Debt repayment
None of this is expert advice. It's what people worked out for themselves, usually the hard way — what actually helped, and what they'd tell someone standing where you are. Take what fits and leave the rest.
If you only read a few
Use the debt avalanche method: double payments on the loan with the highest interest rate while paying minimums on others, then roll that amount to the next highest rate when paid off.
Paying the highest interest first saves the most money.
15 people, independently
Keep a rainy-day fund for job loss or repairs instead of using all savings for loans.
One person lost their savings to loans and had no buffer when work slowed down.
one person who lived it
Direct all extra income toward student loans to pay them off faster.
Frees up future decision-making by removing debt burden.
one person who lived it
- Pay student loans while still in school to reduce long-term debt accumulation.1
Knock out high-interest student loans first.
High interest rates were a killer.
one person who lived it
Seek advice from a financial advisor and set specific future goals once you are debt-free.
Time rolls fast.
one person who lived it
Pay off all new credit card purchases immediately when the monthly bill arrives.
One person reported doing this for two years resulted in no new credit going on the card.
one person who lived it
If you cannot afford federal student loan payments, defer them or place them on forbearance to avoid late fees and credit score damage.
Prevents negative impact on credit score and avoids late fees.
- Applies to Federal loans.
one person who lived it
Avoid lifestyle creep by saving money instead of spending it once debt is paid off.
Having savings helps you feel in control.
one person who lived it
Seek work abroad contracts that stipulate free housing, utilities, and internet to reduce living costs.
One person found that even with a low salary of 24k, the value of not paying for these essentials made their effective income much higher.
one person who lived it
24 more on this
Handle most vehicle repairs and routine upkeep yourself to reduce costs.
- Ask friends for help with tasks you cannot do, potentially offering a home-cooked meal in exchange.
3 people, independently
Pay off any loan with an interest rate above 6% as soon as possible.
High interest loans cause significant accrued interest every year.
one person who lived it
Consider trade schools instead of traditional college if you do not learn well in a textbook setting.
Skilled tradespeople are hard to find, leading to high pay scales, and this path suits those who struggle with textbook learning.
one person who lived it
Buy things with money you have and avoid borrowing as much as possible.
3 people, independently
Double-check with the lender to ensure the loan is officially cleared after final payment.
Banks may fail to clear the loan, resulting in late charges and interest.
one person who lived it
Live at home and commute to school to avoid taking out loans for housing and lifestyle expenses.
Avoids using loan money for non-essential items like clothes or fun.
one person who lived it
Put every extra cent toward loans by overpaying each month to save on interest.
Overpaying saves money on interest charges.
one person who lived it
Eat repetitive simple meals like eggs for breakfast and various sandwiches for lunch or dinner.
It helps save money and keeps groceries predictable.
one person who lived it
Use installment payment plans for tuition each semester to avoid taking out student loans.
Allows management of costs through cutting unnecessary expenses rather than borrowing.
- Requires cutting unnecessary subscriptions, social outings, and clothing purchases.
one person who lived it
Redirect former debt payments into savings or investments once debt is eliminated.
The money grows quickly when it is no longer used for debt payments.
2 people, independently
Stop non-essential spending habits like dining out, movies, and smoking, and direct all saved money toward debt repayment.
One person reported this helped them become the first in their family and friend circle to become debt free.
one person who lived it
Focus on tax-advantaged savings in this order: 401(k) to match, max IRA, max HSA, then max 401(k).
one person who lived it
Create a visual tracker, such as coloring blocks or drawing swords, to see progress and maintain motivation.
It visually shows progress and provides satisfaction similar to buying an item.
2 people, independently
Check if you qualify for Public Service Loan Forgiveness (PSLF).
- Some people fall into loopholes and do not qualify.
one person who lived it
Track every penny spent in a budget spreadsheet on your phone to modify spending habits and understand where money goes.
It provides an overview of finances and can induce guilt for non-essential spending.
one person who lived it
Write things down on paper to help hold yourself accountable.
It helps tremendously with accountability.
one person who lived it
If facing desperate times, focus on paying off debts that cannot be repossessed over those that can.
Lenders can repossess assets like cars but cannot repossess your earning capacity.
one person who lived it
Join online communities with peers at a similar financial starting point rather than groups where members are vastly more successful.
It allows you to learn and feel reinvigorated without being discouraged.
one person who lived it
If your career is unstable, focus on building a cash safety cushion over paying extra on loan principal.
The interest difference acts as insurance against unemployment risks.
one person who lived it
Work part-time during school to save for personal expenses like food and transportation, helping to avoid additional debt.
Small lifestyle savings make a significant difference in debt avoidance.
one person who lived it
Keep paying a consistent amount to set a history of payment before calling again to renegotiate terms or rehabilitate loans.
One person's experience with loan rehabilitation was that servicers needed a history of them behaving for a while.
one person who lived it
Pay bills immediately upon receiving income to know exactly what discretionary money remains.
It clarifies how much money is left to spend.
one person who lived it
Make consistent, on-time payments to build credit history rather than making sporadic large lump-sum payments.
Credit reporting favors consistency over variable amounts.
one person who lived it
Focus on loans with higher interest rates and lower balances first.
one person who lived it