It started with a sandwich of financial instability. College twice, scholarships that were decreased junior year, and jobs that paid minimum wage. The students loans needed to be paid but I didn’t know how I would eat, pay rent, and decrease my indebtedness.
Around the age of 22, I had a dream. I walked to the closet in the back of my apartment and inside the walls and shelves, I found thousands of dollars stuffed into the crevices. “Wow”, I thought, “I’m so glad I know what to do now.” That was followed by the realization that this must of course be drug money. I had an ethical dilemma for a minute about whether I should use drug money to pay my loans. I got over that dilemma quick enough to wake up and realize it was a dream. A really weird but hopeful dream.
Praise the Lord. I’ve learned a lot and made a great deal of progress. The mountain is significantly smaller. I’m still gathering strategies and some have worked better at different times. Some of these I learned looking back in the rearview mirror. A lot of these, I’m writing down to remind myself to continue practicing them. Here’s some of what I have so far.
1) I learned to identify my debts. How much are they? How much are the interest rates? Make realistic goals. “How do you eat an elephant?” my mom used to ask. One bite at a time.
2) Learn the terms related to your loans. If you are able to, pay at least the interest on your loans while you are still in school to avoid capitalization.
3) Make the monthly payments when you graduate.
Any additional payments --> pay by group rather than by account so that you can pay to the loan group with the higher interest rate.
4) Any additional tax returns/stimulus checks/gifts you might receive, plan to put the majority of them towards your debt.
5) Make choices that will allow you to pay more each month. Live with roommates. If that is not an option, here are some additional ideas. In the winter, you could leave the heat off and use lots of blankets. Eat hot foods. One winter, I cooked some rice and carried it around my apartment for a while because it was so cold. In the summer, save baking for the evening hours. Use your freezer for homemade popsicles.
Buy groceries from the store rather than eating out all the time. Use coupons. Find out what your staples are and buy them in bulk. Buy meat when it’s on sale and freeze it. Take lunch to work rather than buying it. Drink water whenever you can, rather than a beverage that costs extra. When you buy juice, pour half the bottle into another container and fill the rest of both containers with water. That way you are consuming less sugar and you have 2x the juice. When you do go out to eat, enjoy the experience but also consider eating a less expensive dessert at home or go out for dessert only.
Make gifts or use your time as a gift. Get furniture and clothes secondhand. Consider gardening as a hobby. Even if you live in an apartment some cities have community gardens where you can have a small plot. If/when you choose to splurge on a trip, plan it well in advance to give yourself time to look forward to it. Stay in an inexpensive airbnb or with friends/family rather than a hotel when traveling.
6) Given a choice between a job with good health benefits (medical/dental/vision insurance) or not, I advise the job with the benefits. They add up to a lot of savings. In the midst of paying debt, you need to be able to do the basics to take care of yourself. I tried a job that did not provide medical insurance for almost a year. I figured I would just purchase an short-term high deductible plan on the side. Unfortunately, those plans frequently label any illnesses/injuries that you encounter as preexisting conditions and pay nothing. You can’t fully predict medical needs. They can add up and be a setback. So my advice is to make decent medical insurance a priority.
7) If a dentist suggests a lot of dental work consider a few questions. Is this my first time at this dentist? Is it typical for me to need this much dental work? Have I made any lifestyle choices that might lead to needing additional work done? Am I eating more sugar than usual? Don’t be afraid to get a second opinion. Especially if they are trying to put you on a payment plan. To get real personal: brush your teeth twice a day and floss them each day as well. The daily habits matter.
8) Dye your own hair. It might seem stressful at first but after a while, it’s a big savings. IF it turns out that’s not something that is going to work out for you, no worries cause it’ll grow back.
9) Sell things you don’t need. Consider driving old cars. Five years ago, I traded in the ‘98 Jeep (that I had bought off craigslist) that ran on premium fuel for a ‘98 SUV that runs on regular fuel. Both of them were quirky, but they both became my dream cars. It was sad to make a switch but I haven’t regretted it.
10) Curveballs are going to come. Keep the good habits and adjust accordingly.
11) Remember that Jesus paid our greatest debt with His life. Play your favorite song whenever you make a payment. Watch Confessions of A Shopaholic for Inspiration. Pray for strength to keep on keepin on.
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