Paying Off Your Student Loans in A Year!
Some #FrugalSucess Stories are not about how much money you saved, but rather how you smartly used your saved money to stay ahead. Paying off your student loans is one of the major accomplishments that will relieve you of so many financial burdens and stresses. This is a smart place to put your money and we’re here to talk about a success story in finishing up student loans.
Today, we take a look at Kristin Wong, who writes for Get Rich Slowly. Her student loans amounted to a fourth of my total, but the trick is she paid it off in only a year! (I – on the other hand – had about $48,000 in student loans and only managed to pay it off after 10 years). So, how did Kristen do it? You can read her full story on Get Rick Slowly, but here’s the summary:
Date of Kristen’s Graduation: December 2005
Amount Owed: $12,000
Type of Loans: Private loan with 8% interest rate
Key Steps (including some sacrifices and fights along the way with her parents):
- Do not take travel vacations outside the country
- Focus on paying off the loans and put all (or most) of your extra money towards the loans
- Pay attention that the payments get applied to the principle as much as possible
- Move in with your parents to save on rent
If you are looking to pay off your student loans, take note from Kristen’s experience and tips! If you have any of your own, feel free to share them in the comments so we can all learn.