I finished college just over 2 years ago, leaving me with about $57,800 in student loans and credit card debt. Today, I made my final payment and I’m debt free!
Right now, I’ve got about $200 to my name, but it feels like I’ve hit the jackpot. For anyone still on this journey, you can get there too!
To everyone asking how I managed, I took the hardest route I could find.
For 2.5 years, I stuck to a strict budget, only spending on absolute necessities. It was tough—I had to say no to friends’ vacation plans, skip dinners and drinks, and miss out on so much more.
I didn’t want this debt hanging over my head for years, so I powered through it. This approach isn’t for everyone, but it’s what worked for me.
Exactly! I had an income of $26k a year but managed to save $10k by being super strict. No eating out, no car—just walked everywhere, even to work, and turned vegetarian. All while paying $915/month rent.
My taxes were around $3k, but I’d need to check. I got some back at the end of the year.
Phone was $30/month. Rent was $915/month. Groceries were about $28 a week, so $114 a month. Electricity was $20/month. Water, gas, and trash were included in my rent. Miscellaneous stuff like toothpaste or shampoo was around $20-$30 a month.
All in all, I saved roughly $10k a year, give or take $1k.
What are your other bills? That’s about 50% of your take-home pay over those 2.5 years, not including interest. Rent, car payments, and insurance would’ve taken up almost your entire salary.
I’m 25, working on paying off $30k. It’s been really tough and has taken a toll on my mental health. But I’m starting to see a little bit of light at the end of the tunnel. Your story gave me some hope, so thank you!