How to Pay Off $10,000 of Debt in 1 Year

Hi guys, Bridget here and I wanted to talk
to you about the suckiest thing that I ever had to do and that was pay off tens
of thousands of dollars of student loan debt. When i graduated from my bachelor’s
degree, I owed almost $21,000 in student loans and I was
working part-time with Apple Store for $14/hr. My debt balance
was soul-crushing and I had no idea how I was going to pay it all off. But 22 months later I was completely debt-free, had tens of thousands of dollars saved for
retirement and was investing in the stock market. I want to share with you
how I did it so if you’re struggling with tens of thousands or even over a
hundred thousand dollars of debt you can feel inspired and motivated to
pay it off in record time. It is totally possible to pay off over ten thousand
dollars of debt per year, as long as you’re committed and you follow these
strategies. The first might seem a little obvious, but a lot of people don’t do it
and that’s maximizing your income. It’s no secret that the more money you
have, the easier it is to pay off your debt. The first thing you should do is
maximize what you’re already earning. This might mean working overtime or
taking extra shifts, or it might mean negotiating your salary for higher pay.
The most important thing is just that you increase the amount of money coming in and you put it towards your debt. The second tip that you should do after
increasing your income is to keep living like a student. After I graduated from my
degree, I didn’t go out and buy a car or buy house. I really just stayed in the same
apartment that I was in and kept the same bills that I had as a student. By
not inflating my lifestyle, my money went a lot further — especially because I
didn’t have to pay tuition anymore! When you’re trying to pay off debt, it will
require some sacrifices in lifestyle, but remember it’s only for a short time
and you can absolutely do it. You should be spending at least 15% of
your net income on repaying your debt. If you’re not it’s time to increase those
payments until you are. The third tip I suggest is to use cash windfalls towards
your debt and what I mean by cash windfalls are unexpected large amounts
of cash that can really put a dent in your debt. Because I paid for my school
myself, I had tons of tuition credits at tax time. This meant when I filed my income taxes, I usually got a fairly large return. Instead of taking it on a trip to Mexico
or buying myself some designer clothes or a new computer, I put it all towards my
debt. This let me pay off thousands of dollars in one payment. If you receive
any kind unexpected large amounts of cash, whether it be from a tax refund an inheritance or even birthday money, don’t blow it! Use it towards your debt.
Finally, one of the best things you can do is devote a single income stream
towards debt repayment. This goes hand in hand with the earning more income. If you
can find a second or part-time job, or a hobby that you can do for money use that just for debt repayment. A few
months after I graduated, I got a really nice cushy job with a good paycheck that
meant I didn’t have to work two or three jobs at a time anymore, but I still kept
tutoring chemistry at the university I graduated from. I could charge
$25 to $35 an hour and see three or four students a
week, which gave me hundreds of dollars more each month to put towards my debt.
Tutoring chemistry was actually the best way to put my degree to use to pay off
the student loans that got me it in the first place. If you can find a small but
consistent income stream, direct that entire income towards paying off your
debt and you’ll see the balance go down super fast. Altogether, these strategies will let you
pay off $10,000 or more of debt each year. It might seem impossible now, but
you can pay your debt off. If you need any extra help you might want to check
out my free Debt Crusher eCourse. I’ll leave a link in the
description below so you can sign up and start crushing your debt. If you enjoyed
this video, please give it a thumbs up and why not leave a comment below
letting me know how much debt you have, and what you’re doing to pay it off.

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