Adrian was working as an administrative assistant, and Kyle was working one of several odd jobs. They had a combined income of $30,000 and were hoping it’d be enough to get approved for a home loan.

All was going well until Adrian unexpectedly lost her job. Then several months later, her husband was laid off as well.

Surviving Debt on No Income

The unexpected layoffs forced them to reconcile with the devastating realization that buying a house had all but become an impossibility. 

“We had no business at all trying to buy a house,” Adrian said. “We were literally in the process of getting the loan and then we lost our jobs.  At the time, I was devastated, but I am so thankful looking back. We would’ve been in foreclosure in a minute because we had zero savings and no jobs.”

To take control of her income, Adrian started a business as an independent retailer for a clothing brand.

Like many small business owners, she financed her $20,000 inventory with credit cards. She didn’t have a plan for paying them off and hoped her entrepreneurial spirit would be enough to make it work.

Even as the business turned a profit, Adrian couldn’t enjoy her success.

“The business actually did really well, but I bought all of my inventory on credit cards so it was constantly bothering me,” she said. “I knew that it was not how I wanted to run a business.”

Less than a year after starting the clothing business, she sold her inventory at a loss and looked for a fresh start. Adrian knew the first thing she and Kyle needed to do was take concrete steps to pay off their debt.

Side Hustling to Accelerate Their Debt Payoff 

Kyle and Adrian needed to make money fast. Instead of waiting to find better jobs, they started several new side hustles to supplement their income.

Adrian waitressed at a Texas Roadhouse in the evenings and worked in her friend’s consignment shop on her nights off. She and Kyle also worked as youth pastors, and Adrian began a full-time job as a bank teller.

Working four jobs wasn’t easy, but she decided it was necessary.

“If I didn’t work those side jobs, we would’ve barely paid our bills, let alone contributed to [paying off our debt],” she said. “It was a hard time, but I kept thinking, ‘There will be an end. This is only temporary. This sacrifice is worth it.’”

Related: How to Make Money with an Online Consignment Shop 

Their Advice for Making It Work

When you’re juggling a full-time job with a side hustle, the Hildebrand’s suggest becoming more organized and protective of your time [to fit everything in].

1. Stop multitasking.

Instead of signing up for an app like Uber or DoorDash that lets you clock in whenever you want, Adrian worked side hustles that required her to show up at a certain time.

They weren’t as flexible as work-from-home opportunities, but they allowed her to be fully present at home when she wasn’t working.

You may think you can multitask, but you’re more effective when you focus on one thing at a time. A study done in France_[1] showed that participants who had to complete two tasks at the same time were more likely to forget details and made three times as many mistakes.

2. Schedule it.

Adrian said she learned and mastered time management strategies to stay on top of her responsibilities.

“I scheduled everything,” she said. “If it didn’t have a place on the calendar, we couldn’t do it.” Don’t let your day be dictated by your to-do list. Schedule your work and activities, and then stick to your schedule. Spend the last 15 minutes of the day scheduling the next day.

Write down your three most important tasks so you know what to work on in your downtime.

Whenever possible, schedule your side hustles early in the day. As the day goes on, you’re less likely to want to deliver food or walk other people’s dogs. This is easier to do on the weekends, but you can sometimes get a few gigs in on your way home from work during the week.

3. Be willing to say no.

Don’t let others control your time. Be willing to say “no” to jobs that don’t pay well or events you don’t really want to do. You can fit anything into your day, but not everything.

Be straightforward but courteous in setting your boundaries and you’ll find you have more time for the things that really matter.

Related: How to Balance a Side Hustle with a Full-Time Job

You Can Pay Off Your Debt No Matter What Your Schedule Looks Like

After two and a half years of hustling, the Hildebrands made their last credit card payment in July 2019.

Now that they’re debt-free, Adrian said she likes only working one job. She’s started a new business as a Certified Financial Education Instructor helping others get their finances on track before a crisis happens.

Kyle and Adrian still hope to become homeowners one day, but they’re glad it didn’t happen when they originally wanted.

“Some of the best doors have opened for us after debt freedom because we’re no longer slaves to our debt,” she said.

There’s hope if you’re struggling to pay off debt on a low income. There are plenty of online jobs that pay well and don’t require much experience. Keep trying and applying until you find the ones that work for you.

If you need to work multiple jobs to pay off debt or make ends meet, use time management techniques to open up small pockets of time for getting more done. You’ll find the more intentional you are with your time, the faster you can achieve your goals.

Related: How One Woman Paid Off Almost $10,000 of Debt in Eleven Months

The post $20,000 in Debt and Jobless. How This Couple Beat the Odds appeared first on DollarSprout.

Micah had two jobs for about 12 years: a day job as a subrogation specialist at an insurance company and a side hustle fulfilling orders at a local grocery store. But she still wasn’t getting ahead.

In fact, she was struggling with money, despite her college degree and two income streams. Micah had $9,970.40 in student loan and credit card debt but could only make the minimum payments. Sometimes, she couldn’t make them at all.

Eventually, it became too much and she knew something had to change. So she got proactive and employed a strategy to completely eliminate her debt.

Her Christmas Epiphany

On Christmas Day 2018, Micah looked around at her friends and family and realized that she was the only one with two jobs. She was working, working, and working, yet still living with debt. “I felt like I failed at adulting,” she told me.

Micah was tired of working two jobs and made it her goal to get out of debt. She knew she could quit her side hustle once she became debt-free, and one job would mean more time for reading, writing novels, and doing other things she enjoyed.

She Asked for Help

Once Micah made the decision to get out of debt, she got some help from her friend with a financial planning background. “I had a bit of a meltdown related to my debt via text and she offered her services free of charge,” Micah shared.

At first, Micah was hesitant to accept her friend’s offer. She wasn’t sure how she felt about opening up about her finances. But she decided to take a leap of faith and accept it. Fortunately, her friend was non-judgmental and gave her plenty of valuable financial advice and money-saving tips.

She also created a spreadsheet to get serious about tracking expenses, total balances, and minimum payments so that Micah knew how much she had to pay each month toward her debts.p

The spreadsheet was based on the debt snowball strategy. Using this method, Micah focused on paying off her smallest debt first. Then, she used those payments to tackle the next smallest debt and so on. The debt snowball allowed her to see quick progress and get more excited about her journey.

“I was motivated by checking my debts off and seeing account balances drop to $0. The debt snowball was ideal as it gave me the momentum I needed to knock out each balance,” Micah explained.

She Cut Back on Spending

Once Micah’s friend created a budget for her to follow, Micah scrutinized her monthly spending to find ways to cut back.

For instance, although the cafeteria at her day job was convenient, she realized she was spending about $30 per week buying food and committed to packing her lunch instead.

She also spent less on clothes and shoes and put an end to impulse purchases like buying books on Amazon. Adjusting her spending habits was tough, but as she saw her debt decreasing, she was motivated to keep going.

“Even though paying down debt was my top priority and I followed my friend’s budget as closely as I could, I didn’t sacrifice everything. I did treat myself to dinners out and entertainment every once in a while. The balance was important to me,” explained Micah.

Although she didn’t track every penny of her spending, having a specific budget to follow made it easier for her to stay on track with her debt repayment plan.

Related: 12 Tips for Paying Off Debt Fast

She Hustled Hard

While cutting her spending was helping her reach her goals, Micah knew she had to continue with her side hustle as a personal grocery shopper at a local grocery store to really make progress.

She worked two nights per week at the grocery store after eight hours at her day job. On the days she worked two jobs, she left her house at 6:00 am and didn’t return until 10:00 pm. In addition to the two weekdays, she also worked every weekend.

Side hustling 15-20 hours per week on top of her full-time job was exhausting. “I didn’t stop because I knew it was temporary. I told myself that once I paid off most of my debt, I’d quit the grocery store gig and only have one job before I turned 40,” Micah explained.

Every time she felt frustrated, she would look at the budget template spreadsheets her friend created. The changes in the numbers reminded her of her progress and reassured her that she was on the right track.

Her supportive husband helped, too. He cleaned, cooked, and took care of other tasks at home so she could relax in the little free time she had. Knowing the situation wasn’t permanent made things much easier on their marriage.

Related: 189 Best Side Hustle Ideas for 2024

Bumps in the Road

Even though Micah was making progress on her debt, the process didn’t go as smoothly as she hoped. In fact, there there were two issues that set her back. Her dishwasher broke and she needed a new one, so she put $1,100 on a zero-interest store credit card to replace it.

Then her cat Cleo developed some serious health issues that required daily medication, which cost $100 per month. When Cleo passed away, Micah used her Discover card for the $700 it cost to cremate her. Adding to her debt wasn’t ideal but those setbacks taught her to be flexible and patient during the process.

“I kept hustling and never gave up,” she said.

She Paid Off Debt and Quit Her Side Hustle

Thanks to hard work, commitment, and resolve to be debt-free, Micah paid off $2,796.90 in student loans, $1,258.12 on various store credit cards, and $5,915.38 on a Discover credit card. Her debt repayment totaled a little under $10,000 in 11 months.

Micah’s life looks a lot different today than it did in January 2019. She no longer brings dinner to work in the morning to eat in between jobs. Instead of working nights and weekends, she was able to quit her second job. She now spends that time reading, writing, and relaxing.

She’s also able to attend happy hours, birthday parties, and hockey games — things she missed out on when she was working two jobs.

Related: How to Overcome the Challenges of Being a Female Breadwinner

She Replaced Debt Payoff with Savings

Now that she’s debt-free, Micah is able to save money, and she’s very intentional about it. She puts anywhere from $25 to $100 in her savings account each month. Even when things are tight, she tries to save at least something. “My savings strategy will prepare my husband and me for emergency expenses and allow us to take small trips here and there,” Micah said.

She also does her best to keep grocery bills low and eats almost all of her meals at home. She’s much more careful about what she uses her credit cards for than she used to be.

“Before I make a purchase these days, I think about how I’ll feel about it in the long run,” Micah explained. “If I know I’ll regret it, I don’t follow through with it. I hope to continue this mindset and stay out of debt in the future.”

Related: How This Couple Paid Off $20,000 in Debt After Losing Their Jobs

The post Undeterred: How One Woman Paid Off $10,000 of Debt in 12 Months appeared first on DollarSprout.

If you’re among the 2021 graduating class, you may find comfort in knowing that your peers are straddled with an average $36,900 in student loan debt, according to the most recent data._[1] I graduated from college more than a decade ago, but my results were very similar.

When I walked across the graduation stage to receive my diploma, I could almost picture the tumbleweeds blowing through my bank account. On top of that, I was now the proud owner of a $26,000 student loan balance – plus the $4,000 I owed on my credit card. To say that I was financially unprepared for post-grad life financially unprepared for post-grad life was an understatement. 

With my shiny new degree in hand, I packed up my belongings and moved back into my parents’ house. Buoyed by the knowledge that I wouldn’t need to start paying back my loans for another six months, I began my job search.

I was happy to find a job in my field and was pretty sure that everything would work out just fine for me. I hadn’t told my parents about my credit card debt, but I was able to scrape together just enough to cover the monthly minimum payment.

My parents had always taught me to be responsible with credit cards and had given me one in high school so that I could build my credit. They gave me a spending limit and paid off the balance for me every month. But that lesson in responsibility obviously went in one ear and out the other.

Good Judgement Comes from Experience

There’s a saying that goes, “Good judgment comes from experience; experience comes from poor judgment.” While some people can learn from others’ mistakes, I seem to learn best by making my own. 

I was 16 when I got my first job, and I bought my first car shortly after that. My newfound freedom was intoxicating. Like most teenagers, I felt like having my own set of wheels and a little spending money meant that the world was mine for the taking.

I’m a spender by nature. Thanks to new clothes and shoes, and evenings out with friends, my money was gone as soon as it hit my bank account. Since I pretty much always had a job after turning 16, my spending wasn’t much of an issue…at first.

Although I was spending money in my late teens, my purchases were always limited by my paycheck. I put little thought into saving or investing my income. Money was meant to be enjoyed, and I tried my best to do just that.

When it was time to apply for college, I ignored the more affordable in-state schools in favor of options that would take me to new places. Although attending an out-of-state university meant a greater financial burden for both my parents and me, taking on student loan debt felt like the norm. In my mind, I would graduate with a four-year degree, get a job, and take steps to pay off debt just like everyone else.

Hitting Rock Bottom

When all was said and done, my portion of my college bill was a little more than $26,000. This was in addition to the loans that my parents had covered to fund my education. And I had also managed to rack up that $4,000 credit card debt, don’t forget.

For the first few post-college months, I was able to cover the minimum payments on my credit card bill with whatever money I had left in my bank account, but I couldn’t sustain that practice without an income. At that point, I wasn’t even thinking about my student loan debt, since I didn’t have to start repayment until the following January.

Even though I applied to open positions and sent out resumes on a daily basis, I wasn’t having any luck with my job search. While living at home was free, I didn’t have any spending money. I was just trying my hardest to keep my parents in the dark about my credit card debt.

When the next credit card statement came in the mail, I realized that there was no way I could afford the minimum payment. I finally had to face reality: I would have to ask my parents to bail me out.

After my panic faded, I got up the courage to explain the situation to my mother. It was one of the hardest conversations I have ever had with her and was a turning point in my personal finance journey.

Learning About Debt the Hard Way

My mother wasn’t happy about my debt, but she agreed to help me out – on the condition that I find a job as soon as possible. She wanted me to pay off my debt as quickly as I could, and to use my money troubles as a learning experience.

We also agreed that I would pay her back as soon as I started earning money. After being on my own in college for four years, crawling back to my parents was a tough pill to swallow. But looking back, I am very glad that I learned this lesson early on.

With credit card debt hanging over my head, I found a job that was semi-related to my degree. Although I didn’t particularly like it, it paid well enough for me to make a dent in my debt. During the next few months, I threw as much money as I could at my credit card bills.

In the meantime, I began researching personal finance and learning the basics of managing my money. Even though I had my college degree in hand, I was woefully unprepared for the challenges of the real world. I scoured websites, blogs, books, and personal finance podcasts to learn as much as I could about financial responsibility.

After being forced to move back in with my parents and ask them for money, I vowed to regain my independence. My debt was just the kick in the pants I needed to take charge of my finances and never look back.

Related: Should Parents Pay for Their Children’s College Education?

Four Lessons I Learned Graduating with $30,000 in Debt

Financial education is still severely lacking in both high school and college curriculums. While students learn how to solve complex math equations and write essays, most are never taught basic money skills like how to make a budget.

I was forced to change my mindset after growing up thinking that debt is normal and money is meant to be spent. This took a lot of research and hard work, but it was well worth it. Here are the lessons I learned after graduating from college with $30,000 in debt.

1. Every dollar has value

One of the first things I did was look through my old credit card statements. After racking up so much debt, I wanted to see how I had spent my money and what I had to show for it.

After inspecting one credit card statement after another, I came to a shocking conclusion: I had nothing to show for all of my spending. Most of my money had gone toward drinks, eating out with friends, and clothes that I no longer wore.

This realization made me reevaluate my money and spending habits. I didn’t particularly like the job I was working, and it was a wake-up call to realize that all of my paychecks were going to my past, frivolous spending.

Pouring my entire income into paying off debt changed how I thought about money. It fueled my newfound interest in personal finance and helped me understand how to manage my money the right way.

This turning point completely changed my life. Had I not graduated with so much debt, I would probably still be living paycheck to paycheck, struggling to pay my bills. But my experience paying off my debts taught me the value of every dollar I made and saved.

2. Money is freedom

One of the main reasons I was forced to move back home after college was a lack of funds. When I graduated, I had no money, no job, and no prospects. All I had was my degree and a significant amount of debt hanging over my head.

My parents were kind enough to let me move back home while I searched for a job, but not everyone has that option. I am deeply grateful that I had the chance to live rent-free while I figured out what to do with my life.

But after having lived on my own for four years in a different state, being back in my old bedroom was a painful and humbling experiencing. Waking up in my childhood bed was a daily reminder that I now had to answer to my parents.

The ultimate goal of paying off my debt and moving out on my own again fueled me during those long months. That freedom was the light at the end of the tunnel that motivated me as I continued sending out applications and going on interviews for jobs in my field.

After two post-college internships, I finally landed a full-time job that allowed me to move out. By this point, all of my credit card debt was finally paid off, and I was managing my student loan payments.

Learning from my past mistakes, I worked hard to build an emergency fund before moving out on my own. My new salary wasn’t very high, but I worked hard to keep my expenses – including rent – at fewer than 70 percent of my income.

One of the most important lessons you can learn as an adult is that having money means freedom and choices. A high-paying job will not provide any more freedom than a low-paying job if lifestyle inflation follows you along.

3. Having a support system is crucial

Although I hated moving back in with my parents or asking them for money, their support was invaluable. Without that safety net, I would never have been able to pay off my debts as quickly as I did.

If I had attempted to live on my own at that point, my rent, utilities, and food would have added thousands of additional dollars to my debt balance.

Not only did my parents provide me with room and board, but they also did so for free. I had taken their help for granted while I was in high school, but after moving out on my own, I was able to fully appreciate their support.

I worked a part-time job all throughout college and during the summer so I could pay my bills. Even though I still wasn’t saving money, I was learning some important life skills. That was the first time I rented an apartment on my own, paid for utilities, bought groceries, fed myself, and so on.

That experience made me appreciate my parents even more when I moved back home. While I wasn’t happy to be right back where I had started pre-college, I had a better understanding of what it would take to live on my own again.

My parents helped me get back on my feet while offering financial as well as emotional support. Once I was making enough to get my own place, I moved out with the knowledge that I was always welcome to return. Having that safety net made the transition much easier.

4. It’s possible to live well on less

As I’ve already said, I am a natural spender. When I previously worked retail, I had joked that my employers should have paid me in-store credit, since all of my money went to shopping. Despite the fact that I had a paycheck that should have been going to savings while in school, I spent all of my money – every last cent.

In my house growing up, my mother was the saver and my father was the spender. I took after my dad, with a natural inclination toward making money and spending it quickly. No matter how much I tried, I was never able to save a significant amount before giving in and spending it all.

Facing my mountain of debt without the safety net of a paycheck was a wake-up call. That was when I realized the value of spending less so I could build cash reserves. Had I not spent my entire paycheck on clothes and food, I would have been able to set aside enough to pay my bills. Better yet, I would probably not have racked up so much credit card debt in the first place.

I learned the hard way to separate my needs and wants. Knowing that my income was limited and that I had debts to pay, I made some tough choices and skipped fun experiences with friends. Many of the things that I desperately craved were just wants. There wasn’t much that I truly needed to be happy.

Related: How One Woman Paid Off $10,000 of Debt in 11 Months

The Bottom Line

Following the advice of several personal finance blogs empowered me to turn my finances around and taught me the value of living on less and saving the difference. Thanks to those important financial lessons, I finally paid off my debt and built a cash cushion.

Now that I am debt-free, I can look back on that time in my life as a valuable learning experience. While I didn’t appreciate my struggles at the time, I can see now how those difficulties shaped my worldview for the better.

These days, I love figuring out different ways to save money and build my cash cushion. My husband and I are debt-free – including our mortgage and vehicles. The lessons that I learned early on motivated me to broaden my financial knowledge, and ultimately led me to where I am today.

The post 4 Things I Learned Paying Off $30,000 in Student Loan Debt appeared first on DollarSprout.