Thanks everyone for the unexpectedly kind words. The few friends I’ve let in on my debt secret were either too shocked to have a good response or told me I was an idiot for taking this level of debt. Thanks Forcus for the encouragement. It does help to have a low income background. I am able to budget much better than my counterparts (late 20’s early 30’s). Giggles, I am actually working at the state level, but hope to make the career advancement to a related environmental/transportation fed agency. I believe I am qualified for GS9, once I get to that point. Simonsez, I do understand the program. I actually know the program so well that I’ve been counseling friends and recent grads on how to sign up for ICR, IBR, PSLF. I actually read about the program in 2007 right after it passed. It worked out well with this slow economy that I got a government job.
Keith, my debts are fairly complex but I’ve had a tight budget throughout my adult life (thank goodness for excel). I have 3 student loan payments, 3 credit card payments, insurance (vehicle), cell phone, net, groceries, fuel, and old taxes (my first job out of college was contract).
My 3 student loan payments; one for the feds (6.8%, right now 3.4%) paid under IBR so that I pay $265/mo, one state loan (fixed 5.25%) paid as a modified income contingent $250, and the last private (mix of variable around 8%) paying $130. This doesn't include one loan I recently paid off that was originally $1600 @ 7-8% and I had been paying double the $25 payment. I’m currently enrolled in IBR with the Dept of Ed, so that I pay the 15% of income after an adjusted AGI.
My credit cards stand at 3400 @ 29% and 1000 @ 26%, with the remainder (2900) transferred to a 11% card. I make payments on these at $200/mo, $100/mo and $100/mo. My priority is to pay of the 29% card first, thus the $200/mo. I will then pay down the 26% card and lastly the low interest Credit Union card.
My other expenses are very low. I live with my S.O. and pay her $240/mo for the mortgage and $100/mo for utilities. I also pay $72/mo in vehicle insurance, $200/mo in fuel and $400/mo on all grocery/household items. (We eat organic meats, hormone free dairy, etc. that raises the food budget some. I also started a garden this year that will provide a good third of our produce. One word, canning.) I also have about $900 of outstanding fed income tax to be paid, which I’ll be rolling into my 2013 returns (it seems the late payment interest is less than the CCs, so I’m attempting the extension to pay down the 26% card first).
The $30/mo I spend on Netflix and Hulu are basically unnecessary, but provide the lion’s share of our entertainment budget. The most unnecessarily draining cost is the $90/mo I spend on my cell phone. Like Mr. Moustache, my contract position had been paying a portion of my iPhone service. My contract is up this Nov and I hope to make the same switch.
I spent all of college waiting tables and have considered pulling that old skill out of the closet to make some secondary income. I also spend a fair amount of my free time outdoors. I like to photograph native landscapes and plants. I hope to compile a photo book of native plants that grow along lakes and streams (where I spend most of my time), so that I can monetize my hobby. I’d love to hear any other suggestions, such as holiday jobs, etc.
