How much debt have you paid off?

[pezdispenser]

There are a lot of threads on crazy high student loans that people are getting into, but how about a thread on how much debt people have already paid off? It can include any debt, not just student loans. And please provide some tips on how you did it.

For me:
$51,000 student loans
$25,000 car loan
$205,000 mortgage debt, but still $105k to go
$0 never had any credit card debt
=======
$281,000

My tips:
Learn as much as you can about personal finance, budgeting, how to do your taxes, how to invest.

Work during school and live frugally. No, my parents did not pay anything for my pharmacy school, I went to a private school and I did not live at home. But I was able to keep my student loans down by working lots of hours as an intern and living very frugally.

This may be a bit controversial, but I've always been on the lookout for good and reasonably safe investment opportunities, and will put money into them even while I still have all that debt. Then usually at least 1 year down the road, I will sell those investments and use the principal and profits to pay down the debt. For example,

- After the great recession when the S&P 500 hit bottom around 680, from 2009 onwards stock valuations were ridiculously cheap. So after paying my bills with each paycheck I was piling whatever was leftover into index funds. Then after 1 year I would sell and use that money to pay off debt. Because the purchases were staggered with each paycheck, the sales were too, so it was like a continuous stream of money delayed by one year with around 20% profit added on top, which easily beat the interest I was paying on my loans.

- I would do a similar thing with my company ESPP which has a 10% discount so that lowers your risk and increases your chances of beating your loan interest.

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[sosoo]

what year did you graduate?

i live frugally but i also gave a lot of money away to people in third world country, so that was a mistake.

i been paying these since 2011.
$140,000 student loan, with $55,000 remaining.
$17,000 car, with $3,000 remaining.

last week i picked up a home mortgage $190,000. but when i sell, i'll get that back so i wont count it as debt.

 

[Gombrich12]

I'd guess with interest included I've probably made a little over $200,000 in payments towards various debts. It's sick to think about it, but I will say it has made me wary of how I spend my money.

 

[BestDoctorEver]

It is good to see that @sosoo and @pezdispenser did not go crazy in purchasing home that worth 4 times of their salaries (I am assuming you earn 1o0k/year). For some reason, many think having a big house a road to happiness. It is not-- it just brings bills and headaches. Good job guys/gals for keeping your debt in control. I hope I can do the same after I am done with med school and residency...

 

[BenJammin]

Debt free.

 

[xiphoid2010]

Student loans: Wifie and I graduated with $230k total. Now paid off. Interest paid ~$30k.
Furniture: $8k, 0% interest for 12 month. Paid off at end of the 12 months.
Appliances: ~$5k, paid off.
Mortgage: $220k @3.5% x 30 yrs. Paid maybe $9k so far? Will drag it out to 30 yrs since it's basically 0% interest after tax deduction and inflation. House value supposedly is up >20%, if Trulia and tax assesor are to be believed.
Car loan 1: $15k @2.99% x 5 yrs. Paid off $8k so far. Again no rush due to the interest rate.
Car loan 2: will be taking out $40k to replace my dying honda, approved @2.36% x 5 yr, who loan money at these rate anyway!? Lol.
Credit card: always been $0 debt. Charge everything and profit 2% cashback every month. Loaning money to me is just not a good deal for the lender.

 

[pezdispenser]

what year did you graduate?

Whoops forgot to put that. 2007.

Well this is great. I see several pharmacists so far have shown that it is possible to pay off hundreds of thousands of dollars in debt within a few years.

Any more tips and advice that you'd like to give? I suppose it's just like what Dave Ramsey says in that you have to become passionate about paying off debt and attack it with intensity.

 

[DrWrong]

Graduated in 2012 and completed a 1 year residency afterwards. Right after residency, during which time the loans were in forbearance, I started working w/ a salary just over 6 figures. Here lately, I've been spending a ton of extra money (gf, toys, etc.)

Student Loans: $14,147.42 (~50K remaining)
Car Loan: $3,000 (Paid off)
Bought $2,500 worth of electronics (Paid off)
Bought $2,000 worth of furniture (Paid off)
Bought $2,000 puppy/dog (Paid off)
Credit card: always been $0 debt. Charge everything and profit 1-3% cashback every month.

Also have about $30,000 in the bank to go towards student loans when I decide to part with the money.

Want to keep the money fluid currently. My method has been to work a crap ton of extra shifts and not contribute to 401K until I have my loans paid off. I just got a 4% raise which I WILL contribute to my 401K (4% is my company match).

When I say work a ton of extra shifts, I mean a TON. In the 6 months after residency, I managed to make 15K in extra shifts.

 

[BMBiology]

You should live your life to the fullest. You only live once right? Don't worry about the debt. You have 20-25 years to pay it off so why even think about it?


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[Jibby321]

You should live your life to the fullest. You only live once right? Don't worry about the debt. You have 20-25 years to pay it off so why even think about it?


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#YOLO

 

[BMBiology]

By paying off my student loans over a 20 year period, some people might say I will be paying a lot of interest. My response to that is this, so what? I am young. I am fertile. I need to live it up while I still can!

The government is rich. The people are generous. Sallie Mae is a good friend.



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[Momus]

Taking on ANY debt = living nice now, and living poor later. Eventually, you have to repay it (classic debt cycle - spend now, pay later i.e., living poor later).

I like it the other way around. Living poor now (saving), living nice later.

 

[fauxden]

what year did you graduate?

i live frugally but i also gave a lot of money away to people in third world country, so that was a mistake.

i been paying these since 2011.
$140,000 student loan, with $55,000 remaining.
$17,000 car, with $3,000 remaining.

last week i picked up a home mortgage $190,000. but when i sell, i'll get that back so i wont count it as debt.

Prince of Nigeria email you also?

 

[Jibby321]

Prince of Nigeria email you also?

Shoot, I've had the prince of nigera, Egypt and Kazakhstan email me. Also turns out I'm related to royalty in England. Who would have thought? Just sent my SSN, routing number and all my other personal information.

 

[pezdispenser]

Sallie Mae is a good friend.

lol Sallie Mae is the biggest gold digger ever. Sweet and seductive in the beginning, but then you're stuck giving half your income and assets to her for the rest of your life.

 

[Sunshine98]

back in the day...I lucked out only had 25K in loans to pay back...DONE!
Bought a used car after I landed a job and paid that off.
Later treated myself to a new car that will be 9 years old this Oct Been Paid off...

Lived poor nothing extra to pay things off in the beginning. Ever since then been maxing out 401 K, IRA, and have a few Index Funds. Built a CD ladder this year.

Next 10 years....just going to stay the course and invest more. Hoping it pays off early so I can go at least part time by 50

 

[BMBiology]

lol Sallie Mae is the biggest gold digger ever. Sweet and seductive in the beginning, but then you're stuck giving half your income and assets to her for the rest of your life.

that is why she's only a friend, not a girlfriend

 

[tungsten87]

for those of you that did residencies, did you pay IBR during the year (or two)? I figure it may be worth it, especially to deduct $2500 off of taxes for interest paid that can to right back into the loan.

 

[xiphoid2010]

for those of you that did residencies, did you pay IBR during the year (or two)? I figure it may be worth it, especially to deduct $2500 off of taxes for interest paid that can to right back into the loan.

I did. I paid extra most of the months, but paying for the weddings and having a baby meant few months I couldn't. But that's where the low IBR minimum provided that flexibility. Tax deduction on student loan interest paid is just bonus.

 

[Muse600]

dang, I suck

good stuff though...it motivate me to start over again...I'm turning it back around for JULY BABY!

 

[Ackj]

I'm doing 1000 per paycheck now. Could do more, but I'm also saving for house/wedding/etc. Should be done in about 4-5 years, maybe less depending on picking up extra shifts or getting a part time gig. As soon as I'm done saving for down payment on a house, I'll have more $ to throw at the loans.

 

[El Trombopag]

graduated in June 2011

family/personal loans - 5K, paid off first
credit card - 15K, paid off second
student loans - 132K, 48K remaining

One more year of pain until I don't owe anyone a dime. I attended an in-state pharmacy school and had no undergrad debt. I am pretty fortunate to be marrying an amazing woman next year - almost exactly when I'll be making that last payment. She offered to pay off my student loans beforehand, isn't she sweet? But I think that would make me a 'kept man', and I won't be having any of that.

 

[Momus]

True story: a man paid off the girl dental school tuition 250k+, she graduated and broke up with him. The man makes less than her, wiped out financially supporting the girl; the girl walked away with 0 debt and a new man that match her dental income to boot.

Moral of the story: Never pay anyone student loan... unless you are naive. Sh1t happens... even if you think it's going to be forever.

 

[confettiflyer]

True story: a man paid off the girl dental school tuition 250k+, she graduated and broke up with him. The man makes less than her, wiped out financially supporting the girl; the girl walked away with 0 debt and a new man that match her dental income to boot.

Moral of the story: Never pay anyone student loan... unless you are naive. Sh1t happens... even if you think it's going to be forever.

Alimony for the guy?

 

[BMBiology]

True story: a man paid off the girl dental school tuition 250k+, she graduated and broke up with him. The man makes less than her, wiped out financially supporting the girl; the girl walked away with 0 debt and a new man that match her dental income to boot.

Moral of the story: Never pay anyone student loan... unless you are naive. Sh1t happens... even if you think it's going to be forever.

No way in hell I am going to pay student loan again. If he had paid her student loan then wouldn't that be considered as a "gift" and therefore, doesn't she have to pay taxes on it?


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[trailerpark]

Where can a guy find someone to pay off his debt? This seems easier for women to pull this off.

 

[Silent Cool]

Taking on ANY debt = living nice now, and living poor later. Eventually, you have to repay it (classic debt cycle - spend now, pay later i.e., living poor later).

I like it the other way around. Living poor now (saving), living nice later.

ANY Debt? What about business debt? Investment debt (ie, real estate?)

 

[Muse600]

@ trailerpark - how far are you willing to go?

I'm guessing you'd have to do some cougar hunting