HOW I paid off $25,000 of student loan debt in 1 year
I wrote my monthly money checkin series last year about paying off my student loans. Today I’d like to talk more in depth about the steps I took to pay off my debt.
Step one was getting a full time job with health benefits and a steady paycheck. Prior to my current job I was freelancing full time. My yearly income was consistent but my month to month pay fluctuated making it harder to plan. With obamacare, costs fluctuated from year to year.
Step two was good fortune. I worked full time job number one for 6 months then switched to a different position in the same company. I earned $1,000 more per month in the switch.
Step three: family help. I lived rent free with family so I was able to throw about 50% of my gross income to debt. That works out to almost 75% of my take home pay after retirement savings, taxes, ect.
Step four is side hustles working for my previous freelance clients. Last year I worked my side hustles a few days per month to earn more money to throw at my debt. It was physically grueling trying to juggle both jobs. I have so much respect for people who can maintain doing this.
Step five was good luck. I didn’t have any major expenses come up in the year I was paying off my student loans. That’s not something you can plan but it was a huge benefit.
