Hi friends! Today I have a debt-free story from my friend, Corinne! Corinne is a 23 year old California native who has been living in Salem, Oregon going on five years. She graduated from Corban University in May 2017 and is currently a high school math teacher. She played collegiate soccer and is now coaching soccer as well as teaching. Corinne is working on paying off some serious debt, and her story is encouraging for everyone, especially those who are single and working at financial freedom!
1. What kind of debt do you have? How much is it? How long have you been paying it off and when will you be debt-free?
I had four government subsidized loans. They totaled about $18,500 when I graduated. I also received the teach grant which totaled about $20,000 over my four years at Corban. If I teach four years in the eight after I graduate at a “high need school” I do not have to pay it back. If I do not complete the required service, I will have to pay back the grant money as well as the high interest that has been accruing since I took the grant. So I plan on teaching those four years!
I began slowly paying my debt off right after I graduated. I was hired by a school district in April of my senior year but because of school contracts, I did not receive my first paycheck from them until late September that year. I worked in the summer between graduating and teaching so I put what I could from those paychecks to my loans but nothing was consistent.
My loans also did not accrue interest until November of that year. I began making consistent monthly payments starting in September 2017 and that plan is to be debt free by December 2018.
2. Why did you decide to pay off your debt?
I don’t like owing anyone money. It was hard watching interest accrue on my loans so I knew I didn’t want to pay more money than I needed too. I saw paying off my debt as a challenge and something I wanted to start fighting right away. I have financial goals in life and knew that paying off debt was the first step.
3. What strategies are you using to pay off your debt? What was the craziest thing you did to get out of debt?
I went through Dave Ramsey’s Financial Peace University while in college and agreed with a lot of his tactics so I have implemented some of those but I also had to adjust things to fit my personal situation. I am first year teacher so paychecks are small but being single I am able to live in a house with two other girls which really cuts downs living expenses.
Our goal was to not pay more than $500 a month on rent and utilities and God provided just the right place for me and my roommates. My goal has been to live off of what I need and the rest of my monthly income goes to paying off my debt. Not everyone can do this but where I currently am in life, I can.
I make a budget every month laying out what expenses I see as a must; “tithing, rent, utilities, food, clothing, emergency fund, etc” and whatever is left goes to my loans. Since I am just taking care of myself I have been able to put a little over 40% of my income towards my loans each month. As of April 2018 I have just under $7,000 left to go. Since graduating I’ve paid off over $10,000.
I put my entire tax refund in to paying off my loans which was super helpful! While I really wanted to put that money other places I knew that I want to pay off my loans before I splurge on a big trip!
Being a teacher, I can work my summers if I need to, so this summer I’ll be teaching summer school which will bring in extra income. I also coach soccer where I teach, so that adds a nice chunk to my paycheck in the fall. Coaching was not something I did for the extra money because I love it so much, but it was nice having that extra cash to put directly towards my loans.
4. How do you stay motivated to pay off debt?
I don’t like the feeling that I owe someone something so that is part of my motivation. Also, since living in Oregon, I found out how much I love exploring and I would like a car that allows me to go wherever I would like to. So I’ve told myself that once I pay off my debt I will start saving for a Subaru. Having the extra money to save towards a car, house, and travel is what is motivating me. Plus, the athlete in me is so excited to defeat debt!
5. What’s the hardest part about getting out of debt?
I absolutely love helping people and caring for others. Whether that is having people over to my house for dinner or giving to friends going on missions trips. Since I have been putting so much money towards my loans I don’t feel like I can give as much as I would like to. In my current budget I have a section called “whatever God places on my heart” and that is used for things like that, but it’s much smaller than I would like. It is a separate section from my monthly church giving. So I’m excited for when I have my debt paid off and can say yes to more giving opportunities.
It’s also hard sometimes watching friends spend money like it grows on trees and saying no when it comes to eating out or growing on lavish trips. I do have a “have fun” section in my budget but like giving, it’s small. One day it will be bigger but for now I’m making the little sacrifices and I know it will be worth it in the end. I have not felt like I have deprived myself of living though.
I took a reunion trip with two of my college best friends to Seattle for a weekend. We are all working on saving money though so we stayed at my friends parents’ house, only ate out once, and did a lot of free stuff around the city. That was such an awesome weekend and between gas and some food, it cost my about $60 for the entire weekend. Those life experiences are ones I won’t pass up, I just have to make wise decisions on how much money I should be saving.
Next month I’m headed to California for my little brothers 10th birthday, and I was not going to miss that! My dad gifted me his airline miles and I will be staying with my parents. I’ll just be picking up the cost of parking at the airport for a couple of days. Another life event that I wasn’t going to pass up.
I have had to say no to trips out of the country or even traveling to certain weddings which is hard but excited for the day I won’t have to.
6. What are your goals once you’re debt-free?
A new car is on the list like I mentioned earlier. I really want to buy a house as well and then save for travel and adventuring trips! Its hard to say what will happen. God has placed it on my heart to have an open home where I can give to people in need. Being debt free will allow me to do this more often!
7. How do you think your life will change by being debt-free?
Pretty much the same as above. I don’t think that too much will change. I will continue to live a frugal life because I think it is important to be good stewards of the money we have been given. I’ll probably travel more but that’s probably it!