Author Topic: The GF is debt free and oh yea my NW hit 50k today too  (Read 3855 times)

CmFtns

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The GF is debt free and oh yea my NW hit 50k today too
« on: May 20, 2016, 07:57:26 AM »
So when I started dating my GF a few years ago she had $40k+ in student loans, around $10k in a 401k from a part time job, and was applying to nursing school. I had no debt and around $10k in savings. Over the next 1.5 years she managed to finish up her schooling without taking out any more debt and we both graduated and started full time work. In 2015 we started reading MMM and got really focused on our finances and we developed a plan for her to get out of debt and raise both of our net worths most efficiently over the next year.

To raise her net worth most efficiently we wanted to lower the taxes for the year but there was 7% interest on her student loans. The solution we found was CREDIT CARDS... Her credit score was great so we took advantage of that and she signed up for four 0% credit cards and used those to pay off all her loans while also getting $1000+ in rewards dollars and signup bonuses.

Now that interest wasn't a problem we could start the plan... All her student loans were now essentially on 15 months of interest free loans so she contributed 75% of her salary to 401k and maxed that and also put $5500 in a traditional IRA for 2015. Now that the pre-tax dollars were maxed for 2015 she changed 401k contributions back to zero and dumped as much money as possible into the credit cards and as of today's paycheck she has zero debt and $30k in retirement accounts and she is ready to max her 401k in the second half of this year for 2016. All this happened months ahead of the plan and way before the credit card interest started =)

Also today my net worth hit $50k according to mint... =) it's happy days around here for us and we're looking forward to the future.
« Last Edit: May 20, 2016, 07:59:55 AM by comfyfutons »

Metric Mouse

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #1 on: May 20, 2016, 09:20:38 AM »
Pure awesome.

Runningtuff

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #2 on: May 22, 2016, 02:12:26 AM »
Nice!

human

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #3 on: May 22, 2016, 04:38:42 AM »
Damn that's awesome. I would've been shitting bricks about missing one month's of payments and then all of a sudde stuck with a 20 percent loan. Good for you guys right of college you actually have a  net worth. Try to avoid going house poor if in a hcol area.

lifejoy

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #4 on: May 31, 2016, 10:09:23 PM »
That's phenomenal!

Secretly Saving

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #5 on: May 31, 2016, 10:19:27 PM »
Congratulations!  Way to know down all that debt!

ETBen

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #6 on: June 01, 2016, 09:16:30 AM »
Great work!

CoreyTheMan

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #7 on: June 01, 2016, 10:17:09 AM »
hmmmmmmmmm.....so this must be what financial porn looks like.....

CmFtns

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #8 on: June 01, 2016, 10:38:01 AM »
Thanks for the replies all... Have any of you ever considered using 0%CC to leverage student loans or any loan debt... I know only a few loan providers would actually accept credit card payments but I still thought it was very interesting how this worked out for us.

teadirt

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #9 on: June 01, 2016, 11:48:32 AM »
Thanks for the replies all... Have any of you ever considered using 0%CC to leverage student loans or any loan debt... I know only a few loan providers would actually accept credit card payments but I still thought it was very interesting how this worked out for us.

My student loan provider doesn't accept credit card payments, unfortunately. I've only got a few thousand left though at this point so it wouldn't make a big difference anyway.

I had a friend in college whose parents paid for his tuition with credit cards and then paid off the balance immediately. I can only imagine the rewards!

sakura

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #10 on: June 03, 2016, 01:50:01 PM »
wow, congratulations! ive never heard of using credit cards like that.. I mean, they give you a whole year for 0% interest?

2Birds1Stone

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #11 on: June 03, 2016, 01:54:38 PM »
Nice work to both of you!

I can't wait till my SO is debt free. She has made leaps and bounds in terms of finances since we started dating nearly 6 years ago.

CmFtns

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Re: The GF is debt free and oh yea my NW hit 50k today too
« Reply #12 on: June 04, 2016, 09:30:30 AM »
wow, congratulations! ive never heard of using credit cards like that.. I mean, they give you a whole year for 0% interest?

Yea ton's of credit cards do that because they want you to transfer balances from other credit cards or charge big things that you cant pay off in time.