Growing up in a family that struggled financially, I knew that I didn’t want to live my life with the same stress. As soon as I turned 18 and began going to college, I took my time to learn about debt, paying it off, credit, and other financial aspects. Now that I’m done with school and living life, my husband and I have been working hard to pay off debt quickly. But before I start providing updates, you need to know where we started! So let’s add it up! *Keep in mind, these are estimates and not exact figures.*
When I graduated with my Bachelors in December of 2016, I had quite a bit of debt, even with me having about $20,000 of scholarships and working two jobs for 3 out of the 4 years. After accumulating interest, it was about about $37,000.
Bachelor’s debt: $26,000
In the following May, I traded in my car that went through high school, college, and my delivery driver days for a 2014 Volkswagen Jetta. While I was able to get a super low interest rate, I wish I would have shopped around more. For the $15,000 I took out, I could have gotten a newer model from the Volkswagen dealer. But now I know! You live and you learn, right?
Jetta Car Loan: $15,000 – 5 year term
In December 2017, B needed a new car. His 4Runner lived a good life, but he wanted a truck. So we went shopping and found a 2010 Nissan Frontier, and it’s been a great purchase. It came to $17,000, and we sold the 4Runner privately to pay off about $1,500 right at the beginning.
Nissan Loan: $17,000 – 5 year term
March of 2018: I began my Masters program while teaching full time. It was the next step, as before this, I was struggling, living month to month. However, with going back to school, my student loan payments were deferred until 6 months after I would graduate – yes please! Plus, with getting my Masters, I receive a $10,000 pay increase on my contract. When my Masters came out to $17,600, I realized it would pay for itself within 2 years. So I just did it!
Masters debt: $17,600
That summer, B and I began house hunting, as our rental situation was not going well. We worked with a horrible company that charged us and blamed us for all kinds of things. Plus, what we were paying for rent was the same as a mortgage payment, so we decided to buy a house. We found an adorable 2 bed, 1 bath with a little bit of land near both of our schools. We put our offer in just 8 hours after the house was posted – and we got it!!
Home loan: $225,000 – 30 year (fixed)
In the fall of 2018, B began his Masters program for the same reasons I did – it was time, paid for itself in a few years, defer loan payments, BUT his cost nearly double my program.
B’s Masters debt: $32,600
In July of 2019, B and I got married and while I knew about his student debt before, now it’s officially my problem too. Although he worked in college, he still had to take out the maximum – hint: do not recommend – cause now we have to pay it all back!
B’s Bachelor’s debt: $37,000
Total debt: $370,200
Oof, that’s a number.
Totaling it all up is scary, but necessary! If you don’t know how much you have, it can be hard to motivate yourself. Plus, we have to keep in mind a few things.
- Houses build equity, so mortgages are not considered “bad debt.”
- Student debt is avoidable, but it’s hard. If you get out the minimum needed, it’s not too bad.
- Don’t break the bank for a car! They depreciate in value as soon as they leave the lot.
- Find a plan for you and tweak as you see fit. Figuring out your budget is the first and most important thing to do to start tackling debt!
- Paying off debt takes time and does not happen immediately, plus life happens.
