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How Brian Paid Off $30,000 in Student Loan Debt His First Year Out of College

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Paid off $30,000 in student loan debt

Any time someone chooses to seek debt freedom and succeeds in it is amazing to me. Dave Ramsey’s “debt-free scream” is always a heart-warming celebration to see online and speaking to people who have paid off debt always inspires me. Brian Meiggs’ story is yet another inspiration. He took the time to participate in a quick Q&A to share how he paid off $30,000 in student loan debt.

How He Paid Off $30,000 in Student Loan Debt

When it comes down to it, Brian was able to pay off his student loan debt by pure determination. When he graduated, that was his sole focus. He did not want that debt to have a hold over him for 10+ years, as it does with so many other graduates. Here is how Brian Meiggs got started on his journey and led him to debt freedom.

paid off $30,000 in student loan debtQ: Tell me a little about yourself. What inspired you to seek financial freedom?

A: My name is Brian Meiggs and I’m an entrepreneur who spends most of my time building finance-niched websites from the ground up and making them profitable. Some of my recent projects include My Millennial Guide, Saving Junkie, and SavingExpert.

I’ve always been a hustler. In college, I bought used iPhones and flipped them for a profit. I had a few corporate finance jobs after college, but I found myself bored and without a purpose. I knew I didn’t want to work a 9-5 until I retired so I looked for a way out. I started a blog and eventually, it took off, and now I do it full-time. I enjoy every moment of it and the freedom it brings.

Q:  How much debt have you paid off?

A: I graduated from college with around $30,000 in student loan debt. Being a 23-year-old, that is a lot of money. I spent so much time building a rock-solid budget and maximizing my income in order to tackle this debt. I paid off all of my student loans within one year of graduating college. It was so liberating.

Q: How long had it taken to get to where you are financially?

A: It definitely took me a while to start making my desired income. I thought back and reflected, “man, I’m really doing it!” What helped me reach my income goals was looking at other bloggers who were making anywhere from $10,000 to $30,000 per month. I figured if they could do it, why can’t I?

It wasn’t until my 3rd year of blogging that I felt comfortable with quitting my day job. I was working as a Credit Risk Manager making around $85,000 per year. Once the income from my blog was making me more money per month than my job, I felt comfortable quitting.

I have a funny quitting story, but that’s for another time. Now, I’m making more than six figures per year with all my websites. I simply enjoy the financial independence and not the money itself.

Q: What was the key to your success?

A: My success came from looking at other bloggers who were successful and trying to make my website better. I’m at a tipping point where if I really want to grow, I’m going to have to hire a full-team to help with management. I really enjoy running everything myself but if I want to continue to grow, this needs to happen.

Q: What is the most important part of your finances?

A: The most important part of my finances is continuing to maintain the lifestyle I am currently living. I’m not opposed to splurging on things that I want or saving every penny. I recently purchased my dream exotic car (BMW i8) and I have no regrets about it.

Q: How do you stay debt-free now?

A:  Staying debt-free is done successfully by spending less, finding additional sources of revenue and scaling that up, and having a budget that I actually follow.

Q: What is something you wish you could tell your younger self about money?

A: Money is passive. It comes and goes and while it can make you temporarily happy, creating memories and experiences whether solo or with friends and family, that’s more valuable.

Q: What is your favorite quote?

A: “The root of joy is gratefulness”  – Brother David Stiendl-Rast

Q: Is there anything you would like to leave readers with?

A:  I just wanted to thank you for reading my story and learning a bit about me. I would say the best way to invest is in yourself. Never stop learning or teaching yourself new skills. Every day you should be better than the day before. What do you want in life? Go out and get it. Perseverance is failing 19 times and succeeding the 20th. 

Closing Thoughts

Looking at the success in Brian’s story and how he paid off $30,000 in student loan debt, I thought to myself, “Man, I wish I had done that!” Could you imagine starting out your adult life with absolutely no debt? Hopefully, sharing his story inspires other young people to consider doing the same or taking similar approaches to pay off debt and focus on financial freedom.

Readers, what do you think about Brian’s story? How would paying your student debt off immediately impacted your finances? Was it ever a possibility? 

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Debt-Free and Never Looking Back: How Scott Paid Off $72,000

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Paid off $72,000

Last week, I had the pleasure of sitting down and chatting with Scott Maderer of Inspired Stewardship. Scott and his wife have paid off $72,000 in debt and, since then, they haven’t looked back. Seriously, no credit cards, no mortgage, nothing! Here is a look at Scott’s amazing story and how becoming debt-free helped him regain control of his life.

Scott’s Story

During our chat, I found out that Scott and his wife paid off all of their debt in just about two and a half years. Here are some highlights from the discussion…

  • Scott began seeking debt freedom because he was finding himself depressed because of his finances.
  • They don’t currently stick to a strict budget, but they spend next to nothing on entertainment (thanks to an extensive DVD collection, which he will talk about).
  • He and his wife will never carry debt again. They don’t even have a mortgage now.
  • For Scott, having a plan but being able to roll with the punches has been vital to his success.

I’ll let you give the full interview a listen below.

How Scott Really Paid Off $72,000

In one part of our chat, Scott talks about what has led him to be successful in his debt-free journey and what has kept him free of debt since. For him, there was a “never again” moment where he knew he would never want his finances to have such a stronghold over his life, especially his debts.

This is key for many people to maintain their finances after reaching their debt freedom goals. Having that moment where you realize you truly do not want to hold debt anymore and you don’t want to put yourself in that situation ever again can be life-changing.

If you would like to learn more about Scott or reach out to him about his story he has set up a special page for Our Debt Free Family readers here. 

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Why is No One Talking About Shopping Addiction and Bankruptcy?

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Shopping addiction and bankruptcy

There is no doubt that your finances can have a hefty toll on your mental health and vice versa. I have been talking to more people about their money for the blog and just to make talking about finance a norm with friends and family. While discussing personal finance with them, I’ve noticed something many people aren’t talking about: the correlation between shopping addiction and bankruptcy.

On an even broader note, many people don’t seem to notice the correlation between mental health and finance either. But don’t be fooled. Both addiction and mental health can have a profound impact on your financial situation and leave you stuck.

A Correlation Between Shopping Addiction and Bankruptcy?

I know a few individuals who have filed for bankruptcy. That is absolutely terrifying to me, but for many people who have filed, it doesn’t seem to phase them a bit. In fact, almost all of them have open, recurring debts for things they don’t really need. Programs like Afterpay and Klarna have only exacerbated this issue.

Even though they have filed for bankruptcy, which means they are holding much more debt than they could ever pay off for the foreseeable future. This has to be proven with documentation and, even then, you still may have to forfeit assets and pay off debts for another five years before they are erased.

However, filing for bankruptcy is doing nothing for the impulse control disorder that leads to compulsive shopping. For individuals with these control problems, bankruptcy offers them a clean slate to shop even more with new credit.

Are You a Shopping Addict?

While it is not formally recognized as a mental condition, shopping addiction is a real problem for many people. Luckily, it is manageable with therapy and direction from professionals. You may have a shopping addiction if any of the following applies to you…

  1. You spend a lot of time thinking about shopping and planning purchases. We aren’t talking about meal planning and budgeting here.
  2. It becomes evident that shopping interferes with other parts of your life (i.e. your financial future).
  3. Whoops! You go over your budget fairly often and rely on credit regularly.
  4. Your debt and finances as a whole are just entirely too complicated.
  5. There are secrets you keep about shopping.
  6. You have found that shopping gives you an almost euphoric high.

If you find yourself agreeing with more of these than not, you may want to seek help in getting your spending habits under control. You can also attend anonymous groups for addiction that allows you to connect with others who have gone through similar situations. Once you have a handle on how to change your habits, create a plan to move forward with paying off your debts.

This will ensure you break the cycle of shopping addiction and bankruptcy.

Mental Health and Personal Finance

Shopping addiction isn’t the only mental health issue impacting personal finance either. Addiction in general can have a wicked effect on a person’s finances. Additionally, mental health conditions, such as depression, anxiety, and cognitive disorders can also have a serious impact on the way you spend, save, and accrue debt.

In general, poor mental health can make it extremely difficult to manage and even earn money. Then, once you realize your finances are not in order, your anxiety about your money will just increase. Things can quickly start to seem overwhelming, even impossible.

Final Thoughts

All of these things can be helped, can be treated, and need to be talked about. The problem is, many people want to skate around the issues with bandaids or temporary fixes. That is why this week I’m asking why is no one talking about shopping addiction and bankruptcy?

Talk about money, debt, mental health, and hard issues with your close friends and family. Removing the stigma around these topics can help everyone heal and do better.

As always, if you or a loved one is suffering from substance abuse, addiction, or mental health issues, call the National Mental Health Hotline at 1-800-662-HELP (4357). They can help direct you to professionals that can better assist in dealing with the problem at hand. 

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Should You Take a Loan From Family to Pay Off Debt?

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loan from family

Being in debt is exhausting. So, when an opportunity arises to knock out a big chunk of it (or even all of it), it is hard to turn it down. If a family member or friend offers you a loan to pay off, you should think twice though. Taking a loan from family can sometimes be more harmful than helpful, even if it makes you debt-free.

Is it a Loan or a Gift?

First, before making the decision, determine if the money your family member is offering you is a loan or a gift. The best way to do this is simply asking, “do you expect this to be paid back” or “when do you need me to pay you back?”

How your family member responds to these questions can help you decipher if this is a gift or a loan. If it is a gift, by all means, take it and pay off your debt. Loans from family members, on the other hand, can add additional stress and, more often than not, leads to fighting.

Downfalls of Taking a Loan From Family

Before you take a loan from family, consider the following.

  • You aren’t learning anything. When it comes to the cycle of debt, you are not doing anything to improve your situation. Instead, you are borrowing even more money.
  • Finances can put a strain on any relationship. At the very least, borrowing money from someone is going to make things a little awkward, especially if you can’t pay it back. It is likely they will be examining every penny you spend before you do too.
  • What would happen if you couldn’t pay it back? Of course, you may start out with every intention of paying them back, but things can happen. The loss is much greater on an unpaid loan from a person than a financial institution.
  • There is a general lack of clarity with personal loans like these. You aren’t typically signing any paperwork and most family loans are agreed upon face-to-face in words. There is no way to track the agreement, increasing the risk of someone in the situation feeling wronged.
  • Tax issues may arise if it isn’t handled properly. Loans and gifts have different implications when it comes to taxes. Be sure that all parties involved are taking the steps for taking out a loan outlined by the IRS.

Potential Benefits

All of the above considered, taking a loan from family does have some perks. It is just determining whether or not these potential benefits outweigh the ways it could go wrong. That being said, you can benefit in a few ways if you’re willing to risk the downfalls.

  • You will save money on interest. Loans from family or friends don’t typically come with interest rates attached to them. In the long run, that will save you money.
  • Taking a loan from family can help you avoid predatory lenders. If you really need the money and are looking at high-interest loans anyway, taking the loan from family may be the better option.
  • There will likely be more flexibility in paying them back. Family and friends are more willing to work with you than banks will be. Just be sure you are honest and communicate with them.

Closing Thoughts

My one piece of advice for anyone considering this is to be sure you get everything down in writing. In the agreement include the following:

  • Parties of the loan
  • Amount borrowed
  • Interest rate (if applicable)
  • Repayment date
  • The monthly payment amount.

At the end of the day, I wouldn’t recommend taking a loan from friends or family. For me, I cherish those relationships in my life too much to add any financial stress to them. I can see the benefits of doing so though.

Readers, have you taken a loan from family before? Was it a good decision?

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How Refinancing Impacts Your Debt-Free Goals

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refinancing

Mortgage rates are going down pretty steadily amidst the pandemic. Because of this, many people are looking into refinancing their home loans. Like any other loan you take out, refinancing will have an impact on your debt-free journey, and it can be a good or a bad thing.

What Does Refinancing Mean?

To refinance something simply means to finance it again. This is done by starting a new loan, usually with a lower interest rate. Refinancing loans are typically for auto and mortgage loans, but it is possible to refinance any large loan you may have.

You may be thinking to yourself, “Wow, that sounds like a great idea, I could save so much money!” While it sounds really great, there are a few catches. You’ll need to weigh the pros and cons and thoroughly research your current loan and refinance offers.

How it Can Impact Your Debt Freedom Journey

Refinancing can be both good and bad when it comes to your debt freedom journey. In some cases, refinancing one of your loans may make it easier to reach other financial goals. If that is true for you, then, by all means, refinance!

Additionally, refinancing can help lower your interest rate (sometimes significantly). If refinancing your loan will drive that rate down, great. It is not worth refinancing if the rate drops less than 1% or 2% below your current rate. Regardless, it is still a good idea to try and pay it off in the same amount of time or less. Remember, your long-term goal is still to be totally free of your debt.

When You Definitely Should Not Refinance

While your reasons for refinancing may totally make sense, it isn’t the best option for everyone (or even a good one). Absolutely do not refinance if any of the following is true.

  • You are only refinancing for a lower monthly payment.
  • If refinancing is a way of consolidating debt for you, don’t do it. This can be a huge financial mistake! It perpetuates how much you rely on debt for everyday living and can cost you in the long-run.
  • You are planning on selling the home (or car) soon. It doesn’t make sense to refinance.
  • If your credit is bad, don’t refinance. You won’t qualify for lower rates.
  • You are unable to pay the closing costs of the refinance (for homes). This is usually between 3% and 6% of the loan amount.
  • The loan terms make your loan payment time longer. For instance, if you have paid on your 30-year mortgage for 10 years it wouldn’t make sense to refinance for another 30 years. That only makes it so you’re paying longer.

When it boils down to it if you are interested in refinancing you need to be sure you are doing it at the right time for the right reasons. Do your research and be sure it is the best decision for your financial goals.

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How to Find Everything You Owe (And to Who)

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How to Find Everything You Owe

When you are reviewing your debt freedom progress, you are likely looking at how much you’ve paid off month-to-month. However, if you want the most accurate number (interest included), it is a good idea to know how to find everything you owe.

How to Find Everything You Owe

The first and best place to find everything you owe is your credit report. This will help you see both current and past debts you have yet to pay. You can get one free annual credit report each year and you should do so to get a picture of how much you owe and to who. Most loan companies and creditors report to the three main credit agencies (Experian, TransUnion, Equifax).

Another way to find out who you owe money to is taking a look at Credit Karma. The website and app will give you a snapshot of open and closed accounts with amounts. Credit Karma is not always as accurate as an annual credit report but it can be a good, free way to follow your progress and track your repayment efforts.

For specific accounts, many creditors have dashboards where you can see how much you owe, payment due dates, and other account information. Some credit cards will give you a forecast on how long it will take you to pay the account in full. If you’re wondering if this is something your loan provider offers, contact the company’s support services.

Why Having an Accurate Number is Important

So, why it is important to know how to find everything you owe?

Because it gives you an idea of where you stand and what moves you need to make next! For instance, looking at our credit report, we are able to identify what account needs to be next in our debt snowball.

Knowing how much you owe and to who is also important for tracking anything unusual. If someone used your social security number to take out a loan or credit card, you will know by keeping tabs on how much you owe.

In your debt freedom journey, it is extremely important to be able to find exactly how much you owe, how to locate interest rates, and know that those numbers are accurate. It could make or break your financial success!

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We Are Officially Credit Card Debt Free!

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credit card debt free

COVID-19 definitely put a damper on our family’s debt freedom journey (at first). However, my husband has since gotten a new job and we encountered some windfalls that have allowed us to pick up some of the slack and refocus on our debt-free goals. Now, (insert trumpets) we are credit card debt free!

Being Credit Card Debt Free

Prior to this, we had about $2,000 in total credit card debt. We only had about $500 left to pay off though. So, once we got a windfall, we paid off the last account balance of $498.21, and just like that, we are free of credit cards once and for all.

Honestly, it feels pretty weird! I know it will take of lot of dedication to continue being credit card free. Now, we are one step closer to financial freedom and the ability to put that money towards other debts.

What’s Next

And that is exactly what we have planned next!

Because we no longer have credit card debt to pay off, we are going to refocus that money on paying off the tool loans, the car loan, and student loans. To do this, we are going to focus on them in this order…

  • Tool loans – roughly $10,000 owed
  • Car loan – $19,216 owed
  • Student loans – $24,185 owed

Once these things are severely paid down, we will focus on paying off tax debt and getting any other financial needs situated. Now, you’re thinking, how long will this take?

I’m hopeful it will take us between two and three years to be debt-free. The plan is to add some additional funding to our emergency savings over the summer and then attack our debt full-on. Every extra penny we have will go towards paying off each of these accounts (in that order). Any windfalls, such as cash gifts, bonuses, and over time will also go towards debt repayment.

Once we are debt-free, we will be looking to buy a home. Initially, that will be more debt, but because we are going to be financially free, it will be easy to swiftly pay the house off. Being credit card debt free has us both optimistic and thinking about our debt-free future! Readers, how did you feel after paying off all of your credit card debt? 

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A Few Things to Know About Loans

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The current life standards have forced many people to think about the option of getting a loan whenever they want to buy something or enjoy a good holiday abroad. Even though people are paid much better than 20 or 30 years ago, the standards have risen to a point where you need to apply for loans several times throughout your life.

This is not something that we should be ashamed of. After all, those are things that we have to get used to. Some research has shown that more than 60% of the people in the world are living in some kind of debt. There are many things to know about loans and paying them off, but we wanted to share a few interesting facts about them which are highly informative.

Debt Consolidation

When you get a loan, it’s important to have a plan on how to pay it off. If you don’t have a plan, you might end up not being able to keep up with the monthly payments which can lead to a lot of trouble. One way to manage to overcome a problem like this is debt consolidation.

Debt consolidation is a form of refinancing in which you take a loan which will pay off all other loans. There are many advantages to it, like lower interest rates, fresh start on monthly payments, etc. But, these advantages come only if you get this type of loan form a good and credible company. So, it’s extremely important to choose a good company which will help you deal with your financial difficulties.

The overall lower interest rate is what makes debt consolidation loans so popular and handy for anyone who is having trouble paying off their debts. With this type of loan, the repayments can spread over to a larger period.

They Are Available Online

As we all know, there are plenty of advantages that came with the rise of the Internet. Many services have been made available online. Such is the case with online loans. Many online lenders hand out loans to people all around the world and they became extremely popular lately. The reason for that is that they are very easy to deal with.

Online lenders are flexible with their clients. To make things even better, their approval rates are much higher than the ones of the banks. Online lenders have a 70-75% approval rate, whereas the banks have around 55-60%. The applying process is also much faster – all you need to do is fill out an application and wait a few days for feedback.

Countries With Low Interest Rates

The top 3 countries with the lowest interest rates in the world are Switzerland, Denmark, and Japan. The good economic state, as well as the politics of the countries, have been huge contributors in making them stable and ‘affordable’ to the people. Feel free to check out the top 5 list here.

Side Jobs Can Help You Pay Loans

This may sound a bit funny, but many people around the world take up some side jobs as a way to help them pay off their debts. And they can extremely helpful, a lot more than you would think. There are plenty of easy profit-making side jobs that can better your financial status and ease your worries when thinking if you are able to pay off your debt. Going online to make money is also a good idea.

5 Things to Avoid to Live Debt-Free

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Live debt-free

Reaching financial freedom is far from easy. Only 29% of Americans consider themselves to be financially healthy. Once you obtain debt freedom, you want to be able to stay there. So, there are several things you’ll want to avoid to live debt-free.

1. Budgeting is Always Crucial to Your Financial Health

You had to budget to get out of debt. That doesn’t stop just because you no longer have creditors to pay off. In fact, budgeting is even more important once you’ve paid everything off. If you don’t set a budget you run the risk of racking up debt again if an emergency arises.

Remember that your budget needs to be 100% cash. Don’t consider your credit cards or any other form of money spendable.

2. Overspending is a No-No If You Want to Live Debt-Free

That directly ties into overspending. If you start considering the money available on credit lines to be spendable, it is more likely you’ll restart the cycle of debt in your life. You certainly don’t want that after all of your hard work to get where you are.

Instead, plan for bigger purchases and save up for what you want. You should also have a set budget for recurring expenses and other plans. Don’t deviate from that budget.

3. Don’t Stop Saving Your Money

Saving money isn’t just important during your debt freedom journey either. As mentioned in the point above, it is important to save money for large purchases and planned expenses. However, it is also always a good idea to keep money saved.

Having an emergency savings fund will keep you from tapping into credit lines if something comes up. Additionally, saving money can help you secure your financial future and ensure you’ll be able to retire someday.

4. Giving Up on Investing Isn’t an Option

When it comes to saving for retirement, you should also continue to invest while you live debt-free. Even though you may not have as much cash flow or you may be tempted to spend cash, it is a good idea to invest in a diversified portfolio.

Not only will this allow for you to have financial freedom throughout the rest of your life but it can help you expand your current finances. Avoid being afraid of the stock market once you’ve paid off your debts.

5. Neglecting Insurance Will Cost You

Renter’s insurance, homeowners insurance, car insurance, and health insurance. Purchasing coverage is important to protect your finances. In the event of an accident or emergency, these policies can help you avoid racking up debt.

Even though the monthly cost of insurance may seem like a pain, it can help you replace damaged items, restore your health, and protect your belongings. Without it, it is easy to swipe your credit card. Insurance is crucial if you want to live debt-free.

Readers, what else would you add to the list? How do you live debt-free?

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Debt-Free and Bored: How to Manage Life After Debt Freedom

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debt-free and bored

If you’re like me, you are probably still daydreaming about what it might be like to be debt-free. Surprisingly, many of the people I chat with once they reach financial freedom find it a bit boring. So, here are a few things to consider if you’re debt-free and bored already.

What it Means to be Debt-Free and Bored

You may be thinking, “how can you be bored with being debt-free,” but it is possible! The road to debt freedom is anything but boring. So, once you pay everything off, some individuals find themselves wondering, what next?

Many people actually slip back into debt at this point (almost like they are looking for a financial challenge). They’ll begin doing things they never would have done before paying things off. So, why now?

Well, financial freedom is very freeing but it also removes structure from your finances in some cases. If you were sitting down and budgeting to pay off debt, you knew where everything is going and typically have a few problems to solve. But, once you’re debt-free, things can get a little boring after a while. What’s next?

Things To Do

If you want to stay debt-free without boredom though, it can be difficult. There are so many things out there tempting you to swipe a credit card or take out a loan on. Here are a few things you can do if you find yourself debt-free and bored…

  1. Plan something you have to save for. Whether it is a vacation or a new car, you can always find something exciting to save up for. If not having a new financial issue to solve is the problem, finding a reason to save can help with your boredom.
  2. Take on DIY projects. Homeowners can take advantage of the freed-up cash they have from paying off their debts to make some improvements around their home. Put in that dream bathtub you’ve always wanted or re-do the kitchen. It’ll keep you busy and you’re putting money back into your real estate investment.
  3. Invest. Generally, once you’ve paid off your debt, you can start looking at different ways to invest. Be sure you’re maxing out your retirement contributions. Then, think about looking into other places to invest. The stock market can be an exciting place if you’re feeling bored.
  4. Bet on yourself. Maybe you’ve always wanted to quit your job and travel or start your own business. Without any debt attached to your name, you can bet on yourself. Take the extra cash you have and put it towards your next adventure, whatever it may be.
  5. Donate. Now that you can, donate some of your money to good causes. Take time out of your day to volunteer.
  6. Find new challenges. Just look for something else to challenge you financially. For some people, this may mean becoming active in the stock market. Others may look into peer-to-peer lending or different ways to expand their cash. Look for something that interests you.

I’m still working towards my own debt freedom goals, but thinking about a day where I might be “debt-free and bored” is exciting to me. Debt-free readers, what have you done to maintain your financial freedom?

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