I Just Put the Equivalent of My Old Salary to Debt

by Melanie

I am so excited to share my debt totals today. This is a far stretch from my lackluster payments the past few months, which I was embarrassed to share with you.

But finally my income has started to increase. Finally my hard work is paying off.Β  It’s the greatest feeling in the whole world to have my income improve and have people come to me for work.

I feel like when you first start out, you hustle hard, work for low pay and you are trying so hard to build a name for yourself. If you work hard, those things do all work in your favor — eventually.

Before you think I have a glamorous life, or that it has come easy, let me offer some perspective. My RescueTime tells me I have logged nearly 60 hours a week since I started. I also work every weekend and every day β€” something that I’d like to change. Even so, I’m still grateful.

Starting this blog was the best thing I ever did. Yes, this blog itself hardly makes any money (no Adsense here), but it has served as a platform for my writing. It’s my own little space on the internet. And I’ve met the most beautiful and inspiring friends — and I hope to make more at FinCon this year (are you going?!)

So, drum roll please…

I put $1,700 to debt, $300 to my moving fund and $100 to other savings goals. That’s $2,100 towards debt and savings this month! I know for some debt rockstars that’s a normal payment and I applaud you! But let’s review my financial situation.

One year ago my take home salary from my nonprofit job was $1,800 per month. And the year before that, I was working a seasonal temp job and bringing in $1,300 a month.

Essentially, I put the equivalent of my old salary and then some towards debt and savings! I can’t believe it.

If you’re a long time reader, you know that when I started this blog I was not in a good place. I got a master’s degree and moved to Portland to be with my partner and could not find a full-time job. After previously having a successful career in LA, (which also at its max only made $38,000), I was disheartened and deeply in debt. Everything felt like a joke and a sham.

When you are in that deep of a depression, it’s difficult to remember that there are blue skies beyond the gray clouds. All you see is the storm and it feels like it will never go away.

I want to cherish this moment because I want to remember that good times and bad times come and go. Nothing is forever. So if you are dealing with a particularly tough time right now, have faith, and keep trying. It will get better. I promise. It may take years and test your patience and make you feel like you are losing your mind. But life isn’t for the weak, it’s for the fighters. You can do it.

Because I’m dealing with an upswing right now, I want to practice gratitude for this moment. It could be stripped of me and things change month to month. So I will celebrate this win and continue to work hard and be grateful for everyone that has helped me along the way.

After putting all that money to debt, here are my final numbers:

Undergraduate Loan: $5,490.83
Graduate Loan: $25,293.67
Total Debt: $30,784.50

Ahhh, I’m so close to getting to the twenties! Probably next month. I took out a total of $81,000 in debt in my lifetime and when I graduated with my M.A. in 2011, I had $68,000 left.Β  I’m hoping that I can continue on this path of growing my income and expediting my debt repayment. Even though my payments have been large, relative to my income, this process is still dragging out. I am sooooooo done with debt.

All of this has me questioning my potential move, which is crazy. I keep wondering if I can just hold on a little longer and enjoy the lower cost of living (compared to where we want to move) and kill this debt in a year or two.

We’ll be making a final decision about everything in August, so we’ll see. But I’m worried as I generally don’t love Portland nine months out of the year, but the summer is so freaking glorious here. I will try to make an unbiased decision in August, but I know the nice weather will be cooing sweet nothings in my ear.

So, that’s my exciting debt update! Also, if any of you have been dying to write a dear debt letter, I’d love to feature your letter over the next two weeks while I’m on vacation. People generally feel some sort of catharsis through the process of writing a breakup letter, so I highly recommend it.Β  πŸ™‚

How was your debt repayment this month?

Melanie
Latest posts by Melanie (see all)

53 comments

Nicola April 22, 2015 - 11:09 am

Congratulations on being able to pay off such a fantastic amount! You are so close to the $20s! πŸ™‚

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Melanie April 22, 2015 - 11:46 am

So close! I can’t wait!

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Robin @ The Thrifty Peach April 22, 2015 - 11:17 am

I think its time to consider yourself a debt repayment rock star!
I’m undecided about fincon. I’ve never been, and I wonder if I should save the money.

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Melanie April 22, 2015 - 11:46 am

Haha, thanks! FinCon was the best investment for my career. I definitely made up any money I put into it!

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C@thesingledollar April 22, 2015 - 11:17 am

That’s wonderful! It’s such a good feeling t make a huge debt payment — but even better to see your hard work literally paying off.

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Melanie April 22, 2015 - 11:44 am

It feels so nice!

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Tonya@Budget and the Beach April 22, 2015 - 12:19 pm

So happy for you Melanie! I’ll keep my fingers crossed that the upswing continues! You’re right in when things are tough to just hold on and keep holding on till things turn around!

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Melanie April 22, 2015 - 8:07 pm

I hope so too!

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Kirsten April 22, 2015 - 12:19 pm

Melanie, I am so happy for you! I do hope you can cut back your hours, but I know there’s probably a bit of a rush because you know it’s literally paying off!

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Melanie April 22, 2015 - 8:06 pm

I hope I can cut back too. The goal is to work less and earn more. What can I say, it’s a work in progress.

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Kayla @ Shoeaholicnomore April 22, 2015 - 12:49 pm

I am going to FinCon. I’ve already bought my ticket and booked my flights. Super pumped about it! Can’t wait to meet everyone, soak up some knowledge, and make some new connections that hopefully lead to more/new jobs. πŸ™‚

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Melanie April 22, 2015 - 8:04 pm

Can’t wait to meet you! It’s such a great event and you’ll make a ton of connections.

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Debt Hater April 22, 2015 - 12:56 pm

Awesome job!! That’s a huge payment and you should be under 30k with your next payment. It’s a great feeling when your hard work is finally paying off (literally in this case)!

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Melanie April 22, 2015 - 8:02 pm

Yes, it feels so darn good!

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Shannon @ Financially Blonde April 22, 2015 - 12:56 pm

SOOOOOOOOOOO excited for you Melanie!!!! This is HUGE and you are just one payment away from hitting the 20s which is so freaking awesome!!! Congrats girl! You work SO hard and I am glad it’s paying off for you!

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Melanie April 22, 2015 - 8:01 pm

Yayyyyy! 20s here I come!

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Kara April 22, 2015 - 1:09 pm

Way to go, Melanie!!!!

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Melanie April 22, 2015 - 8:00 pm

Thanks, Kara! πŸ™‚

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Alexis April 22, 2015 - 2:24 pm

Congrats–you’re getting close! I’ve never thought to think about the amount I’ve put towards debt since I started paying in November 2013–I’m a third through my (current) salary.

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Melanie April 22, 2015 - 8:00 pm

Nice! For me, it really keeps my progress in perspective.

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MarieMakesCents April 22, 2015 - 3:30 pm

Everything happens for a reason! It sounds like all your work is paying off. I can’t wait to read about when you knock that number into the 20’s, and then the 10’s, and then… !!!
Congrats.

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Melanie April 22, 2015 - 7:59 pm

Me either! πŸ™‚ Thanks so much for stopping by!

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Michelle April 22, 2015 - 9:43 pm

Great job with your debt repayment! You are doing great. You’ll be in the 20’s very soon πŸ™‚

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Melanie April 23, 2015 - 3:19 pm

Heck yeah I will! Next month, baby!

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MJ April 23, 2015 - 4:16 am

Great job! How exciting. It’s really inspiring to see how all the hustle is paying off.

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Melanie April 23, 2015 - 3:18 pm

Thank you! πŸ™‚

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Kali @ XY Planning Network April 23, 2015 - 12:39 pm

Holy cowwwww lady, nicely done! Excited for you — that’s a wonderful update and you should feel incredibly proud of the progress you’ve made. You’re really kicking ass! πŸ˜€

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Melanie April 23, 2015 - 3:17 pm

Thanks, girl! πŸ™‚ Crossing my fingers and hustling my butt off to continue this progress.

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Abigail @ipickuppennies April 23, 2015 - 2:01 pm

Congrats! It’s always so exciting when you’re able to make headway.

This last month was a banner one. We were able to put $2,000 into savings. It was like a dream!

Granted, the money is already spent on an upcoming medical bill. But at least it’s progress toward that goal. It’s sort of like prepaying our debt.

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Melanie April 23, 2015 - 3:16 pm

It feels good. I think this may be an odd month, but I’ll take it. At least you have that money in savings for the medical bill!

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Jessica April 23, 2015 - 5:05 pm

That’s great that your hard work is paying off and you were able to make a nice payment towards your debt! I’ve had a really expensive month and unless something changes it looks like I’ll only be paying my minimum payment or only about $100 extra to my loans this month. But, like you said, as long as I keep working towards it and things will get better.

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Melanie April 29, 2015 - 9:30 pm

Hey anything extra is helpful! Keep it up and you will see a difference.

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Amanda S @ Passionately Simple Life April 24, 2015 - 5:45 am

Congrats on your progress! Keep on going and before you know it, all that debt will be gone!

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Melanie April 29, 2015 - 9:28 pm

Yeah it will!

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Isabella April 24, 2015 - 11:13 am

This must be SO encouraging for you! Congratulations!

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Melanie April 29, 2015 - 9:27 pm

It is, Isabella! Thanks!

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Michelle April 24, 2015 - 3:54 pm

I am so proud of you!! And when it’s paid off and someone says “You had it easy.” I will the friend who laughs and says “Melanie worked her ASS off!” And, I’ll buy you a drink πŸ™‚

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Melanie April 29, 2015 - 9:25 pm

And that will be the best drink everrrr!

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Petra April 25, 2015 - 2:02 am

Congratulations, and well done. Keep it up!

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Melanie April 29, 2015 - 9:22 pm

Thanks!

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Chonce April 27, 2015 - 12:11 pm

Congrats on the debt and savings payments that’s awesome! You story is very inspiring as well πŸ™‚ I made a large payment on my debt this month thanks to a tax refund but I’m hoping to pick up more momentum throughout the rest of the year. I’ll be attending FinCon as well, I’m pretty excited.

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Melanie April 29, 2015 - 9:22 pm

Congrats! Can’t wait to meet you at FinCon!

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Kate @ Money Propeller April 27, 2015 - 5:00 pm

Great job Melanie! I’m looking forward to pay my debt too before this year ends, “hopefully”. πŸ™‚

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Melanie April 29, 2015 - 9:21 pm

You can do it!

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Tre April 28, 2015 - 6:41 am

Congratulations! It feels great when you can put a large payment towards your debt.

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Melanie April 29, 2015 - 9:21 pm

It feels awesome!

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Lisa April 28, 2015 - 2:10 pm

Mel, this is amazing!!!! I could only hope to make this much progress in one month! Great job πŸ™‚ As always, I’m rootin’ for ya!

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Melanie April 29, 2015 - 9:20 pm

Thanks, girl! You are the best!

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Prudence Debtfree April 28, 2015 - 6:51 pm

Congratulations, Melanie! What you say about the transience of bad times is so important for people to bear in mind. Sometimes, the best you can do is to hold on – and that’s good enough. So glad you’re having the opposite experience now. I hope it is a long lasting stage. Perhaps Portland winters won’t be so bad when everything else is going so well?

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Melanie April 29, 2015 - 9:19 pm

It’s so key! I thought the bad times would never go away…but they do.

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Eric April 29, 2015 - 4:09 pm

Great job with that big lump payment! I know how it feels to inch closer to paying off the student loans.

Thanks for letting my site be a stepping stone on the way to the great things you are doing now!

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Melanie April 29, 2015 - 9:18 pm

Thanks, Eric! Thanks so much for the opportunity and being such a great friend. You are an inspiration.

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Money Saving April 30, 2015 - 5:34 am

Congrats Melanie! You go girl! Don’t forget to also invest some money πŸ™‚

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