Paying off Loans!
How to Live Like a Resident: Operation Debt Free Before 33
Here’s my (our) Life of Debt right now. We currently owe money to the federal government and a private bank for the high cost of both our educations. I say “we” since we are married now and our debt is no longer I versus him, but us!
- $40,000 - federal government
- $65,000 - Bank of Mom and Dad
- $9,000 - car loan
-$114,000 - TOTAL owed
These numbers hurt my heart, but I know that with dedication and an actual plan, we can tackle this amount. I had the luxury of not having to accumulate undergraduate debt due to a scholarship. I’ve paid a significant amount already of my medical school loans, but I feel like I’m not even making a dent!
Our goal: pay off the private bank loan first since it’s the higher interest loan, but to tackle the other loans as quickly as possible.
Our entire goal is to be debt free from our education and car loans in 2 years…that’s 24 months we have to contribute as much as we can!
By calculating a 12 month plan for the higher interest loans, and a 24 month plan for the loan from the Bank of Mom and Dad, we were able to calculate a monthly payment towards loans totaling to $8,031.11 (with interest).
That seems SO much more doable than looking at the sum of over $100,000!
I know my income will significantly jump at the end of my fellowship (assuming I get a REAL doctor job). When that time comes, we plan on using my salary solely for loan repayment, and S’s salary for living - which means we’ll be living like a resident for awhile. In the mean time, I’ll be contributing as much as possible to decrease our debt with both my income and S’s income combined.
I’m actually really excited to see how this goes. Please follow me on this journey!