33K, but manageable...
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Forum Name: Describe your Debt Load!
Forum Description: Post stories of your debt and how it affects you and your family
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=4651
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Topic: 33K, but manageable...
Posted By: db108108
Subject: 33K, but manageable...
Date Posted: 27/December/2007 at 6:04am
I'm in repayment and at a job that pays almost nothing. I've been quite depressed about the whole situation, but sat down the other night, opened up Excel and did some calculations. I ultimately came to the conclusion that it's not that bad, really.
I have 6 months of interest relief left (from the original 30), but instead of not making payments, I'm going to bank the regular payments then apply them to the principle in May. Just by doing that and continuing to make static payments, I can reduce my repayment term from 114 months to 90! It's really incredible what that compound interest does...
I'm starting a PhD in September 08 and figured that if I put away 2k a year (not unreasonable) then apply the 10k at the end, my debt is down to 20k and I'll save myself gobs on interest.
I really thought that I had painted myself into a corner, but it's really not that bad. Sure, I'll have to live frugally, but I know I can do it.
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Replies:
Posted By: paulaffleck
Date Posted: 27/December/2007 at 8:59am
I agree that it is not unmanageable. My debt load at graduation was about $63K, and I made no noticeable progress on decreasing it until three years after graduation. However, once my income rose to a certain level (just this past year), I decreased it to $32K.
My thinking changed from, "Oh my god, what have I gotten myself into", to a mindset where I now see the debt as an investment in my future. Probably, you have already come to consider your debt in a similar fashion. Besides, unless you come from a well-heeled family, there is no other way to pursue a higher education, than to accrue at least some student debt. At least, for me and my ways, that held true.
I would only stop to agree with you on another point you made. Making yourself live below your means, including not getting married and having kids until you have become financially healthy, is critical to overcoming the debt. It's simple, but hard. I wasn't able to do it until I moved out of a very high cost of living city.
Good luck.
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