We Ride at Dawn!
There are many great suggestions and tools to use out there to help you come up with a strategy. These are mine.
Step 1: Visual Aid (s)
I am choosing to use a bar chart: listing my loans, total amount I owe, and mark off how much is paid towards it (principle amount). If you’re a visual person, this can help motivate you! I had fun taking my time decorating to make it pleasing to the eye. I also made a check list of my expenses throughout the month in order they are due to help keep track and make sure I paid each month.
Also calendars like Google Calendar can be your best friend! Put when bills are due and your pay days to help you get a map of what pay checks pay for what bills throughout the month. It will be overwhelming in the beginning, but give it some time.
Step 2: Figure out Priorities
Find out which loan is the lowest and which one has the highest interest rate. My strategy is to try to pay off my smallest loan first, so paying the minimum plus whatever extra I have. As soon as that one is paid off, go for the one with the highest interest and ATTACK! Then go for the other ones as you knock down those major ones. As you are paying off these debts, the amount you are saving put towards the other loans to help pay them off faster.
Step 3: Budget
Figure out the amount for bills outside of student loans (rent, electric, internet, phone, etc). There are some great tools out there; one that I am currently using is called mint.com. The great thing about this site is that it sinks up your bank accounts, most loans (doesn’t play well with ECSI). You can set goals, also specifically set budgets on things like food, gas, shopping, etc.
I am also a fan of just taking a certain amount of cash out every paycheck to use for grocery shopping and tithing. Also leave those debit/ credit cards out of your wallet to avoid temptation!
Step 4: Count the Costs
It can feel like you can, consider getting something part time and dedicate that source of income for your loans. The job I do can be very emotionally taxing, so I have been considering getting a job that is easy and different. . . Still in the process of thinking about it.
Step 5: Get Organized!
Bank accounts can be a wonderful tool to help you keep everything in order and help you remember what is due when and how much. For me I have two bank accounts and one savings. I have one bank account for bills and another for extra money to have just in case. . .
Step 6: Have something to look forward too.
It is important that you try to treat yourself every goal you accomplish, like if you pay of this loan or a certain amount you will get/do something fun. Our society encourages impulsivity and entitlement to material possessions, so it takes a lot of mental and emotional awareness to follow-though with this plan. You work hard for your money and this journey can be very daunting and feel limiting at times, so make sure you acknowledge those accomplishments!
Remember,
As you go, you will learn the good and bad habits you have. I have found over the past 6 months so far that there is a flow to this madness. I have made many mistakes and had bumps in the road so far in the process; just give it time to help you get the flow. I have found this process to be refining, learning the bad, impulsive, and wasteful habits I have accumulated over the years. I see this as an opportunity to learn new disciplines and to continue to have a perspective of gratitude for everything my Abba has provided for me.
Debt; noun (dictionary.com)
1. something that is owed or that one is bound to pay to or perform for another.
2. a liability or obligation to pay or render something: My debt to her for advice is not to be discharged easily.
3. the condition of being under such an obligation: His gambling losses put him deeply in debt.
Mistake #1: Went to a Tech school for a liberal arts degree.
Mistake # 2: Took out private loans from different services.
I have recently graduated from Rochester Institute of Technology with a BS in Psychology and a Minor in Criminal Justice, now working full time as a tele-counselor. Now that I have this lovely degree, my time to live as an adult in the real world means paying what has now come due. . . student loans. I currently owe about $100,000. Now having been in a place of paying student loans off for about 6 months now, I have come to feel incredibly discouraged to be in the red, seeing my total balance go down, inches by inches. I have also learned a lot of about self and my tendencies.
One tendency I have identified is being inpatient, seeing no hope in sight for relief, feeling angry with the process and wanting to give up. I find that this not only carries over within this material circumstance, but my emotional reactions to the people and events have happened in my life. We work little by little to pay our debt and work little by little to build relationships with the hope of making big impacts on others to become influencers in others’ life.
A phrase has been helping me find that silver lining is "respect the journey". Currently feeling very discouraged by my ignorant choices of the past, it is easy for me to hold onto the emotional cost of that mistake to the point of allowing it become my identity. Dwelling on: "wow I was so stupid and now I have this burden to bare for the rest of my life" and so on and so forth. . .
I hope to learn that this specific mistake of the past is not considered my identity, but to define myself as someone fearless, who continues to allow myself to be challenged to move forward, learning and embracing new disciplines. I hope to carry this same lesson into the other facets of my life. I can deeply connect the journey I am on as a disciple of Christ regardless of the mistakes I have made and the love God has for me to correct me and teach me to love his discipline.
I can't say that I regret the decision I made to come to Rochester to go to a great school like RIT, but it has cost me a lot of material things. The people I have encountered and ways they have touched my life outweighs the bad. It is important to grasp onto the phrase "Respect the Journey" because our material things are not what defines us, we can't take it with us, so why allow it to control our standard of life? I have decided to use this blog as a motivator and reminder of the joys set before me to pay off my student debt.
