How This Nurse Paid Off $88,197 in Debt in 16 Months!

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Last Updated on November 15, 2019

Becoming debt-free is more than just a choice, it’s a lifestyle.

According to Experian.com, millennials carry the third-highest average student loan balance, at $34,504 per borrower. Mind you this is the average – my loans sit at six figures which is well above average.

I have always been conscious of my debt, but I’ve found myself getting comfortable with it. Strange, right? I was comfortable because the way I was living my life felt normal. When speaking with my peers who also debt, they’ve told me it will take them 30 or perhaps 40 years to pay it off. As mind-blowing as this may sound, I accepted this mindset as the norm. I decided to become debt-free because I want financial freedom.

Today, I am sharing another story in the Debt-Free Success Series. Meet Makeshia Smith! I came across her profile on Instagram and I’m so glad that I did! Her account inspires me to become debt-free!

Y’all, I’m telling you. If you use social media in the right way, you will come across hundreds if not millions of accounts that will inspire you to pursue your dreams! Like many millennials, she knows what it feels like to be drowning in debt. She owed $88,197.00 in debt which stemmed from student loans and car loans. One day she decided, that she didn’t want to carry her debt for 30 or 40 years so she took matters into her own hands. She exhausted her savings, downsized her living arrangement and took on additional shifts at work.

After 16 months of hard work, persistence, and determination she is 100% debt-free. Oh, I forgot to mention that she is also my sister, she and I are members of Alpha Kappa Alpha Sorority, Inc.

Her story resonates with many of us. To learn more about her debt story check out our interview below.

Complete the sentence “I knew I was debt-free when….”

I did not have to budget for a student loan payment!

Tell me a little about yourself?

My journey started from being a low-income first-generation college student. My mother was the picture of frugality so we always knew how to stretch a dollar. What we were not prepared for was the reality of funding the expensive private college I chose — Baylor University — despite scholarships and grants that made it seem possible to attend. After I graduated with my nursing degree in 2012 and secured my first big girl job at 21 years old I experienced some lifestyle creep (brand new car… vacations… I see it, I want it, I buy it). It took quite a few years of treating myself before I realized that I was working hard with not a whole lot to show for it — besides a pile of student loan debt. I wanted my income to start building wealth and not pay for the past anymore.

What did your debt consist of and how much did you (or do you) owe?

My debt was a car loan (about $23K) and both undergraduate/graduate student loans (about $65K) for a total of $88,197.41 which I paid off in 16 months.

At what point did you realize you wanted to be debt-free?

When I completed my nursing education graduate program in 2017 I knew my student loans would come into repayment. I thought to myself “there is no way I can afford $800+ in minimum payments in addition to everything else I have going on.” I started researching student loan forgiveness and extended repayment plans. None of that sat quite right with me so I kept looking. Eventually, I found the debt snowball method, I wrote out all my debt, and I was sick! A fire was lit under me like never before at that very moment.

What steps did you take to reduce your debt?

The first step I made was getting on a written budget! In the first 5 years of working as an RN I had never sat down and allocated how much of my income came in and went out. I started with accounting for my most important categories (food, shelter, transportation) and then looked to see what cuts or reductions could be made (dining out, lifestyle, cable, cell phone, insurance). It was not going to be forever, but the tighter I was meant the quicker all my money would go to me and not someone else for owing a debt! Increasing my income went right along with decreasing my expenses. I was eventually able to find the best avenue of working extra hours without completely burning myself out.

What was the most difficult challenge you faced in eliminating your debt?

Initially working 60+ hour weeks and saying no to things I knew I could “afford” was difficult in the beginning.

I had to completely change my view of what I “want to do.”

Ultimately I wanted financial freedom! If I decided what I “want to do” still included the things I was temporarily saying no to then I would be able to pay for them ALL upfront in cash! I do believe allocating a small amount of spending money was essential to helping me to avoid burnout as well.

Now that you’ve reached this goal, what’s next for you?

I am saving for my first home! At the very least I want to go in with a large down payment, but I do go back and forth on saving to buy something in cash just for me.

I am also learning more about investing every day! Who knew there were FIVE variations of IRAs out there?! Certainly not me!