When you’re paying off debt like a madman, the week-to-week motivation is draining. When you have a longer term goal it feels so far away…because it is. You see friends buying houses, cars, vacations, and there are definite moments of jealousy. I remind myself that I made the decision to go to college and grad school, and I know these decisions are a long term investment…yet I still feel bad like I’m behind or something. First world problems, right? Yep, they sure are. This is why it is important to quit the pity party for one and look backwards to move forwards. I spent a moment to look back at the past 12 months, and it is absolutely bonkers how much progress I have made. Re-motivated. IT IS PAYING OFF!
In 2015, I have paid a total of $31,392.61 towards my student loan debt. Boom. About 16% of this ($5,121.88) was interest, but that is expected because the amount 12 months ago was just under $100k with 6.125% interest. Am I bragging? Yes. I earned this and it feels great. In May, I paid off my second-to-last student loan so now I only have one payment which is the big consolidated loan that had a principal amount around $80,000.
The average class of ’15 college grad (who took out student loans) has about $35,000 of school debt. So if I were average, I would have just about paid my debt off, but I’m above average…which isn’t so awesome in this case. I made some poor financial choices and I am learning from them big time. When looking back to the time around 2011/12, my financial life really felt like it was out of control…15 payments every month including rent, cable/internet, cell phone, car/renter’s insurance, electric, 6 student loan payments, 2 credit cards, Netflix, and a gym membership. Nearly $6k in credit card debt on top of all my student loan debt.
Fast forward to the end of 2015 and here I am with just over $65k left to pay off. I’ve paid off just a little more than half since I finished grad school. I am really proud of the financial work I have done this year. Not to mention we had a wedding and honeymoon in there that we cash flowed. For those of you that want to pay off some debt…you can absolutely do it. I kicked some major debt butt this past year, and my wife and I are scheming up ways to try and pay off even more in 2016.
It feels good to reflect on 2015 for a lot of reasons, but I’m taking a moment to celebrate my financial progress. Cheers to you for all you’ve learned in 2015 and here’s to a great start to chapter 2016!
P.S. The wonderful people at NerdWallet included some advice I gave for recent grads in a recent blog. Check it out and be sure to follow their blogs!