How to start climbing the mountain.. your student loan debt
We all have goals and dreams in life of where we’d like to live and perhaps even where’ we’d like to raise a family. Right now, my wife, daughter, wheaten terrier and I live a in a 2 bedroom 2 bath condo. We love our place and how it close it is to the park and downtown.
Ever since our daughter came along, the conversation more frequently starts about how “we want a bigger house, a backyard, a pool, a grill for the summer” etc..
But then reality hits and we think .. HOW WILL WE EVER SAVE ENOUGH to do that.
My wife and I both have decent jobs and enjoy what we do. I am a product manager and wife is a 2ndgrade teacher. We make enough to go out to eat once in awhile , afford our never ending dog vet visits, and the occasional trip. However, these tendencies don’t leave a lot of room for saving after monthly paying bills, the mortgage and of course our student loan debt.
It hurts to even think about, we hate looking at it and for many years we just paid our monthly payment without doing much else.
However, we finally realized that we are going to need more money available if we are ever gong to save for house or have more children. It was time to take action…So my wife and I sat down and put a budget together to limit how much money would spend a month (our blow money). Then we took at our loans and asked, “How can we pay these balances FASTER.”
- We consolidated several federal loans into a lower interest rate and single payment
- We applied for a private loan via Social Finance (SOFI), to get a better interest rate on the private loans that ranged from 7%-11%.. Now our highest interest rate is 6%
- We paid more towards higher interest loans that we wanted to pay off first
Now we look out our loan balance every month and watch it go down. Instead of not looking and not making any progress.
Now that bigger house with a backyard doesn’t feel as out of reach….