HOW WE PAYED OFF 100K IN STUDENT LOANS IN 1 YEAR!
Many have asked how we managed to pay off my student loans in less than a year. I am, by no means, a financial expert. However, here’s how my husband and I tackled my hefty loans.
Our tips and tricks:
- Start making payments as soon as you can! I made my first payments before my loans came out of deferment. The earlier you start paying them off the better!
- Pay more than the minimum payment each month and as often as you can! – I made a payment each paycheck.
- Maximize your payments. Hubby (my excel genius) created a spread sheet so I could see exactly how much of my payment should go towards each loan to minimize interest.
- Save money anywhere you can! (This may seem like a no brainer, but I’m sure if you look into your own finances you are wasting more than you think!)
- Live at home! Ari lived at home while I was away at PA school. He was able to pay off his loans before I even finished school!
- Grocery shop at 5 different stores- jk, but compare prices and keep track of your spending. And set a realistic weekly/monthly grocery budget. (We have an excel spreadsheet that tracks our spending)
- Get rid of unnecessary expenses – For us, this was cable (don’t worry we still have Netflix!)
- Avoid going places where you’ll be tempted to shop or make sure you have lots of self control 😉
- If you are married, live off of one persons salary. This is a tough one, but try your best to achieve this! We lived off of my husbands salary, and my ENTIRE paycheck went into my loans!
- Put off big purchases. This one is very tough but extremely important! – Ari and I wanted to get into a house ASAP but as soon as we realized how much interest was accruing on my loans each month, it made more sense to put what we had set aside for a down payment directly into my loans to knock them down.
And most importantly, don’t get discouraged! You’ll get there!