Something’s. Gotta. Give! [$130,053]

Student Loan Update. Follow my journey out of six figure student loan debt to better money habits, a higher net worth and financial freedom. Having six figure debt can be really depressing. The thing is you pay and pay and pay only to see microscopic decreases in your total balance.

That is why when you have as much student loan debt as I do you have to trick yourself into thinking paying back is fun!

You create little games and invent strategies to help you pay your loans faster. Trust me, it is the only way to stay motivated.

I am going to be documenting all of the games and strategies I try here (under the category “debt free 2022”) and hopefully they will help at least one other person pay off their loans faster, stay motivated, or at least be entertained by my journey to debt freedom.

You can expect student loan updates every other month versus monthly because I need to feel like I’m making some kind of progress when I write these updates…again, it’s a motivation thing.

Honestly at this stage of my repayment the majority of my monthly payments go to interest so month-to-month I don’t feel like I’m making any progress at all.

I take comfort in knowing that there will be those months when I get unexpected windfalls that I will throw at my debt so fast that it’s not going to know what hit it!

Student Loan Update

Student Loan 1 – $9,700.00 @ 0%

Student Loan 2 – $49,823.40 @ 5.875%

Student Loan 3 – $70,530.30 @ 5.875%

Total Student Loan Debt: $130,053.70

Last Update: $130,782.00

Difference: -$728.30

My Thoughts

As you can see, there isn’t much progress to report from the last update. Which leads me to my original thought…something’s gotta give!

It is way too early in my repayment journey for me to get discouraged so right now I’m in fight mode.

Fight mode (which I just made up) is when you simply refuse to lose and you are determined to do whatever it takes to accomplish your goal.

One strategy that I recently implemented was opening up a credit card account (the Barclaycard Ring MasterCard) with a 0% interest rate and 0% balance transfer fee for 15 months.

I transferred Student Loan 1 over to that card so now every dollar I pay on Student Loan 1 will go to the principal balance (right now interest is my biggest obstacle).

My initial plan was to knock Student Loan 1 out in a few months and then start tackling Loans 2 and 3 (snowball style) but now that I have a 0% interest rate on Loan 1 I may modify that plan.

I will also be getting a salary increase at work in the next month so that entire increase will be going towards my student loan debt. I look forward to having a much better status update in October.

Stay Tuned

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Where are you in your debt freedom journey? Have you used any interesting strategies? Please share in the comment section.