Developing good financial habits can get you out of debt, especially if you’re willing to commit to the long haul. A 26-year-old is currently $20,000 in debt and shared their story on Reddit.
This individual is a registered nurse who works four to five shifts per week, when it is normal to work for three shifts per week. The original poster said they are exhausted, but they bring in $2,800 biweekly, which comes to $5,600 per month. The Redditor then listed off some expenses, including rent, utilities, and food, which came to a combined $2,825 per month.
Some Redditors offered advice for getting out of debt, while others had questions about the numbers.
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The Solution Sounds Simple
One of the top commenters came from a Redditor who questioned why it’s an issue. Although $20,000 in debt is a problem, the registered nurse has almost $3,000 in free cash each month.
“You can pay it off [in] under a year easily,” one Redditor said, while mentioning that it came down to simple math.
Another Redditor responded to the comment with additional information, which adds more confusion about why this is an issue.
“It gets crazier,” the commenter said. “He commented somewhere else [that] he only pays half of the rent, so his expenses are less than $2,000.”
With this information, the approach to paying off the debt is pretty simple. Take all of the extra biweekly money and put it toward the debt. After paying off the debt, the 26-year-old can prioritize building an emergency fund and making investments.
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Live Below Your Means
It sounds like the Redditor already lives below their means, unless there are some big expenses we don’t know about. However, this advice came up in the comments, and it is a valuable insight for any young professional who wants to get out of debt sooner.
“You have to start living [below] your means, even if it’s finding a cheaper place. That’s the fastest way to shave off the cards,” the commenter said. “Having a secure income makes this a lot easier for you to do. Just be prepared to cut back on spending and budget, and keep track of your interest rates.”
Avoiding lifestyle creep will also put the registered nurse in a good position whenever the individual earns more money. Keeping your monthly expenses the same makes it easier to stay out of debt and build long-term wealth.
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Get A Lower Rate
Aggressively paying off debt is the best step the registered nurse can take. However, it may be possible to secure a lower interest rate. While a lower interest rate won’t reduce the balance, that lower rate will reduce the speed at which unpaid debt grows.
“Look into a balance transfer or personal loan if you can get a lower rate,” the commenter said. “You’re already hustling with extra shifts, just make sure you don’t burn out. Slow but steady progress adds up fast.”
It takes time to pay off a big debt. Maintaining financial discipline and contending with the tighter schedule is worth it in the long run. The registered nurse won’t have to work four to five weekly shifts forever. At this rate, it’s realistic for the registered nurse to be debt-free within one year. The registered nurse can view the busy schedule as a consequence of poor spending and remember that the next time they want to binge on unnecessary purchases that they can’t afford.
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