Even if you are drowning in a sea of debt, there is still hope that you will find your way out.
Don’t believe it? Kimberly Palmer of U.S. News & World Report shared the story of Amy and Mat Kroezen, a young couple that started out with $116,000 in student loan debt and another $2,000 owed on a car loan. Palmer wrote:
In April 2009, they committed to paying off their debt within four years by dedicating one of their incomes entirely to paying off debt and then living off the other income. At the time, Kroezen and her husband were each earning between $32,000 and $35,000. Now a growing family with a 2½-year-old daughter and another baby on the way, they are very close to achieving their goal – and they say their strategy could work well for other families, too.
What a wonderful story. They’ve paid off more than $100,000 on the student loans and also bought a house with a $20,000 down payment. Mat Kroezen is the sole earner now. They live on $19,000 and save the rest, Palmer wrote.
Want the inside scoop on how they did it? Here are a few tips from the story:
- They moved to a less expensive apartment, one that was close to work.
- They used the envelope system to budget.
- They spent only on necessities.
- They had a solid support system.
What do you think of their story? Let us know in the comments below or on our Facebook page.