Jane from LiveRichandFree.com joins us on today’s show to share how she paid off over $135,000 in student loans. She racked up most of the student loans while in graduate school. Jane got the desire to pay off her debt by having an uncomfortable feeling about having so much student loans. After graduating, she knew she had to get serious and knock out her loans as quickly as possible.
One of the ways Jane kept motivated throughout the process was to remind herself that every time she was spending money, she was essentially borrowing at 6.5% (her student loan's interest rate) to make the purchase. This kept her from overspending and allowed her to continue to make extra principal payments even when the balance was still big.
Now that Jane has no debt, the mental stress is gone and she is enjoying saving money and maxing out her IRA each year. One of her goals now is to start earning some residual income so she is not trading her time for money.
“One of the easiest ways to not have to pay back $100,000 is to not take it out in the first place.” ~ Jane
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