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While my passion is to encourage you to become a CRNA, I am also all about living a debt-free life. So here is my story… I hope it inspires you to start kicking debt to the curb as I did with my credit card debt.

When I graduated from CRNA school in August 2018, the amount of debt I accumulated was astounding. I believe every bill was either behind or due right at that moment. I had one car payment left and I couldn’t even figure out how to make it.

I remember thinking this is crazy. I made it through CRNA school struggling but still able to somewhat pay my bills on time. But I had no money to pay my bills from my last day of school until I started my new job as a CRNA. So as soon as I began working, I began my debt payoff journey. Mostly because I was stressed and tired of all the debt surrounding me. I was more sick of paying credit card and loan companies hundreds of dollars in interest every month. So I decided to do something about it.

If you have credit card debt or any kind of debt you are not alone. According to Experian, Americans are drowning in credit card debt alone. They report the average credit card debt carried has reached an all-time high of $6194 in the year 2019.

I know you are thinking, “It’s not possible to pay off your credit card debt”. Today, I am proof that it is possible with the right tools and mindset. I hope my story inspires you right now to start tackling your debt head-on. Today I want to share some of the things I did to pay off $19,889 in credit cards and personal loan debt in 9 months.

I know if I can do it. You can also.

Let’s get started!

• Read: My CRNA Journey: Surgical Tech to CRNA- The Unbelievable

I studied budgeting experts.

My #1 most important tip is listening to other successful budgeters like Dave Ramsey and Kumiko Love of The Budget Mom. You don’t have to follow everything they say to a tee but choose what works for you.

I downloaded the EveryDollar app, Dave Ramsey’s free budget tool, which allowed me to track my spending. I also utilized Dave Ramsey’s Financial Peace Personal Finance software I already had at the house. This software has many great tools but I mostly use the debt snowball calculator.

Again, The Budget Mom by accredited financial counselor Kumiko Love has been so inspiring. She has a ton of free financial advice on her site. She has an awesome paycheck bill tracker which I live by and use when I get paid. I recently bought her latest edition of the Budget by Paycheck Workbook which allowed me to create my own financial goals.

I listed all my debt.

Before you even begin to think of creating a budget, you need to figure out where your money goes every week. This is a critical step in paying down your debt. This will also hold you accountable and in my opinion, keep you motivated as you cross off debt already paid off.

Believe me, you think you know how much debt you have, but you don’t truly know until you write it down. You must face the hard truth that you are in debt to begin tackling the problem.

I formulated a plan using the debt snowball method.

You must have a debt payoff plan in place. It’s important to see where you are and how far you have to go. I decided I would attack my debt using the snowball method. The snowball method involves paying off debt from the smallest to the largest amounts owed. This gave me instant gratification and allowed me to stay motivated.

I believe my smallest credit card debt was a Kohl’s credit card for $206. I remember I was able to knock out a few of my lowest debts with my first paycheck as a CRNA on Dec 5, 2018. It felt good to see the progress I made even though there was still a ways to go.

I used the cash envelope system.

Creating a budget and the cash envelope system tends to go hand in hand. The envelope system is not new by any means. But many people have no idea how it could help them get out of debt.

Over the years I used the cash envelope system off and on. Nothing too fancy just plain envelopes from the local store. But when I decided to tackle my credit card/ personal loan debt, I began to use the cash envelopes created by The Budget Mom. Once I began using cash, I was able to track my spending more effectively.

 

I made biweekly payments.

Paying biweekly on my credit cards and personal loan allowed me to save a ton of money on interest. I was also able to pay off my personal loan a lot faster. As a result, I was able to pay off a 36-month personal loan totaling $6698 in only half the amount of time.

Before going this route, I would check with the lender to confirm the extra payments will be applied to the principal first. Also, make sure your loan agreement doesn’t contain any prepayment penalties.

I cut down on monthly expenses.

I cut my expenses drastically. I think I went too far in the beginning. I swear I was barely buying any groceries for the first couple of weeks. Again, creating a budget is necessary to see where your money is going and where you can cut expenses.

If you remember earlier, I only had one car payment left in the last month of my CRNA journey. So once I paid this off I was able to save an additional $500 a month. I put this extra money towards my credit card debt.

I ate out less and cooked at home more. I also found a cheaper cell phone plan. I began to use apps like Ibotta and Fetch Rewards to earn points and save money by scanning my grocery receipts. I went a step further and canceled all my subscriptions to magazines and streaming services like ESPN.

I increased my income.

My income increased substantially when I began working as a CRNA. Read more on how to become a CRNA, here. So this allowed me to pay off my credit card and personal loan debt at a faster rate than some. While everyone may not be in that position, they do have the ability to earn extra money.

There are multiple ways to earn more money, such as getting a second job or a side hustle. It all just depends on what sacrifices you are willing to make to earn extra money.

Essential steps and conclusion

First, getting out of debt is no small task. But it’s not impossible either. Things may seem overwhelming at the moment. I get it. But to get out of debt I formulated a plan and got to work. To overcome my credit cards and personal loan debt, I took the following steps:

• Followed people who had an understanding of money and debt.
• I put pen to paper and listed all my debt.
• Used an all-cash envelope system to see where my money was going.
• Paid off my debt from smallest to largest which is known as the debt snowball method.
• Started making biweekly credit card and personal loan payments.
• Decreased my monthly expenses.
• Increased my income substantially by becoming a CRNA.

I hope these tips will be helpful to you as you navigate your debt-free journey while on your way to becoming a CRNA! Next up for me will be eliminating my student loans.

Kiki- The CRNA Chase