snowdrifter Posted March 3, 2018 Share Posted March 3, 2018 I have decided to pay off my loans asap due to debt anxiety and wanting financial freedom. I bought Dave Ramseys book and mostly following his method except that I am putting 20 percent into my ira. I started with 96k 10 months ago and now have 44k. I created a budget. Spending 200 dollars a month on groceries (for 3), cut the cable, drive a 9 year old car. Have a 200 dollar clothing budget for the year. We live off of my fiance's salary of about 50k per year with a 1400/month mortgage. Its caused a lot of stress in our relationship but I am halfway there and trying to push through. Anyone else doing this? Link to comment Share on other sites More sharing options...
Boatswain2PA Posted March 3, 2018 Share Posted March 3, 2018 That's awesome! We are working the baby-steps as well (slightly modified as well). When we started most of our debt was mortgages from multiple investment properties. Took us a year to clean up the student loans, car payments, etc, then we started knocking out the mortgages. In 2017 we paid off our primary house, but still had a mortgage on ONE investment property. Took six months off from paying things off and saved up a huge chunk that we then used to put 50% down on a LARGE piece of land that we will build our forever home on. Felt GREAT being down to one mortgage (that is easily covered by rent), but now that we have 2 mortgages (did 5 year note on the land) I just HATE it! Love the land, but hate the mortgage. Hoping to have it paid off in 12 more months, then save up to build a $300K home cash. Our total debt paid off (including the note on this land) will be almost $600K, without selling anything outright (doing some owner carry financing). Keep tearing into it, believe me it's WORTH IT!!!! Link to comment Share on other sites More sharing options...
ak004 Posted March 3, 2018 Share Posted March 3, 2018 I will be in quite the debt hole once I graduate in July 2019. Somewhere around $300K in student loan debt from undergrad combined with PA school. I had no help from parents, scholarships or grants to pay for school, so I had to pay with it all through loans. No spouse or kids. My plan is to move to somewhere with a very low cost of living (I’m willing to move anywhere), hopefully work in family practice, and throw as much as I can a month at my loans until they’re gone. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
camoman1234 Posted March 3, 2018 Share Posted March 3, 2018 3 hours ago, snowdrifter said: I have decided to pay off my loans asap due to debt anxiety and wanting financial freedom. I bought Dave Ramseys book and mostly following his method except that I am putting 20 percent into my ira. I started with 96k 10 months ago and now have 44k. I created a budget. Spending 200 dollars a month on groceries (for 3), cut the cable, drive a 9 year old car. Have a 200 dollar clothing budget for the year. We live off of my fiance's salary of about 50k per year with a 1400/month mortgage. Its caused a lot of stress in our relationship but I am halfway there and trying to push through. Anyone else doing this? Wow congrats! I am applying for loan repayment as we speak, so hopefully I get it and that would knock 50K off. We cut the cable 7-8 years ago and my wife and I both drive 12 year old cars, but our grocery bill is around 800-1000 per month for the two of us (we eat completely organic, gluten free, etc...), our mortgage is only 1000 per month. She works part time to stay home with the babies, but we seem to not be able to cut our student loans down like that so quickly. We do like Amazon, so I am sure that is where our money is going! :) Link to comment Share on other sites More sharing options...
CAdamsPAC Posted March 3, 2018 Share Posted March 3, 2018 I'm am still trying to wrap my brain around $100K+ debt from PA school! It's been my position that the entire Masters level of PA Programs was driven by the various universities as a cash cow! Yeah I know NPs this, NPs that ,EIEIO......but Graduate Schools are money makers for colleges /universities (take a look at the Sunday New York Times Education Classified) and those departments that enrich the coffers of the school become powerful entities in the world of academia. I don't expect schools to give a hoot about how deep in debt it's graduates may be, but I am appalled by the sheeplike procession to these institutions demanding aspirants become indentured servants to the financial aid officers for a significant number of years. Do I have an answer? No I do not but I do think that voices need to be raised asking "WTH" is going on here? I am a "Gray Haired PA" who recalls graduating 1987 when only 38 PA schools existed and paid somewhere around $10,000. in total for my education. My alma mater is now requiring $100,000. to become a PA! Yes time goes on and everything is more expensive, but a ten times increase in the cost of attending MEDEX??? Sad to say, but the motto for PA Schools should be B.O.H.I.C.A. so the aspiring PA can understand what's in their future!!! Just the view of an Old Guy in the autumn of his career......... Link to comment Share on other sites More sharing options...
JoeM Posted March 3, 2018 Share Posted March 3, 2018 Strong work! I’m graduate with 60k 1.5 years ago. Now down to 12k. Paying 3k per month while maxing our my 403b, Roth IRA and HSA. Budget is uber tight but it’ll be worth it in a few short months. I would be done with them by now but I had a low salary my first year out of school as I did a critical care fellowship. Keep up the good work. Debt is slavery! Link to comment Share on other sites More sharing options...
LonguylandPA Posted March 4, 2018 Share Posted March 4, 2018 lol... 160k debt here... went to public undergrad plus had financial help from govt... still broke Link to comment Share on other sites More sharing options...
JPMiller Posted March 4, 2018 Share Posted March 4, 2018 Graduatedwith 100k in debt. Worked my ass off, lived like a student, and paid it off in a year. Link to comment Share on other sites More sharing options...
SedRate Posted March 4, 2018 Share Posted March 4, 2018 Came out with over 6 figures in debt from a private PA school, even with a grant and taking out only 12k/year for expenses. Put some profits from selling a house toward debt and refinanced loans. I've paid off about 65% so far in just over 3 years, and that's with maxing out 401k, taking vacations, helping out family, a life event, house move with some renovations, newer vehicles, etc. Plan to have the rest paid off in 1-2 years. Then it's on to paying off the cars and house. Link to comment Share on other sites More sharing options...
Randito Posted March 4, 2018 Share Posted March 4, 2018 You folks paying off your loans so quickly is very inspirational. I have been a Mr. Money Mustache reader for quite a while and have been wanting to get out of debt ASAP. I have not sacrificed, especially travel, as much as I could have and have unfortunately fallen into some of the common life circumstances that have prevented a more aggressive payoff (first house purchase, first child, variable employment for my spouse). Non the less, I started at $142k and 4 years later am down to $85k. I think as a family we are now in a good place and I will be able to start throwing about $4-5k a month at loans and hopefully have them paid off in 1.5-2 years. Link to comment Share on other sites More sharing options...
pvdude Posted March 4, 2018 Share Posted March 4, 2018 Look to refinance loans. A lot of smaller banks will give you better rates then sofi. First Republic currently offering 2.6% on 10 year loan. That's as close to free money as you're going to get. Link to comment Share on other sites More sharing options...
HmTwoPA Posted March 5, 2018 Share Posted March 5, 2018 Took night and online school while in the military using TA and paying out of pocket for community college classes. Using my GI bill for PA school now. Will have 10 months left afterwards thinking about getting an MBA just to not waste it. My wife is going through NP school and were paying cash for her program. Well be in our mid 20's have no student loan debt, no car loans, and no credit cards when we graduate (been following Dave Ramsey for a long time as well) Suffered in the beginning to feel the rewards at the end. Sorry this didnt really contribute to the conversation, just wanted to brag. My roommate at my out of town rotation is a 3rd year medical school student with 450k in debt. Thats insane. Link to comment Share on other sites More sharing options...
Boatswain2PA Posted March 5, 2018 Share Posted March 5, 2018 Brag away....you've earned it!! Link to comment Share on other sites More sharing options...
BruceBanner Posted March 5, 2018 Share Posted March 5, 2018 On 3/2/2018 at 10:57 PM, ak004 said: I will be in quite the debt hole once I graduate in July 2019. Somewhere around $300K in student loan debt from undergrad combined with PA school. I had no help from parents, scholarships or grants to pay for school, so I had to pay with it all through loans. No spouse or kids. My plan is to move to somewhere with a very low cost of living (I’m willing to move anywhere), hopefully work in family practice, and throw as much as I can a month at my loans until they’re gone. Oh my goodness gracious....$300k?! Someone training for a professional degree who will essentially be working in public service should never be allowed to acquire that much debt. Just seems criminal to me. I also have high debt, and for better or worse I took the PSLF path. About 7 years left. It was a calculated decision based on my desire to retire early and maximize my investing years, plus the first few years I wasted earlier in my career. To learn from my mistakes though, dont do these things: Defer payoff after graduation Get on an IBR plan Buy a new car or acquire any other form of consumer debt Live in a high COL area Inflate your lifestyle I wouldnt count on the PSLF pathway anymore for current borrowers. Your best bet is to do like others here have done and live very modestly for 3-5 years after graduation. It can be done. If you do like me and defer for a while, then get on an IBR plan waiting for a PSLF job or a "high-paying" job, you'll be much more in the hole than if you just started with aggressive debt payoff from day 1. Link to comment Share on other sites More sharing options...
megscc Posted March 5, 2018 Share Posted March 5, 2018 My husband and I did this after we got married. He teaches the Dave Ramsey curriculum in high school and we cut everything down to the very studs and paid everything off in 9 months. I did not have as much student loan debt as some, as I did have an undergrad scholarship, but I did have over $70,000 in PA school debt and my car and his car. I often thought through the process that I wouldn't make it, but push through. I promise you that when you get to the light at the end of the tunnel, you will be so happy and feel so accomplished. We are about to move into our new house (putting 20% down and getting a 15 year mortgage per Dave's plan) and we are having discussions about what to do with our monthly extra income. It is possible, and you will be better off for it. Congrats on doing this and keep up the great work! Link to comment Share on other sites More sharing options...
ak004 Posted March 5, 2018 Share Posted March 5, 2018 Oh my goodness gracious....$300k?! Someone training for a professional degree who will essentially be working in public service should never be allowed to acquire that much debt. Just seems criminal to me. I also have high debt, and for better or worse I took the PSLF path. About 7 years left. It was a calculated decision based on my desire to retire early and maximize my investing years, plus the first few years I wasted earlier in my career. To learn from my mistakes though, dont do these things: Defer payoff after graduation Get on an IBR plan Buy a new car or acquire any other form of consumer debt Live in a high COL area Inflate your lifestyle I wouldnt count on the PSLF pathway anymore for current borrowers. Your best bet is to do like others here have done and live very modestly for 3-5 years after graduation. It can be done. If you do like me and defer for a while, then get on an IBR plan waiting for a PSLF job or a "high-paying" job, you'll be much more in the hole than if you just started with aggressive debt payoff from day 1. More like $285K (I rounded up). A large chunk of that, more than half, is from undergrad. I chose to go to a private Christian university, which I don’t regret. I plan to move somewhere with a very low cost of living (Iowa, Nebraska, Kansas) and live very frugally until it’s paid off. By my calculations, I think I can get it done in under 10 years. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
camoman1234 Posted March 5, 2018 Share Posted March 5, 2018 1 hour ago, ak004 said: More like $285K (I rounded up). A large chunk of that, more than half, is from undergrad. I chose to go to a private Christian university, which I don’t regret. I plan to move somewhere with a very low cost of living (Iowa, Nebraska, Kansas) and live very frugally until it’s paid off. By my calculations, I think I can get it done in under 10 years. Sent from my iPhone using Tapatalk 10 years is a loooooooooooooooooooong time. Living frugally while working 60 hours a week (2 jobs) is what you will have to be doing. As I live in a very low COL, but the pay is low as well. I would not change my private Christian education either, but I do regret everyday having to suffer with no vacation, my wife and I driving 12 year old cars, no extra money, living pay check by pay check. We have been doing it for about 4 years now and it blows. All my friends have boats, new cars, etc. I am NOT that type of person that cares about my material possessions, but my point is that they all have extra money to blow on top of saving money monthly. Sounds good on paper (10 years and low COL), but in the real world it sucks. I am applying for low repayment as we speak, fingers crossed. Link to comment Share on other sites More sharing options...
ak004 Posted March 5, 2018 Share Posted March 5, 2018 10 years is a loooooooooooooooooooong time. Living frugally while working 60 hours a week (2 jobs) is what you will have to be doing. As I live in a very low COL, but the pay is low as well. I would not change my private Christian education either, but I do regret everyday having to suffer with no vacation, my wife and I driving 12 year old cars, no extra money, living pay check by pay check. We have been doing it for about 4 years now and it blows. All my friends have boats, new cars, etc. I am NOT that type of person that cares about my material possessions, but my point is that they all have extra money to blow on top of saving money monthly. Sounds good on paper (10 years and low COL), but in the real world it sucks. I am applying for low repayment as we speak, fingers crossed. Don’t get me wrong, I’m under no illusions that paying my loans back will be easy or fun. But I’ve dug my hole and I know I need to buckle down to pay them back. From my calculations, I think I I can pay it back in 7-8 years, maybe less if I do it right. After a few years in primary care, I may move on to locums or something like that, as I know there’s more money to be made. I have no spouse or kids, so hopefully it won’t be too terribly painful. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Boatswain2PA Posted March 6, 2018 Share Posted March 6, 2018 12 hours ago, ak004 said: More like $285K (I rounded up). A large chunk of that, more than half, is from undergrad. I chose to go to a private Christian university, which I don’t regret. I plan to move somewhere with a very low cost of living (Iowa, Nebraska, Kansas) and live very frugally until it’s paid off. By my calculations, I think I can get it done in under 10 years. 5 hours ago, ak004 said: From my calculations, I think I I can pay it back in 7-8 years, maybe less if I do it right. Why in the world would you want to carry that monkey for 10 years? Or even 7-8? Work like mad! Make $200k a year. Pay $70k in taxes, $80-100K toward debt, and live off $30-50k/year. Have it gone in 3-4 years! Link to comment Share on other sites More sharing options...
HMtoPA Posted March 6, 2018 Share Posted March 6, 2018 I still don't understand how anyone can feed 3 people for $200/month. Link to comment Share on other sites More sharing options...
BruceBanner Posted March 6, 2018 Share Posted March 6, 2018 11 minutes ago, HMtoPA said: I still don't understand how anyone can feed 3 people for $200/month. Right? 3 very skinny people eating pasta, beans and rice... 15 hours ago, ak004 said: Don’t get me wrong, I’m under no illusions that paying my loans back will be easy or fun. But I’ve dug my hole and I know I need to buckle down to pay them back. From my calculations, I think I I can pay it back in 7-8 years, maybe less if I do it right. After a few years in primary care, I may move on to locums or something like that, as I know there’s more money to be made. I have no spouse or kids, so hopefully it won’t be too terribly painful. Sent from my iPhone using Tapatalk No spouse or kids.....yet. You plan on staying single for 10 years? Lol. I remember when I graduated I said I was going to pay my loans off in 5 years. Part of that is on me for not implementing a realistic gameplan and sticking to it, but I can also tell you it often doesn't pan out in reality the way you expect it to on paper. You cant find a job, jobs pay less than you want, your job sucks and is eating you alive, you need a new vehicle, or you find out Iowa/Kansas/Nebraska is not conducive to good mental/emotional health for a single person. Again not trying to disparage you just passing on lessons learned. Since you are so early in the game, I'd look for something guaranteed like federal loan repayment programs, or even the military. That way there is a clear incentive and a defined endpoint. You need a boost. Link to comment Share on other sites More sharing options...
ak004 Posted March 6, 2018 Share Posted March 6, 2018 Why in the world would you want to carry that monkey for 10 years? Or even 7-8? Work like mad! Make $200k a year. Pay $70k in taxes, $80-100K toward debt, and live off $30-50k/year. Have it gone in 3-4 years!If I could make that kind of money as a new grad, and pay off my loans in less time, that would be amazing. My mindset is more of the “expect and plan for the worst, hope for the best” type, hence the extended terms in paying the money backSent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
ak004 Posted March 6, 2018 Share Posted March 6, 2018 No spouse or kids.....yet. You plan on staying single for 10 years? Lol. I remember when I graduated I said I was going to pay my loans off in 5 years. Part of that is on me for not implementing a realistic gameplan and sticking to it, but I can also tell you it often doesn't pan out in reality the way you expect it to on paper. You cant find a job, jobs pay less than you want, your job sucks and is eating you alive, you need a new vehicle, or you find out Iowa/Kansas/Nebraska is not conducive to good mental/emotional health for a single person. Again not trying to disparage you just passing on lessons learned. Since you are so early in the game, I'd look for something guaranteed like federal loan repayment programs, or even the military. That way there is a clear incentive and a defined endpoint. You need a boost.I definitely appreciate the advice. I’ve considered the military, but I’m really not cut out for it, and I don’t think people should join purely for the monetary incentives. It should be a calling. I hope to work somewhere I can get loan repayment, but I’m not counting on it as so much of the federal budget is up in the air, and those programs are never a guarantee. Who knows if I’ll stay single for 10 years or not (I hope not). But if I do meet a future husband, I sure hope he doesn’t expect to live solely off my income! Lol 2 incomes would be better than 1. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
greenmood Posted March 6, 2018 Share Posted March 6, 2018 Good for you! We're also doing a modified Dave Ramsey plan (due to the length of expected pay off, we are keeping more than 1K in emergency funds) and have signed up for PSLF as a backup in case something happens. Good luck! Stay focused! Link to comment Share on other sites More sharing options...
Iain1028 Posted March 14, 2018 Share Posted March 14, 2018 Sometimes I think getting mani and pedicures Q4 weeks instead of Q3 weeks would save me a lot of money? Link to comment Share on other sites More sharing options...
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