Paying off student loan debt can often be just as difficult as earning your degree. According to the Pew Research Center, nearly 1 in 5 households carry student loan debt. That’s nearly double the number of households from 1998. U.S. students on average borrow $27,000 for education, according to the Project on Student Debt, which is more than twice what students borrowed, on average, about 20 years ago.
No matter what debt eliminating strategy you use, giving up a portion of your paycheck to pay off student loan debt takes discipline and oftentimes radical lifestyle changes. Here’s how three couples worked to pay down their student loan debt in record time.
• Understand the Problem: It wasn’t until Deacon Hayes and his wife wrote down their student loan debt on paper that they got serious about paying it off. They credit their strict budgeting and using the debt snowball method (paying down debt starting with the smallest amount and working up) as the reasons why they were able to pay off all of their debt in just 18 months. In addition, they combined cell phone plans, saving $50 per month and sold Hayes’ brand-new car.
• Close the Leaks: Once you understand where your money is going, plug budget leaks and open new income streams. Both tactics are helping Bryan Lovgren and his wife in their plan to tackle nearly $28,000 in loans in just 10 months. They bargain shop for necessity items and have switched to a more vegetable-based diet to lower food costs. More importantly, they have committed to living off one salary, while Lovgren’s wife devotes her entire paychecks to the loan. They have also generated $7,000 to $8,000 by selling things they own through a local classified service.
• Stay Motivated: Statistically, consumers spend less when they use cash over credit cards, plan purchases in advance, automate their savings and keep projected savings goals in mind. Keeping your eye on the prize also helps. To pay off more than $100,000 in student loan debt in five years, Tricia Meyer and her husband made loan payments equivalent to their mortgage payments each month and built that into their necessary household expenses. To make the extra payment, they both took freelance consulting or teaching jobs and Meyer launched a couponing website where she now works full time. Together the couple generated between $10,000 and $15,000 annually in side income.
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If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
