<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > First time

First time

September 8th, 2010 at 08:47 pm

I once asked a financial advisor for his opinion of my financial situation, he responded after a long pause "well, it doesn't look good does it?"

So here it is:
I have $120k in student loans
I make $75k a year
I have no other debts - cc, etc.
I have 7k in savings
I have 4k in a 401k
I live in an expensive area and cohabitate with my bf
I don't own a car

Right now my student loans are killing me. The interest rates vary from 4 to 7.5%. I have stretched some over 25 years and opted for graduated repayment for others. I am over the salary threshold and can't take any interest as a tax deduction.

About two months ago I started to live on a budget. So I have gone from buying coffee, lunch, and snacks everyday to bringing everything from home. I used a special discount program to reduce the price of my cell plan. I am not shopping unless its necessary,I replace clothes only when something gets worn or stained.

I don't want to deal with these loans for the rest of my life. But I may not be able to buy a home or switch jobs until these things are gone. Any ideas on what else to do would be much appreciated!

Posted in Budgeting, Debt, Education, Personal Finance | 4 Comments »

4 Responses to “First time”

  1. Homebody Says:
    September 8th, 2010 at 11:36 pm 1283988990
    1283988990

    Welcome! First off post your budget so we can pick it apart, nicely with suggestions of course. You have taken a good first step. Eating out is the biggest unnecessary expense I can think of, besides hair, manis, pedis, etc in my humble opinion. Is BF on board? Do you keep your money separate? The only thing I would immediately suggest is cash only, which is making me rethink every purchase.

  2. Looking Forward Says:
    September 9th, 2010 at 03:46 am 1284003962
    1284003962

    Welcome!
    Can you "refi" any of your student loans?
    And you're just getting your budget fine-tuned if you've only been doing it for two months. I also agree w/ Homebody; cash only spending might help.

  3. whitestripe Says:
    September 9th, 2010 at 07:45 am 1284018353
    1284018353

    I think it's great you don't have any other debt, for starters. Keep track of your money and see where you can cut out expenses. Scrimping and saving now will allow you to pay off your loans sooner. Welcome to the site!

  4. Jane Says:
    September 9th, 2010 at 03:47 pm 1284047234
    1284047234

    Another option, Dave Ramsay style, would be to get a part time job and put all of that money toward paying down the debt. If you have the time and willingness to really hustle for a year or two now, it could give you more flexibility later to do the things you mentioned, like buy a house or switch jobs. Without knowing your field I don't know if you could moonlight or consult in that area, but there are always other options that almost anybody can do, such as tutoring for the SATs/students struggling in school, babysitting, working as a store clerk a couple nights a week, etc. I have worked the 6-11 shift at a hotel reception desk 3 nights a week as a second job after my 9-5, and it wasn't bad. 15 hrs X $10/hr X 4 weeks = $600 extra dollars a month (before tax) for reducing debt. Good luck!

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]