. Each December, I transfer important dates and events to the new year’s planner, a ritual that brings me both excitement and comfort. This annual review allows me to reflect on my accomplishments, cherish fond memories, and set a course for the year ahead.
The Power of Tracking Progress
One particular annotation caught my attention: my loan balance had decreased by a staggering 66% in 2016. I had started the year owing $15,217.73, and by the end of it, I was down to $5,156.39. This realization was both astonishing and motivating. Seeing the tangible results of my efforts has fueled my determination to continue tackling my debt.
A Brief History of My Debt
After graduating in 2013 with $27,000 in student loan debt, I knew I had to take action. I began making payments in January 2014, focusing on paying off the private loan first. With that hurdle cleared, I set my sights on tackling the remaining federal loans, which had interest rates ranging from 3% to nearly 7%.
Strategies for Success
While I’m no financial expert, I’ve learned a thing or two about debt repayment. Here are some strategies that have worked for me:
- Pay more than the minimum: Whenever possible, I pay extra towards my loans, prioritizing those with the highest interest rates.
- Automate your payments: I schedule my payments in advance, ensuring I never miss a payment. Plus, some loan servicers offer a small discount for automatic payments.
- Partner up: Living with someone and sharing expenses has significantly reduced my financial burden.
- Own your car outright: No car payments mean more money towards debt repayment.
- Avoid credit card debt: I’m debt-averse and pay off my balance in full each month.
- Live outside major metropolitan areas: Lower costs of living, including rent, groceries, and gas, have helped me allocate more funds towards debt repayment.
- Pretend extra cash doesn’t exist: Any unexpected windfalls go straight towards my loans, as if they never existed.
- Be hyper-selective about purchases: I’ve learned to celebrate small victories and find joy in repairing and repurposing items instead of buying new.
Looking Ahead
As I embark on the new year, I’m committed to continuing my debt repayment journey. I hope that sharing my experiences will inspire others to take control of their finances and work towards a debt-free future.
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