I graduated with my MBA two years ago and came out with a fantastically large six figure amount of debt. I hope to document my progress towards debt payoff including any tips I’ve learned along the way.
My financial situation unfortunately didn’t start with grad school. I was saddled with a $17K car loan, about $12K in credit card debt, and about $30K in undergrad loans before I even applied to get my MBA. I was living in Washington, DC making next to nothing and I knew I needed a career boost. An MBA seemed like a good option because it was flexible enough to work in multiple fields and being a flighty 24 year old I had no idea what I wanted to do when I grew up. I did know know the longer I waited to go to grad school the less chance I had of actually going. I decided to go for it and deal with the consequences later. Not my most brilliant move but its a little late now… I did end up getting my MBA through the part-time program because as anxious as I was about incurring more debt I was even more terrified of not having an income for two years. I would say that was the worst/best decision I ever made. Going through the part time program allowed me to knock out my car loan and credit card debt while my loans were deferred but I had also planned to pay cash for some of my tuition which didn’t materialize. As happy as I was to put my car loan and credit card debt behind me, I didn’t stop going out all the time, buying just about everything I wanted, and paying no attention to my increasingly mounting loans.
Fast forward to about a year after grad school, I was fortunate to get a high paying job in banking which landed me on the fringe of a six figure salary. The job was in a much smaller and more affordable city, so I jumped at the chance to make a high salary in a city with a very low cost of living. I’ve been in the city for about a year now and have sadly only made a small amount of progress towards my loans. As soon as I moved here I got slapped with a huge tax bill from the IRS (about $8,000), which took me about five months to pay off. I’m now at the point that I need to get serious about paying off my debt and I plan to document my progress and any tips along the way through this blog. I need some accountability in my life and I appreciate any comments/tips/similar stories about debt payoff and strategy that you all have.
Happy debt payoff!