Financially speaking, I have things "under control". I'm able to pay my bills in full each month, make the minimum payments on my debts, and even squirrel away some money into a savings account and emergency fund. However....
I also have quite a chunk of debt. After four years in college and two more in graduate school (both times pursuing vague liberal arts degrees, mind you) I accrued just under $40,000 in student loans. Moving from Southeastern Ohio to Austin, TX after grad school and job hunting while unemployed for three months added another $5,000 in credit card debt. Finally, I bought an $11,000 car with just $1,000 as a down payment, financing the rest.
I naively reasoned that debt is a part of life, that as long as I can pay the bills and save some money for the future, I would be just fine. But now, I'm not satisfied with "just fine". I want the financial freedom to travel the world, buy a house, get married, have a family and retire without a crushing debt load. And what's more, I want to do this all on a modest teacher's salary! I must get serious about erasing my debt if I truly want to pursue my life's dreams and passions.
For our information (and to keep me accountable), here is the breakdown of what I currently owe:
*Student loans (undergraduate and graduate): $38,912
*Loan (acquired to pay off remaining credit card debt): $2, 852.12
*Car loan: $ 8, 245.51
The grand total (drumroll, please): $50,009.53
Yikes. While I'm embarrassed to admit that I have so much debt, there's something cathartic about knowing exactly what I owe, and then taking concrete steps to conquer my debt load.
At the end of each month (starting in February), I will chronicle how much I have paid toward each loan, and my total remaining debt balance. I hope you will stick with me; I'm going to need both advice and encouragement.
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